New report reveals 'workforce readiness recession' on AI, putting AI transformation at risk
Employee readiness in using artificial intelligence tools is falling behind the ballooning investments that employers are making towards the technology, according to new findings.
New research from Achievers' 2026 State of Recognition Report has found that just 19% of employees feel confident in using AI tools at work, despite global corporate investment in AI reaching $581.69 billion in 2025.
Achievers called the disconnect a "workforce readiness recession," suggesting that employers may be underinvesting in human skills needed to successfully adopt AI tools while pouring money into AI infrastructure.
"AI ROI depends on people, so this isn't just a tech rollout but a behaviour change challenge," said Hannah Yardley, chief people and culture officer at Achievers.
"Billions in AI investment won't translate into impact if employees don't feel confident, informed, and supported."
The underinvestment in employees can also be observed in other aspects, according to the report, with just 18% of employees saying they feel informed when changes affect their job.
Only 18% also said they have access to AI-enabled training, according to the report.
"Technology adoption fails without sustained behaviour change," the report read.
"The behaviours AI transformation depends on - learning, experimentation, judgment, collaboration, and adaptation, are the very ones employees feel least supported to practice consistently."
Recognition is the key
Recognition is the "missing system" that workplaces need in order to reinforce the AI transformation in workplaces, the report argues.
"Recognition is not the reward at the end of AI transformation. Frequent recognition is the engine that powers it," Yardley said.
The report underscored that recognition can help turn priorities into action, build confidence under pressure, and stabilise performance through change.
Some of the actions that HR leaders can take to reinforce recognition include:
- Set recognition as a leadership expectation. Underscore that recognition is a core managerial responsibility.
- Use recognition to anchor manager cadence. Leverage recognition to support regular 1:1s and coaching conversations.
- Emphasise consistency over polish. Encourage simple, frequent recognition habits.
- Focus development where signals are weakest. Use recognition and manager data to identify gaps in coaching and support and then intervene deliberately.
"Recognition is one of the few things universally understood across roles, regions, and moments of change," said David Bator, managing director of the Achievers Workforce Institute.
"This makes it part of the essential infrastructure necessary for organisations to thrive. AI adoption won't stick because a tool is launched. It sticks when people understand what great looks like, feel confident trying new ways of working, and are recognised for the progress they make along the way."
