AI advantage gap emerges as leaders reap benefits while staff lag behind
New research from Employment Hero highlights a widening gap in AI use between leaders and junior staff, with poor implementation linked to productivity loss. Smaller firms are most at risk, prompting calls for more inclusive, skills-focused AI adoption strategies.
A new report from Employment Hero has revealed a widening divide in AI adoption across the UK workforce, with senior leaders significantly more likely to benefit from the technology than junior employees, a trend linked to declining productivity and uneven digital capability across organisations.
The Work that Works study found that 73% of senior managers now use AI tools at least monthly, compared with just 32% of entry-level employees. Contrary to widespread assumptions, millennials, not Gen Z, are the most frequent users, with younger workers reportedly lacking access, support or role-relevant use cases.
The findings point to an emerging ‘AI advantage gap’, with adoption concentrated at the top. While over half of UK business leaders attribute productivity gains to AI, the report also shows that poor or inconsistent rollout is harming performance. Employees who feel excluded from AI initiatives report a 50% fall in productivity, and firms with low levels of implementation see similar declines.
Smaller businesses are at higher risk. Companies with fewer than 50 staff are half as likely to have adopted AI and are 28% less likely to invest in technology overall. Many describe operating in ‘survival mode’ with limited capacity for structured digital upskilling.
Kevin Fitzgerald, UK managing director at Employment Hero, said AI’s benefits are being unevenly distributed: ‘AI is only delivering productivity gains for some and that’s a huge problem. For technology to drive meaningful change, it needs to be in the hands of everyone.’
He called for a ‘human-centred approach to AI adoption’ that prioritises training and support alongside access: ‘Closing the AI advantage gap is essential not just for individual businesses but for UK productivity at large.’
The research also challenges the notion that AI is a shortcut or threat to jobs. Among regular users, 40% say they feel less overwhelmed and 38% report improved quality of work.