73% of business leaders are ill-equipped for AI transformation, new report from Kearney, Egon Zehnder reveals

• 70% of business leaders expect AI to disrupt their company in next 5 years
• 85% see AI as an organisational opportunity, 90% consider it a personal opportunity

Global consultancy Kearney, in partnership with Egon Zehnder, the leadership advisory firm, has released a report titled ‘Leadership in the Age of AI’ exploring how business leaders foresee the impact of AI on organisations and jobs, and how prepared they feel for this change.

Organisations need to get ready for change

One of the key findings of the report is that while 70% of business leaders believe their company will be disrupted by AI in the next five years, only one in five (20%) believe their organisation is currently prepared for this disruption. The rapid growth of AI is a contributing factor to this, with 73% of those surveyed believing their preparations are limited by time, people, and money. 

Moreover, more than half (51%) believe that a lack of understanding around AI among leaders contributes to the problem. On the flip side, of those who feel their organizations are prepared, 89% attribute this to their leadership team’s understanding of AI and its capabilities.

AI remains an opportunity if companies plan ahead

Promisingly, the report found that 85% of business leaders still see AI as an opportunity for their organisations, with more than 90% seeing it as an opportunity for them personally within their roles. To take advantage, business leaders are getting preparations in order:

• 49% are investing in infrastructure
• 44% are building external partnerships
• 39% are recruiting expert talent

Arjun Sethi (pic), regional head and chairman, APAC, Kearney notes: “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 organizations are reaping the benefits.”

He adds that the report has shown that the prevailing sentiment among leaders regarding 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,” Arjun said.

Meanwhile, 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.”

Find a link to the full report here