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British firms reshape workforce for AI as staff resist full return to offices

Thursday, October 15, 2026
3 min read
British firms reshape workforce for AI as staff resist full return to offices

At a glance

  • 87% of British bosses expect a return on AI investments within three years.
  • 81% of UK CEOs find AI ethical considerations very or mostly challenging.
  • 77% of companies are actively hiring AI and technology talent.
  • 21% of UK bosses report staff resistance to returning to the office.
  • 86% of British executives are confident in their company's three-year growthup from 74%.
  • Confidence in the wider UK economy has fallen from 79% to 64%, and CEOs are looking to the Budget for policy certainty.

British firms reshape workforce for AI

Top executives at UK companies say resistance to returning to the office remains a persistent challenge even as City firms redesign roles to support human-AI collaboration. KPMGs 2026 Global CEO Outlook shows AI investment is a top priority: 87 per cent of British bosses expect to see a return on that investment within three years.

At the same time, leaders are increasingly focused on the ethical implications of AI. According to the survey, 81 per cent of UK chief executives describe ethical considerations around AI as either very or mostly challenging. That concern sits alongside concrete workforce changes: most CEOs report actively redesigning roles so humans and AI can work together, and 77 per cent are recruiting new AI and technology talent to support that transition.

But the human element still matters. Chief executive of KPMG UK and Switzerland Jon Holt said human judgement must remain central to AI adoption, arguing that machines cannot replicate empathy, judgement or emotional intelligence. Holt stressed that human skills are essential as businesses understand, embed and capitalise on the opportunities AI brings.

Despite firms internal optimism about technology, workplace tensions persist. The survey found that 21 per cent of UK bosses report staff resistance to returning to the office, keeping the hybrid-working debate alive as employers balance cultural and operational priorities with new AI-driven role designs.

Outlook and policy expectations

UK executives are broadly confident about their companies near-term prospects. The country ranks third globally for CEO confidence in their firms three-year growth outlook: 86 per cent of British bosses said they were confident, up from 74 per cent the previous year. By contrast, their optimism about wider UK economic growth has cooled, with confidence in the national economy falling from 79 per cent to 64 per cent.

Holt warned that business confidence alone will not translate into jobs and investment without clearer public policy. He said the UK remains an attractive place to do business, but CEOs are awaiting the upcoming Budget for policy certainty and measures that will create the conditions for broad-based economic growth.

As firms accelerate hiring of AI and tech specialists and redesign roles around human-AI collaboration, they will also need to manage skills gaps, invest in upskilling, and navigate workplace culture tensions over office attendance. How government policy responds in the Budget may play a pivotal role in whether growing business confidence converts into sustained investment and jobs across the UK.

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