British companies are investing heavily in AI, but a shortage of skilled managers may prevent them from fully capitalizing on this technology.
The UK’s aspirations to become a global leader in artificial intelligence face significant challenges due to a critical shortage of managers with the necessary skills to implement these technologies effectively. New research from the Chartered Management Institute (CMI) highlights that while British firms are enthusiastic about AI, they are not investing sufficiently in leadership development to scale adoption successfully.
The study, which polled over 1,000 UK managers and interviewed senior leaders like Jacky Wright and Dr. Nicola Hodsonreveals a stark contrast between the ambition to adopt AI and the preparedness to manage its integration. The findings suggest that while AI is reshaping workplace culture and decision-making, many organizations are struggling to keep pace with the necessary leadership capabilities.
Modest gains and experimental phases
The research identified several key trends in how British workplaces are adapting to AI. Notably, while 70% of managers report some productivity improvements from AI, only 5% describe these gains as transformational. More than a quarter of respondents (26%) have seen no productivity gains at all.
This suggests that many firms are still in the early stages of AI adoption, with over two-thirds (68%) testing AI or running early-stage pilots.
Despite this, over half (52%) of managers believe their organization will be ‘AI future-ready’ within the next year. This optimism contrasts with the reality that many organizations are still experimenting with AI technologies, indicating a gap between ambition and execution.
Leadership and confidence challenges
One of the most significant findings is the lack of active leadership in AI adoption. While 64% of senior leaders encourage experimentation with AI, only 13% of managers strongly agree that senior leaders are actively using the tools themselves. This disconnect highlights a critical issue: the need for leaders to model the use of AI technologies to drive widespread adoption.
Confidence in leading AI-enabled teams remains low, with just 12% of managers feeling ‘very confident’ in managing teams using AI. This figure drops to 10% when considering more advanced agentic AI systems. The research also reveals that 70% of managers are turning to generative AI tools for workplace guidance, perceiving them as faster and more technically detailed.
Expert insights and recommendations
Jacky Wrightformer Chief Technology and Platforms Officer at McKinsey and Chair of the CMI AI Advisory Council, emphasizes that ‘AI adoption is not just a technical challenge, it is a management challenge.’ She notes that successful organizations are those that invest equally in leadership, culture, and workforce confidence.
Ann FranckeCEO of CMI, warns that ‘there is a real risk the UK falls short of that opportunity if organizations fail to equip managers with the skills and confidence needed to lead change effectively.’ She stresses that Britain cannot become an AI leader if leadership capability itself is left behind.
Lorna WillisCEO of TechSkills, highlights that AI is reshaping not only how organizations operate but also what leadership itself looks like. She argues that in the AI era, technical expertise alone is not enough. Leaders must be able to communicate clearly, build trust, encourage curiosity, and help people adapt confidently through change.
The report argues that AI adoption will increasingly depend on managers developing stronger human and strategic leadership skills alongside technical understanding. It calls on organizations to treat AI implementation as a major organizational change program, requiring investment in leadership development, workforce confidence, and responsible governance.
