Employers are missing out on significant levels of AI productivity gains amid flaws in their recruitment strategies.

A new report from EY 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 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.

It warned despite widespread AI adoption, there remain workplace AI anxieties; 43% of employee respondents said they worry that an overreliance on AI could erode their skills and expertise.

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%.

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.”

The report added 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,” it added.