Kyndryl released its second annual Kyndryl Readiness Report, drawing on responses from 3,700 senior leaders across 21 countries. The data reveals an instance of momentum and reflection – as businesses report growing returns from AI investments while facing mounting pressure to modernise infrastructure, scale innovation efforts, reskill workforces and manage risk in an increasingly fragmented regulatory landscape.
“A readiness gap exists as enterprises grapple with the promise of transformative value from AI,” said Martin Schroeter, Chairman and CEO of Kyndryl. “While 90% of organisations think they have the tools and processes to scale innovation, more than half are stalled by their tech stack, and less than a third say their employees are truly ready for AI. Closing that gap is the challenge and opportunity ahead.”
Last year’s report revealed a critical gap between perception and preparedness: while 90% of business leaders believed their IT infrastructure was best in class, only 39% felt it was ready for future disruption. While there has been momentum – that tension remains. This year:
AI spending rises along with ROI expectations – with cyber resilience top of mind
Business leaders across all industries and countries say their company’s AI spending jumped 33% on average since last year, with 68% investing “heavily” in at least one form of AI. As AI investments rise, so does the pressure to show value – and protect it. Three in five leaders say they feel more pressure this year to deliver ROI from AI than last. Their top use case? Cybersecurity.
Cloud is under pressure as geopolitical and regulatory disruption drive change
Many organisations are also revisiting their cloud infrastructure, prompted by new global regulations and growing concerns about data sovereignty. Three in four leaders report concerns about the geopolitical risks associated with storing and managing data in global cloud environments, and 65% have adjusted their cloud strategies in response – by investing in data repatriation, reassessing vendors, and shifting toward private cloud models.
Talent and culture – the next readiness frontier
