Two-thirds of companies not culturally ready for AI in 2026: UKG Survey
UKG Warns of Cultural Gaps in AI Readiness as 2026 Megatrends Unveiled
December 10, 2025 — Global workforce technology leader UKG has cautioned that most organisations remain culturally unprepared for artificial intelligence (AI) adoption, even as investment in workplace technologies accelerates. The warning came with the release of the company’s 2026 Megatrends report on Wednesday, which outlines three major shifts expected to reshape work in the year ahead.
Three Forces Redefining Work
UKG’s analysis points to:
- A people-first approach to AI – ensuring technology augments rather than alienates workers.
- Flexible talent ecosystems – blending full-time, part-time, gig, and AI-enabled roles to address labour shortages.
- A shift from engagement to enablement – moving beyond surveys and morale metrics to empower employees with autonomy, tools, and support.
The company said these forces will increasingly define how leaders respond to demographic pressures, digital transformation, and productivity challenges heading into 2026.
Leaders Urged to Anticipate, Not React
Rachel Barger, UKG’s president for go-to-market, stressed that leaders can “no longer afford to read and react” to disruption. Instead, she urged organisations to harness workforce data to anticipate change and redesign operating models at speed.
AI Ambition vs. Organisational Readiness
The report highlights a widening gap between AI ambition and cultural readiness. Research from Great Place to Work, cited by UKG, shows that two-thirds of employers lack the cultural preparedness required for AI transformation. Meanwhile, UKG’s own data reveals that only 53% of frontline employees believe their organisation is preparing them for an AI-driven workplace, underscoring a trust and communication deficit.
UKG emphasised that technology adoption alone cannot bridge this divide. Cross-functional collaboration between HR, IT, and communications teams is critical, with frontline managers expected to act as visible advocates for AI initiatives. Trust, understanding, and shared accountability, the company said, will determine whether AI delivers promised productivity gains in 2026.
Labour Market Pressures
The second trend identified in the report reflects a tightening labour market shaped by demographic shifts, declining participation rates, and widening skills gaps. Traditional hiring channels are faltering, UKG noted, pushing employers to build adaptive talent ecosystems.
Work schedules and limited career growth remain the top drivers of frontline attrition, intensifying the need for internal mobility and greater worker autonomy.
From Engagement to Enablement
UKG also signalled an ideological shift within HR. Engagement alone, long considered a measure of organisational health, is no longer sufficient. Low trust and low autonomy continue to suppress global engagement levels, with research showing that two in five employees lack decision-making authority even for routine tasks.
Instead, UKG advocates an employee enablement model that prioritises autonomy, access to tools, and personalised support. High-trust cultures, according to decades of Great Place to Work research, generate 42% more discretionary effort, even during downturns.
A Turning Point for 2026
The findings suggest that 2026 could mark a pivotal year in how organisations structure work, deploy talent, and build digital confidence among employees. UKG will explore these themes further at its upcoming HR and Payroll e-Symposium in January. For further insights into the evolving workplace paradigm, visit
- DCM Shriram Chemicals Drives Sustainability with EV Staff Bus in Gujarat - December 30, 2025
- Existing labour courts, industrial tribunals to continue till new ones formed: Govt to Delhi HC - December 11, 2025
- Average Workday in India: Nearly 10 Hours, With 6 Hours of Productive Computer Time - December 11, 2025
