Learnovate survey warns firms risk losing competitiveness as most fail to plan beyond short-term needs.
Budget constraints have emerged as the biggest obstacle to closing skills gaps, with nearly half of organisations taking no action beyond short-term fixes, according to new research from the Learnovate Centre.
The Learning Signals Survey 2025, which gathered responses from more than 140 learning professionals and technology developers, found that 47% of organisations have no long-term strategy for skills development.
“The risks of not taking action to keep up with new technologies far outweigh the alternative”
Limited budgets were cited as the primary barrier, with 52% of respondents identifying financial and resource constraints as their greatest challenge — up sharply from 30% in 2024 and 24% in 2023.
Long-term skills strategies needed
Nessa McEniff, managing director of Learnovate, warned that companies failing to invest in workforce development risk being overtaken by competitors.
“Constraints on budgets, time and other resources are preventing organisations from addressing their skills challenges beyond the short term,” she said. “While this is a real concern, it should not be a blocker to continued development of staff. The risks of not taking action to keep up with new technologies far outweigh the alternative.”
The survey highlights growing pressure on organisations to build capabilities in artificial intelligence and data literacy. Two-thirds of respondents identified these as the most pressing skills gaps, alongside learning agility and leadership for change management.
Despite this, AI adoption in learning remains cautious. While 23% of organisations are actively deploying AI in their learning solutions, 18% have taken no steps at all. Almost a third are running pilots or trials without plans to scale, and 8% admitted they have no concrete plans due to scepticism about the technology.
Learnovate also flagged a disconnect between expectations and investment. Although 39% of respondents believe adaptive or personalised learning will have the greatest impact over the next five years, only 31% are prioritising it in their strategies.
Other findings point to shifting learner priorities. Seventy-four % of organisations said content relevance is now the primary motivator for engagement, up from 54% in 2024. Effective digital communication skills were cited as critical by more than half of respondents, reflecting the demands of hybrid work and online collaboration.
McEniff urged organisations to rethink their approach.
“Those without capital to invest could consider cultural and structural changes to facilitate learning without disrupting operations,” she said. “In this era of rapid technological change, continual learning and development is essential to maintaining competitiveness.”
Top image: Learnovate Centre managing director Nessa McEniff
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