Closing the AI Gap: Build AI-Fluency to Tackle Skill Shortages
AI literacy is now an imperative for UK leaders—see what CEOS and CHROs can do to close the gap and promote AI fluency.
December 22, 2025
Why AI Literacy Is Now a Leadership Imperative
Can a leader really steer a business into the AI era without understanding the basics of the technology itself? The UK’s AI adoption curve suggests not. From financial services to healthcare, AI applications are moving from experimentation to everyday use. Yet the reality is sobering: the digital skills gap is widening, with nearly half of UK firms reporting difficulties filling AI-related roles.
AI literacy is no longer a ‘nice-to-have’ for UK leaders—it’s fast becoming a strategic imperative. With talent shortages mounting and AI adoption accelerating, CEOs and CHROs must lead the charge in embedding AI fluency across their organisations, ensuring the workforce is equipped to thrive in an AI-driven economy.
For CEOs, this means that AI literacy is no longer confined to technical teams—it is a boardroom priority. Leaders who understand the fundamentals of AI are better positioned to evaluate investments, manage risk, and make evidence-based strategic decisions. Without this fluency, UK organisations risk being outpaced by more technologically confident competitors.
This applies equally to the C-suite. Leadership confidence in AI can set the tone for the entire organisation, creating momentum for adoption and embedding trust in digital initiatives.
From Strategy to People: CHROs as AI Enablers
What does AI literacy look like in practice? It’s not about turning every executive into a data scientist. Instead, it’s about building confidence in using AI tools, understanding their limitations, and embedding ethical considerations in every decision.
Here, the CHRO’s role is critical. UK CHROs are already balancing compliance with new employment laws, post-Brexit talent constraints, and employee expectations for flexible work. Adding AI to the agenda can feel daunting, but it is also a powerful lever for workforce resilience.
Practical steps for CHROs include:
- Embedding AI in leadership development programmes: equipping senior teams with the skills to interpret AI insights and apply them responsibly.
- Fostering cross-functional learning: partnering with CIOs and CFOs to integrate people and technology strategies.
- Creating pathways for inclusive AI upskilling: ensuring access across all levels, not just tech-facing roles, to build confidence and reduce resistance.
These interventions aren’t about technology alone, they’re about enabling people to adapt, innovate, and grow with the business.
Building a Culture of Ethical and Confident AI Adoption
AI literacy isn’t just about technical knowledge, it’s about shaping the culture that surrounds it. Without transparency and ethical safeguards, AI initiatives often stall. In fact, surveys show that fewer than one in five UK employees currently believe AI will improve their productivity. That gap between leadership ambition and workforce trust is a clear warning sign.
UK CEOs and CHROs have the opportunity to bridge that divide. By openly addressing concerns around data privacy, algorithmic bias, and job security, leaders can build trust and resilience. A culture of ethical AI adoption doesn’t just ease fears—it strengthens the organisation’s ability to attract top talent. Skilled workers increasingly want to join companies that use technology responsibly and demonstrate a future-ready vision.
As one Korn Ferry insight highlights, firms that align people strategy and technology strategy gain a “clear competitive advantage”. That advantage is not just about productivity; it is about reputation, innovation, and retention.
“AI fluency & confidence isn’t optional anymore—it’s the new performance advantage. The latest research shows that leaders who build AI-ready people, not just AI systems, unlock stronger performance,” says Jerry Collier, Solution Leader, EMEA Assessment & Succession practice.
Connecting AI Fluency to Talent Retention
Talent shortages are not going away. In fact, they’re intensifying. Over 40% of UK employers report persistent hard-to-fill vacancies. Many of these gaps are in digital and AI-enabled roles. For leaders, the message is clear; embedding AI literacy into the organisation is not just about efficiency, it’s a direct response to the talent crisis.
By investing in AI upskilling, CEOs and CHROs send a strong signal to employees: we are building for the future, and you are part of it. This commitment not only reduces attrition but strengthens employer brand, positioning the organisation as a destination for top talent in a fiercely competitive market.
With Korn Ferry’s support, a global telecommunications leader reduced employee turnover by one-third between FY23 and FY25.
Through targeted learning and development initiatives and robust people analytics, the organisation strengthened talent retention and built a more engaged, future-ready workforce.
“Humans—not AI tech—is the decisive lever. Organizations that invest in talent development & change leadership will unlock sustained performance gains.” says Collier.
A forward-thinking approach to AI fluency also ties directly into leadership credibility. As one Korn Ferry perspective emphasises, resilience and adaptability will define the organisations of tomorrow. AI fluency is part of that adaptability. Leaders who demonstrate confidence in AI are seen as visionary, pragmatic, and trustworthy - all qualities that drive employee engagement and loyalty.
Leading the UK Workforce Into the AI Era
Closing the AI gap is not a one-off training exercise. It’s an ongoing journey that combines strategic vision, people development, and cultural transformation.
- For CEOs, the task is to champion AI literacy from the top—embedding it into decision-making and strategic planning.
- For CHROs, it is about operationalising that vision—building inclusive training programmes, reducing fear, and embedding ethical standards.
Together, these leaders can foster a workforce that is not only digitally capable but confident, curious, and committed. That combination is what will allow UK organisations to overcome skill shortages and lead in the AI era.
To discover how Korn Ferry can help your organisation build AI fluency at every level—equipping leaders and employees alike to thrive in an AI-driven future, visit our Leadership and Professional Development solutions page.
Related insights
