In light of the emergence and development of Artificial Intelligence (AI), some business leaders see the technology as an opportunity for growth, while others feel unprepared for the transformation. Global consultancy Kearney, in collaboration with consulting firm, Egon Zehnder, has released an insightful report titled ‘Leadership in the Age of AI’. The report delves into the perspectives of business leaders regarding the impact of AI on organizations and jobs, shedding light on their preparedness for this transformative change.
Few feel prepared
A striking revelation from the report indicates that 70 percent of business leaders anticipate AI-driven disruptions within the next five years. Meanwhile, only 20 percent believe their organizations are currently equipped to handle this change. The main reason business leaders don’t feel prepared for the AI transformation is the technology’s rapid growth. Hence, 73 percent of the participants cited limitations in time, personnel, and financial resources as hindrances to their preparations.
Lack of awareness and resources
More than half (51 percent) of surveyed leaders believe that a fundamental lack of understanding of AI among leadership is hindering the adoption of the technology. The report highlights the need for leaders to bridge this knowledge gap to navigate the complexities of AI integration successfully.
On the other hand, a staggering 89 percent of those who feel their organizations are prepared attributed this readiness to their leadership team’s understanding of AI and its capabilities. This underscores the pivotal role leaders play in steering their teams through the transformative AI landscape.
AI is an opportunity
Despite the disruptions, a reassuring 85 percent of business leaders still perceive AI as an opportunity for their organizations. Moreover, more than 90 percent recognize AI’s potential for personal growth within their roles. The report also unveils strategic initiatives that leaders have adopted to harness AI opportunities. This includes infrastructure investments (49 percent), external partnerships (44 percent), and the recruitment of expert talent (39 percent).
Mirko Warschun, partner at Kearney, emphasizes the need for leaders to use their positions to help teams embrace AI-driven changes. The report also underscores the importance of strong leadership in ensuring organizations not only adapt but thrive amidst AI disruptions.
Read: Davos 2024: World Economic Forum highlights rise of AI
Crafting clear strategies
It is a widespread idea that AI is a disruptive force for businesses. However, “it is surprising that business leaders still feel that their organizations are unprepared for the changes to come,” stated Alex Liu, managing partner and chairman at Kearney.
He calls for translating optimism into tangible action and strategies. Moreover, he urges leaders to prepare themselves and their teams for the challenges and opportunities that AI presents.
For his part, Burcu Bicakci, partner at Egon Zehnder, emphasizes the pivotal role of leadership in comprehending and navigating the impact of AI on businesses. The report serves as a call to action, highlighting that, despite the accelerated pace of AI adoption, it is never too late for leaders to devise clear AI strategies to guide their organizations through this transformative phase.
As businesses stand at the brink of AI-driven disruptions, the Kearney report underscores the urgency for leaders to champion informed strategies, ensuring their organizations thrive in the age of AI.
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