73% business leaders unprepared for upcoming AI transformation: Study

The influence of AI has permeated nearly every industry and sector, with the transformation occurring at such a rapid pace that individuals, particularly business leaders are finding it challenging to keep up. 

In collaboration with Egon Zehnder, the leadership advisory firm, global consultancy Kearney published a report titled 'Leadership in the Age of AI,' delving into business leaders' perspectives on the impact of AI on organisations and jobs, as well as their readiness for this transformative change.

Organisations need to get ready for change including: 

• 70 per cent of business leaders anticipate AI disruption within the next five years.
• Only 20 per cent believe their organisations are currently prepared for this disruption.
• Rapid AI growth is a factor, with 73 per cent citing limitations in time, people, and money for preparations.
• 51 per cent believe a lack of understanding around AI from leaders contributes to the unpreparedness.
• Among those feeling prepared, 89 per cent credit their leadership team's understanding of AI and its capabilities.

AI remains an opportunity if companies plan ahead:

The report reveals that 85 per cent of business leaders consider AI an opportunity for their organisations, and over 90 per cent see it as a personal opportunity in their roles. To capitalise on this, business leaders are making preparations:

• 49 per cent are investing in infrastructure.
• 44 per cent are establishing external partnerships.
• 39 per cent are actively recruiting expert talent.

“As AI continues to transform companies in the region, leaders can help their teams embrace the change and challenges that AI brings, and make sure their organisations are reaping the benefits,” noted Arjun Sethi, Regional Head and Chairman, APAC, Kearney. 

“The report has shown that the prevailing sentiment among leaders when it comes to AI is optimism. The challenge now lies in translating this optimism into tangible action. Keeping pace with AI through personal learning and continuous exploration are pivotal steps for leaders to not only embrace this transformative technology but also ensure sustained success in an ever-evolving landscape,” he added. 

As new AI-enabled technologies reshape organisations rapidly, leadership becomes pivotal in understanding AI's impact and steering the organisation accordingly. Burcu Bicakci, partner at Egon Zehnder who leads T&C and AI in Southeast Asia, said, “Organisations are likely to change drastically with new AI-enabled technologies—and soon. The report underscores the critical role of leadership in comprehending the impact of AI on their business and steering their organisation accordingly. Although the pace of AI adoption has accelerated, it is never too late for leaders to devise a clear AI strategy that can guide their organisation through this transformative phase and keep them ahead of the curve.”