The AI Tightrope: What’s Really Keeping CTOs up at Night

The AI Tightrope: What’s Really Keeping CTOs up at Night

By: Rahul Kumar, Regional Director, Experis Europe

Last month I sat in a room with a group of senior technology leaders. The topic was AI strategy. Every single person had a slide deck. Every slide deck had a roadmap. And somewhere between the third presenter and the fourth coffee, one CTO leaned over to me and quietly said: “Honestly, I have no idea how we’re actually going to deliver any of this.”

That one sentence says more about the state of enterprise AI than most research reports combined.

The pressure to “do AI” has never been higher. Boards are demanding strategies. CEOs are pointing at competitors. Vendors are promising transformation in 90 days. And CTOs are sitting in the middle of it all − trying to build something real, on infrastructure that wasn’t designed for it, with data that’s a mess, and a leadership team that’s only just starting to understand what they’ve signed up for.

Here’s my honest read on the five things that are actually making this hard.

The infrastructure isn’t ready − and everyone knows it

Two thirds of CTOs openly acknowledge their networks can’t fully support GenAI workloads. That’s not a fringe concern; that’s the majority experience. And rushing past it doesn’t help − 76% of CTOs have said that moving too fast on GenAI integration will create serious long-term infrastructure problems. The urgency to act is colliding head-on with the readiness to deliver.

The data foundation is broken

AI doesn’t fix bad data. It amplifies it. Yet nearly 70% of IT leaders describe their data as siloed, and the vast majority of organisations hit significant data quality problems the moment they try to build anything serious with GenAI. This isn’t a new problem − but AI makes it impossible to ignore any longer.

The C-suite doesn’t speak AI fluently enough

This is the one nobody wants to say out loud. According to the IBM CEO Study 2025, only 25% of AI initiatives have delivered the ROI they promised − and just 16% have scaled enterprise-wide. Part of the reason? Leaders are sponsoring programmes they don’t fully understand, setting expectations that the technology can’t currently meet, and losing confidence when reality doesn’t match the pitch.

At Experis, we see this constantly in our research. The IT World of Work 2025 Outlook found that 76% of IT employers worldwide are struggling to find the skills they need − and AI tops the list of critical shortages. That gap doesn’t just affect technical teams. It reaches into the boardroom too.

Shadow AI is already in your organisation

Right now, while you’re reading this, your employees are using AI tools you don’t know about. Feeding them documents you’d rather they didn’t. According to Menlo Security’s 2025 State of Shadow AI Report, 57% of employees are inputting sensitive data into free-tier AI tools. The risk isn’t theoretical. It’s operational.

Most AI projects never leave the pilot phase

Gartner predicted that 30% of GenAI projects would be abandoned after proof-of-concept by the end of 2025. The pattern is everywhere: brilliant demos that go nowhere, enthusiastic pilots that quietly die, and portfolios of “in progress” AI projects that somehow never reach production. McKinsey’s research confirms it − nearly two thirds of organisations are still mostly experimenting, not scaling. Only 6% qualify as genuine AI high performers.

Here’s the counter-intuitive point I’d add to all of this: the biggest risk facing most enterprise AI programmes right now isn’t too little ambition. It’s too much of it, applied too fast, without the foundations to support it.

I’ve watched organisations kick off fifteen AI initiatives simultaneously, each backed by genuine enthusiasm and real budget, and deliver meaningful results from none of them. The ones that consistently outperform have a different instinct − they do fewer things, properly. One or two use cases, owned end to end, taken all the way through to real business impact. Then they build from there.

The organisations delivering results treat AI as a business transformation programme, not a technology deployment. They fix the data before they build the model. They invest in leadership fluency before they approve the roadmap. They define what success looks like before the pilot starts.

And they’re honest − internally − about what they’re not yet ready for. That honesty is rarer than it should be. But it’s the starting point for everything that actually works.

I’ll be exploring each of these five challenges in depth over the coming weeks — infrastructure, data, talent, governance and scaling.

And if you’re working through any of these challenges right now − whether it’s building AI talent pipelines, finding the right technical skills, or thinking through workforce strategy for an AI-driven organisation − it’s exactly what we do at Experis. Reach out to us  to find out how we can help. The organisations that will lead in AI aren’t the ones that started first. They’re the ones that started right. It’s still not too late to be one of them.

ManpowerGroup Employment Outlook Survey – Q2 2026

ManpowerGroup Employment Outlook Survey – Q2 2026

Is the UK labour market turning a corner? ManpowerGroup research shows cautious optimism.

Our latest report reveals a cautious optimism about labour market rebound. Hiring confidence has risen across the UK, with mid-sized businesses fuelling the outlook. 

Employers across the UK report a clear increase in hiring confidence for Q2 2026, with a Net Employment Outlook of 27% – a 15 percentage points rise on the previous quarter. This marks one of the sharpest quarterly uplifts in five years and indicates that hiring plans have strengthened broadly across the market. This is supported by early signs of business growth, with 47% of employers expanding and 26% moving into new areas that require additional roles. 

“The latest research shows cautious optimism in the labour market. Beyond a rise in hiring confidence, there have been early signs of recovery coming through in other parts of the economy with employer sentiment improving and housing market indicators stabilising. These are the kinds of movements that typically show up before we see shifts in real hiring activity. Having said this, we expect the current geopolitical uncertainty to contribute to further hesitancy, so growth predictions are fragile.” 

Michael Stull, Managing Director, ManpowerGroup UK

From a global perspective, the UK’s position has also improved, ranking 23rd out of 42 global markets and 7th out of 19 European markets. 

Hiring sentiment across UK regions

Hiring sentiment has strengthened across nearly every UK region, with Yorkshire & Humberside (34%) and South West (36%) leading the way.

Hiring intentions by business size

Mid‑sized businesses are setting the pace for hiring in Q2, with the strongest outlooks among organisations with 250-999 employees and 50-249 employees. Gains are also evident for smaller firms (10-49 employees); fewer than 10 employees and mid‑large companies (1,000-4,999 employees). The only group with a negative outlook remains the largest employers – those with 5,000+ employees (−4%). 

Hiring intentions by sector

We’re seeing improved outlooks across all sectors, with continued momentum in Information (38%) and Finance & Insurance (38%), followed by Manufacturing (34%) and Professional, Scientific & Technical Services (34%).

With confidence rising but ongoing geopolitical uncertainty still in play, there’s real curiosity about where this will take the labour market next. Find out more in the Q2 2026 ManpowerGroup Employment Outlook Survey report, featuring detailed insights on employer hiring intentions by industry, region, company size and seniority levels.

UK Talent Shortage 2026

Employers are not replacing people with Artificial Intelligence (AI). Despite the hype, only 10% of employers are using AI and automation to replace headcount. This is one of the key findings from ManpowerGroup’s 2026 Talent Shortage Survey.

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PEOPLE POWER TOPS AI IN LATEST RESEARCH AS UK SKILLS GAP DECLINES FOR SECOND YEAR

PEOPLE POWER TOPS AI IN LATEST RESEARCH AS UK SKILLS GAP DECLINES FOR SECOND YEAR

  • Only 10% of employers are using AI to reduce headcount, however workers with AI skills are the most difficult to find 
  • UK skills gap declines for a second consecutive year
  • ManpowerGroup encourages employers to focus on the skills and talent they need tomorrow to future proof their businesses

LONDON (26.02.26): Employers are not replacing people with Artificial Intelligence (AI). Despite the hype, only 10% of employers are using AI and automation to replace headcount. This is one of the key findings from ManpowerGroup’s 2026 Talent Shortage Survey.

While AI may be having minimal impact on headcount, it has, for the first time, been identified as the skill (19%) that organisations are having the most difficulty finding. Contrary to what many might assume, this does not cover tech skills but instead points to literacy and confidence in using AI to support existing roles.

Michael Stull, Managing Director, ManpowerGroup UK, says: “Our research continues to demonstrate the power of people. Machines and AI can help to amplify productivity and effectiveness, but only so far. People are the vital component in unlocking the full potential of AI. That is why we are seeing increasing demand for these skills, as people and AI need to work in tandem.”

The survey also identified a year-on-year decline in the number of UK businesses struggling to find skilled talent overall. This figure is down marginally from 76% in 2025 to 73% in 2026.   

Stull continues: “For 10 consecutive years the skills gap in the UK increased, so it’s encouraging to see a more positive trajectory. However, two years of improvement doesn’t negate the fact that the skills shortage is still too high, pointing to a deeper structural issue. Employers need to ensure they are not just thinking about the talent they need today; instead focusing on the talent they require tomorrow to future-proof their business.”

Additional key trends highlighted within the survey include:

Organisations are looking to protect their current talent rather than replace or outsource

When looking at how talent shortages are being handled, organisations recognise the importance of nurturing and protecting current talent, by prioritising upskilling and reskilling existing employees (33%).

Encouragingly, organisations are not seeing AI or automation (10%) or outsourcing externally (9%) as the way to plug the talent gap, with both these fixes appearing 10th and 12th respectively on the list of ways to solve talent shortage issues.   

Public services invest in more training than any other sector, yet hiring is still a challenge

Public sector, health and social care has the highest upskilling rate (37%), yet 77% of these frontline organisations still face talent shortages, up 4 percentage points on the global average of 73%. This suggests the crisis in public services in the UK is deep rooted, with issues covering perception, pay and growing demand.

The automotive industry has the greatest talent shortage

92% of automotive businesses in the UK report that they are finding it difficult to source talent with the skills they need. At nearly 20 percentage points higher than other industries (where the skills shortage average is 73%) and 21 percentage points above the global average, this signals a sector which is severely constrained. Engineering is the skill which is hardest to find (46%), followed by manufacturing and production (25%).

The UK’s most severe shortages are not in London or the South East

The greatest pressure on sourcing skilled talent does not correlate with the most populated and competitive labour markets. Instead, Yorkshire & Humber (15%), which is considered a less buoyant jobs market, has the greatest talent shortage.

For more information about ManpowerGroup’s 2026 Talent Shortage Survey, visit: Global Talent Shortage 2026 – UK

ENDS

Notes to Editors

Media Contact Details:

Ania Krwawicz-Sheath and Jordan Spry

Press.office@manpower.co.uk

Survey Methodology:

ManpowerGroup interviewed 39,063 employers in 41 countries: Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Colombia, Costa Rica, Czech Republic, Finland, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Israel, Italy, Japan, Mexico, Norway, Panama, Peru, Poland, Portugal, Puerto Rico, Romania, Singapore, Slovakia, Spain, Sweden, Switzerland, Taiwan, The Netherlands, Türkiye, United Arab Emirates (U.A.E.), United Kingdom (U.K.), United States of America (U.S.). The fieldwork was completed in all markets between October 1 – 31, 2025. In the UK, the survey included responses from 2,261 businesses.

About ManpowerGroup

ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organisations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organisations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills.

Our expert family of brands – Manpower, Experis, Brook Street and Talent Solutions – creates substantial value for candidates and clients across more than 75 countries and territories and has done so for over 75 years. We are recognised consistently for our diversity – as a best place to work for Women, Inclusion, Equality and Disability, and in 2025, ManpowerGroup was named one of the World’s Most Ethical Companies for the 16th year – all confirming our position as the brand of choice for in-demand talent. For more information, visit www.manpowergroup.co.uk, or follow us on LinkedIn, Instagram, YouTube and Facebook.