Generative AI (Gen AI) and hyper-personalization are no longer futuristic ideas—they’re the new foundation for energized, innovative workplaces. Gen AI has the potential to automate routine tasks, tailor employee experiences, and unlock new levels of productivity. And while the potential is widely recognized, the reality on the ground tells a different story.
Lenovo’s recent Igniting Real Workplace Transformation report, the second in our Work Reborn Research Series 2025, reveals a stark gap between ambition and action. We surveyed 600 IT leaders worldwide and found that while 97% of IT leaders recognize the need for digital workplace transformation, more than 60% admit they haven’t started.
While IT Leaders (80%) recognize Gen AI’s power to maximize productivity, optimize costs and streamline IT support, many face challenges with transforming their workplace to use Gen AI effectively. Workplace transformation is essential to realizing the full potential of AI but, too often, transformation is stalled. Our report reveals why most organizations are falling behind and, importantly, what it will take for IT professionals to harness the full potential of Gen AI.
Three Barriers Hindering Progress
We found three key barriers are preventing organizations from turning digital workplace transformation into a reality. The first, and arguably most critical, is a lack of clear vision of how transformation links to strategic goals—with more than half (55%) of IT leaders saying it is one of their top challenges. Too often organizations chase transformation trends without defining what success looks like for them, which results in unclear goals and stalled initiatives.
A strong digital strategy must start with a vision that is rooted in both the business needs and the employee experience. Rather than copying what other businesses are doing, organizations should examine their unique goals, culture and workforce dynamics. Transformation should reflect a clear set of objectives, balancing short-term wins with long-term value, and align fully with the organization’s broader mission.
The second barrier is competing IT priorities. According to the report, 44% of IT leaders rank this among their top three challenges. From cybersecurity and sustainability to infrastructure upgrades and Gen AI itself, digital transformation is often viewed as just one more item on an already-crowded agenda. But this is a misconception. Transformation is not a competing priority—it’s the foundation that enables all the others.
According to Lenovo’s CIO Playbook 2025[i] 42% of AI investments in the coming year will be directed toward Gen AI. But to realize that value, transformation can’t be sidelined, it must be foundational. Digital workplace transformation isn’t a separate initiative. It’s what enables personalized device configurations, smarter applications and automated IT support that truly unlock Gen AI’s potential.
Organizations that prioritize transformation will be best positioned to lead in AI adoption and workplace innovation. Only by having a clear vision and plan that connects transformation to AI, security and sustainability goals will IT leaders turn competing priorities into a unified strategy for progress.
The third major barrier is the fact 44% of IT leaders don’t know how to execute their digital workplace transformation. Many are overwhelmed by the scale, commitment and potential risks involved in digital transformation. However, to turn transformation into reality these issues must be addressed. Additionally, while transformation is a major undertaking, complexity doesn’t have to stall progress.
Key Considerations to Make Transformation a Success
In my view, digital workplace transformation isn’t a one-off tech project—it’s a cross-functional initiative that must bring together people, processes and platforms. Here are some of the key areas leaders need to consider:
1. Organizational buy-in – Success depends on the support and input from functions across the business, including HR, finance and more. Engaging peers in these departments from the start is essential.
2. Technology integration – Transformation often requires a transition from legacy systems to more agile, hybrid cloud-based platforms. That can create complexity, risk and disruption—which digital solutions can help with.
3. Change management – Employees often resist change because of a lack of knowledge and concerns over job security. Reassure them with a change management framework. It can keep them informed and smooth the transition to new technology and processes.
4. Skills and training – Digital workplace transformation requires new skills, both for frontline workers and the IT team. This means that any plan must incorporate a robust training program.
True transformation takes more than new tools. It requires a joined-up strategy, clear vision and the alignment of people, platforms and priorities. From leadership to frontline workers, every part of the business must be involved.
By addressing skills gaps, managing infrastructure evolution, and focusing on organisational alignment, IT leaders can move beyond aspiration—and create a workplace where Gen AI delivers real value. The organisations that get this right won’t just keep up. They’ll lead.
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