UK employers miss 40% of AI productivity gains

• 83% of UK employees now use GenAI at work but 40% of AI productivity gains are still being lost due to ineffective AI training, weak company culture and misaligned employee rewards 
• The EY survey uncovers workplace AI anxieties with 43% of UK respondents concerned that an overreliance on AI could erode their skills and expertise, whilst just 11% are receiving adequate AI training
• 62% of UK respondents reported an increase in their workloads over the last year, yet less than 5% are using AI to fundamentally transform the way they work 

A new survey has revealed that UK companies are missing out on 40% of AI productivity gains due to gaps in their talent strategy.

The EY 2025 Work Reimagined Survey, which includes 800 UK employees and 180 UK employers, found that 83% of UK employees now use GenAI at work, although this is limited to basic and process-driven tasks such as search and summarisation. The survey found that whilst 62% of employees have experienced an increased workload over the past year, fewer than 5% are leveraging GenAI in advanced ways to fundamentally transform their working practices.

Despite widespread AI adoption, the survey also uncovered workplace AI anxieties; 43% of employee respondents said they worry that an overreliance on AI could erode their skills and expertise.   

Inadequate training is leading to ‘shadow AI’ solutions 

Less than half of UK employee respondents (47%) said their organisation had a clear vision on how AI is executed within their organisation, with only 11% of employees receiving adequate AI training. Despite attempts by employers to offer internal AI tools, ‘shadow AI’ – the unauthorised use of AI tools or applications – is still prevalent, with 32% of UK employees using their own AI tools in a work environment.  

The survey revealed that investing in AI technology alone does not deliver substantial improvements in productivity – it must be combined with strong talent foundations. Organisations with weak talent strategies – such as ineffective training, weak company culture and misaligned rewards – saw AI productivity gains lag by over 40%. 

Organisations that do successfully combine a supportive workplace culture, learning opportunities and robust rewards system into an integrated talent strategy, which is referred to in the research as achieving a ‘Talent Advantage’, will gain more value, but only 37% of UK employers are currently on course to realise this.

To successfully achieve a ‘Talent Advantage’ and unlock transformational value from AI, organisations must excel in five key areas: AI adoption excellence, learning, talent health, organisational culture and reward structures

Josie Cluer, EY Partner, Leader for Humans x AI, commented: “These findings highlight the imperative for employers to rethink their approach to talent strategy and AI adoption. Whilst it’s encouraging that over four in five employees are embracing GenAI at work, a sustainable advantage requires a combination of both advanced technology and strong human foundations, with many employers missing out on substantial productivity gains because of gaps in their talent strategy. Too often, AI is limited to basic tasks, and concerns about skills erosion and job security remain widespread. 

“To unlock the full potential of AI, businesses must invest in comprehensive training, foster a supportive workplace culture, and ensure that reward systems are aligned to encourage innovation and responsible AI use. Only by creating an environment where talent and technology work hand in hand, can organisations achieve a true ‘Talent Advantage’ and future-proof their workforce.”

Talent health is improving but upskilling heightens retention challenges

The survey reveals that, whilst investing in employee upskilling accelerates transformation, it can also create challenges in retaining talent. UK employees who receive more than 81 hours of AI training each year experience an average productivity boost of 14 hours a week, significantly above the median of eight hours. However, these individuals are 59% more likely to move on from their current employer, as skilled AI professionals are highly sought after, with external job offers outpacing internal promotion opportunities.  

The survey also finds that overall employee satisfaction is rising, with fewer people planning to leave their jobs compared to recent years. The proportion of UK employees considering leaving their jobs is currently at 30% - the lowest level recorded since 2022, when it reached a peak of 37% during the ‘Great Resignation’.

Josie Cluer added: “Whilst we’re seeing employees become more cautious in a cooling job market, the landscape around AI is notably different. To tackle retention challenges, employers can consider a range of options such as providing holistic reward packages, flexible working arrangements and career pathways designed to make use of employees’ AI expertise.

“Strong leadership is also crucial for building a culture that embraces AI adoption and continuous learning. When leaders genuinely care for, trust, and empower their teams, they create the foundation for a healthy workplace culture that enables talent to thrive.”