Untrained Managers Stalling Britain's AI Returns, Research Reveals
British businesses are pouring substantial capital into artificial intelligence, but meaningful returns remain far from guaranteed according to new research. The Chartered Institute of Management has uncovered troubling statistics about how AI implementation is being managed across the country.
Leadership Deficit in AI Implementation
The CMI's survey of over 1,000 managers reveals a significant leadership deficit in AI adoption. Only one in eight managers feel confident leading AI implementation within their organizations, while two in five openly admit they lack the necessary training to make AI work effectively. This skills gap is directly impacting productivity outcomes.
Just one in 20 managers report achieving real, transformational productivity gains from their AI investments. Meanwhile, a concerning one in four managers say they have seen no benefit whatsoever from AI implementation. These findings suggest that simply acquiring AI technology is insufficient without proper leadership and training.
"Untrained managers are holding back Britain's AI boom," stated CMI chief executive Ann Francke. "Getting AI in the door is the easy part. Making it actually deliver is much harder, and comes down to how organizations are led."
Board-Level Knowledge Gaps
The problem extends beyond middle management to the highest levels of corporate leadership. The Digital Institute's annual 'what directors think' report reveals a significant disconnect at board level regarding AI expertise and implementation.
While AI ranks as the number one priority for 2026, with 42 percent of directors citing it as a major investment focus, only three percent say they use it extensively in their own work. Even more concerning, just eight percent report that their boards have strong AI knowledge - the lowest domain expertise score recorded across every category in the survey.
"Many boards are being asked to govern, fund and champion transformation that few have yet integrated into their own practice," explained Dottie Schindlinger, executive director at the Diligent Institute. She warned that without proper governance structures, investment can easily outpace oversight, making it difficult to track performance and ensure capital is deployed effectively.
Practical Solutions and National Skills Initiatives
Schindlinger emphasized that practical solutions exist, including clear policies on AI use, careful evaluation of new tools, and crucially, direct experience with the technology. "Directors who have personally used the AI tools their organizations are deploying are better positioned to evaluate proposals, challenge assumptions and assess progress," she noted.
The skills gap extends throughout the workforce, with government data showing only 21 percent of UK workers feel confident using AI technology in work settings. As of mid-2025, just one in six businesses had adopted AI, with smaller firms particularly affected. Micro-businesses are 45 percent less likely to adopt AI than larger firms.
In response, the public sector has expanded its AI Skills Boost programme, now targeting 10 million workers over the next four years. Partners including the NHS, CBI, techUK, Google and Microsoft are supporting this initiative. Free foundational courses are available to every adult across the country, complemented by a £27 million funding package to create up to 1,000 tech jobs in local communities.
Google UK managing director Kate Alessi addressed concerns about AI triggering mass unemployment, arguing that major technological shifts historically create more jobs than they displace. However, she acknowledged that "most people are really only scratching the surface of what these tools can do for them," highlighting the need for broader education and practical experience with AI technologies.
