Kyndryl Readiness Report: AI Delivers Early Returns, Pushing Enterprises to a Tipping Point

Rhea-AI Summary

Kyndryl (NYSE: KD) released its 2025 Readiness Report based on responses from 3,700 senior leaders across 21 countries, finding rising AI ROI but persistent readiness gaps. 54% report positive returns from AI (up 12 points vs 2024) while 62% remain at pilot stage. 90% say tools/processes can scale innovation, but >50% cite their tech stack as a barrier and only 29% say workforce is ready for AI.

Other findings: AI spending rose 33% year-over-year; cybersecurity is the top AI use case; 75% cite geopolitical cloud risks and 65% changed cloud strategy.

Positive

• 54% of organizations report positive AI ROI
• AI spending increased 33% year-over-year
• 68% investing heavily in at least one form of AI
• Pacesetters show 20-point lower cyber outage rate

Negative

• 62% of AI projects remain in pilot stage
• Only 29% of workforces feel ready for AI
• >50% report foundational tech stack blocks innovation
• 75% express geopolitical risks in global cloud use

Businesses report AI momentum – but foundational gaps in tech and talent now define the next phase of progress

NEW YORK, Oct. 20, 2025 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise services, today 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 modernize 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 organizations 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:

• ROI on the rise, but AI stuck in experimentation phase: While 54% of organizations reported seeing positive returns on AI investments – an increase of 12 points from 2024 – 62% still haven't advanced their AI projects beyond the pilot stage.
• Confidence continues to outweigh capability: While 90% say their tools and processes allow them to rapidly test and scale new ideas, more than half say their foundational technology stack holds back innovation.
• AI driving workforce transformation, but skills gaps remain: 87% say AI will "completely" transform jobs at their organizations within 12 months, even though many say their employees are not using AI frequently today and few have the technical skills necessary.
• Geopolitical pressures forcing a data pivot: While reporting clear benefits from cloud adoption, organizations are now reevaluating where and how their data is stored, processed, accessed and secured amid an increasingly fragmented regulatory landscape. Businesses are also balancing legacy infrastructure challenges, with 70% of CEOs saying they reached their cloud setup "by accident rather than design."

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 organizations 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

As leaders look to scale innovation, people readiness is emerging as a key barrier – and a key opportunity. While nearly 9 in 10 believe AI will completely reshape jobs in the next year, only 29% feel their workforce is ready to successfully leverage the technology and concerns remain around the skills needed to succeed in this era. Many organizations are also battling cultural barriers – with nearly half of CEOs reporting their organization stifles innovation (48%) and moves too slowly in decision-making (45%). Those pulling ahead – dubbed "Pacesetters" in the report – aren't just investing in innovation. They're uniquely prioritizing culture, upskilling and leadership alignment.

Compared to organizations who are lagging in these areas, Pacesetters are:

• 32 points less likely to cite their tech stack as a barrier
• 30 points more likely to say their cloud can adapt to new regulations
• 20 points less likely to report a cyber-related outage in the past year

To read the report, visit Kyndryl's Readiness Report.

Methodology

The 2025 Kyndryl Readiness Report combines survey data from 3,700 senior leaders and decision-makers across 21 countries with insights from Kyndryl Bridge, the company's AI-powered, open integration digital business platform. The Report uncovers the drivers, barriers and trade-offs that can make or break the ability of organizations to protect, sustain and accelerate their performance and future-proof their mission-critical processes.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl press contact
press@kyndryl.com

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SOURCE Kyndryl

FAQ

What did Kyndryl's Oct 20, 2025 Readiness Report find about AI returns for KD investors?

The report found 54% of organizations saw positive AI returns, a 12-point increase from 2024.

How widespread is AI adoption according to Kyndryl's 2025 report and what does it mean for KD shareholders?

68% of leaders say they're investing heavily in at least one form of AI, while 62% of projects remain pilots, indicating adoption but limited scale.

What workforce risks did Kyndryl highlight in the Oct 20, 2025 Readiness Report (KD)?

Only 29% of organizations feel their workforce is ready for AI, and 87% expect jobs to transform within 12 months.

How are cloud strategies shifting in Kyndryl's 2025 Readiness Report and why should KD investors care?

75% of leaders cited geopolitical cloud risks and 65% adjusted cloud strategies, signaling demand for hybrid/private cloud solutions.

Which AI use case did Kyndryl identify as top priority in the Oct 20, 2025 report?

Leaders identified cybersecurity as the top AI use case across industries.