AI is projected to boost global productivity by up to 1.5 per cent annually, potentially driving significant GDP growth, according to a report by the European House Ambrosetti commissioned by IBM.
By 2030, approximately 729 million people are expected to utilise AI tools, up from 314 million today, the report estimates.
Despite these projections, the report found AI adoption is hindered by a significant skills gap, with one third (33 per cent) of companies globally identifying it as the biggest barrier.
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Lorenzo Tavazzi, senior partner and head of scenarios and intelligence at TEHA Group, said AI has the potential to “redefine the future of work”, but a comprehensive approach is required to prioritise skills development and “ensure no segment of society is left behind”.
Mike Chatterton, founder of AI Accelerator, told People Management AI represents a “radical shift” that impacts “every facet of how businesses operate”.
“As this technology continues to evolve, it’s becoming increasingly clear to those using it extensively that AI will touch every part of a business, from strategy and operations to customer interactions and decision-making,” he added.
Maintaining productivity with AI
Investment in AI is rapidly increasing, with global private investment growing by 134 per cent in the last five years. Nearly half (42 per cent) of worldwide companies have already adopted AI-based solutions, according to the study.
The UK has experienced lower productivity growth in the period from 2013-2023, compared to the period from 2002-2012, but AI use is expected to reverse this trend.
The country will need an annual growth rate of 0.7 per cent, 0.2 percentage points more than 2013-2023, to maintain current GDP growth levels.
Hayfa Mohdzaini, senior policy and practice adviser for technology at the CIPD, said AI “has the potential to bring significant productivity gains to the UK economy and enhance roles” as employees spend less time on repetitive and administrative tasks.
Chatterton similarly emphasised that AI drives growth and productivity by “enabling dramatic efficiency gains”.
“Organisations we work with that are using generative AI tools have seen up to 80 per cent reductions in effort for tasks like proposal writing or procedure development. However, these gains are often limited to isolated individuals or teams experimenting with the technology, meaning its full potential remains untapped,” he added.
The report identified six job occupational groups most impacted by AI — managers, professionals, technicians, clerical support workers, service and sales workers, and plant machine operators and assemblers — representing around 79 per cent of the working-age population.
Amongst the groups, an average of 21 per cent of routine tasks faced automation, and the majority of the tasks will be augmented (79 per cent), the report found.
AI was predicted to have a direct impact on 83 per cent of tasks in these groups (43 tasks out of 52 tasks identified), ranging from 60 per cent of tasks for technicians to 100 per cent for plant and machine operators.
Ross Pepperell, founder of Appy Automations, told People Management AI makes employees much more efficient, and combining it with automation leads to a “scaling effect that amplifies the potential benefits”.
Addressing the skills gap
The report highlighted a growing skills mismatch, where workers do not have the necessary skills to perform their roles. This currently affects half of workers (50 per cent) across the US, UK, Japan, France, Germany and Italy, it said.
It estimated that over 43 million workers in the UK will need some sort of training in AI by 2030. Non-traditional pathways, such as online courses and digital credentials, will be favoured by 11 million of these workers.
Traditional university courses in AI have increased by an average of 22 per cent from 2017 to 2023, but 80 per cent of them still focus on traditional STEM fields.
Chatterton said investing in AI skills development is “akin to the early days of the internet, when organisations that built a broad understanding early on gained a significant competitive advantage”.
He explained that the AI skills gap has two sides – technical creation and applied usage, and employees are often experimenting without guidance and structure.
“On the technical side, organisations looking to build AI solutions face challenges in finding highly skilled talent or investing in advanced training, which can be high-risk without guaranteed outcomes. On the applied side, tools like generative AI are transforming how work gets done, but adoption is often ad hoc,” he added.
Chatterton emphasised that relevance is key, as once employees see the value of AI they will be more motivated to develop their skills.
Mohdzaini said: “The types of skills that they need to develop will depend on how AI might impact their roles and their type of involvement. Through training and fostering a culture of shared learning and cross-team collaboration, organisations can help their employees to develop their skills or reskill as necessary, to ensure no one gets left behind.”
Justina Nixon-Saintil, vice president and chief impact officer at IBM, said collaboration among schools, universities, community colleges, nonprofits and governments is “essential” for expanding access to AI education and bridging the skills gap.
“As we look ahead to 2025, we know a skilled workforce is vital for unlocking AI’s full potential, which is why we’re committed to training 2 million learners by the end of 2026. This report highlights the need to broaden our collaborations, and we invite others to join us in this important effort,” she added.
How can employers close the gap?
Chatterton urged organisations to adopt AI “strategically” and share knowledge and best practices across domains.
He emphasised that a “cross-pollination of ideas” can ensure that productivity gains benefit everyone, so that businesses can foster innovation and remain competitive.
“By equipping employees with even a basic understanding of AI as a tool, organisations position themselves to stay ahead of the curve. This broad awareness accelerates innovation, fosters experimentation, and ensures the entire workforce can contribute to uncovering AI’s potential,” he said.
“In a world where AI is reshaping industries, having a workforce that understands and embraces this shift is essential,” he added.
Pepperell said adopting AI is not just a technical exercise but is ultimately about people.
“If there is a shared vision about the AI roadmap, where both the employers and employees are aligned, that’s where you see the greatest benefit,” he said.
He urged organisations to start small, and then scale-up efforts assigning responsibility to key employees who can share their knowledge, to create a “compounding effect”.
A framework is necessary, considering both a management and an employee perspective, he noted.
“You need to evaluate the basic level of understanding of your employees and ensure that there are some foundational AI skills, while considering how you will measure success and steer your AI projects responsibly,” Pepperell explained.
Read the CIPD’s Co-existence of workers and AI research
