The integration of AI into businesses is happening at pace, but leadership is often playing catch up. There’s currently a stark divide between the tech community, with its advanced, confident narrative on AI, and the more tentative or bigger picture commentary of generalist leaders who are balancing broader priorities.
For the latter, AI often still exists as a separate or additional consideration to their already long ‘to-do’ list – and the challenge now is for these leaders to shift their thinking to fully embrace AI in its many forms so they can properly embed it within their organisations in a way that makes complete sense.
Leading in the AI age is a new challenge and one that will also require new skills in the boardroom. Many businesses have so far been slow to adopt AI in any meaningful way – only around one in six are using this new technology, although this number is higher (68% using AI) for large organisations.
Perhaps AI adoption simply hasn’t been on the agenda early enough, or perhaps leaders have been hesitant to investigate how they might change their entire business model and ways of working to take advantage of AI benefits?
Leaders everywhere are now thinking hard about the implications of AI on their own sectors, and the pressure is on. Whatever the reason for slower uptake of AI in business, it’s now becoming clear to most that AI must be incorporated in some form or companies risk being outpaced by future developments and agile competitors.
What leaders need to understand about AI
At the crux of the matter is a necessity for leaders to view AI as a holistic tool which is the responsibility of every department. It’s not just something for specialist digital teams to disseminate; rather leaders must plan now, in a more strategic way, to accommodate AI capability, even if it means redesigning business models to integrate it well.
However, AI is not without complexities and dilemmas. It will have an impact on everything, from compliance and governance, to people management. There are major and well-articulated considerations about the degree to which we can place trust in the veracity of AI, so with it comes an obligation to develop responsible governance arrangements that go far enough in addressing intricate data security issues and tackle huge questions around morality and ethics.
All of this means that leaders need to invest time in understanding the core of AI and how it will change the way we work, and already is, at a fundamental level. We need to be clear on what data AI solutions are drawing from and how data is being used.
As one leader recently said: “the area of most concern is the ethical use of AI – just because we can, does not mean that we should use AI in certain ways.”
What leaders need to do today to approach AI integration properly
Now is the time to take steps towards understanding AI and its integration – don’t wait. Leaders need work to work together to understand the benefits and limitations of these new technologies, to set clear red lines and ensure robust governance and oversight. There are three messages.
1. Don’t wait. Now is the time for debate, discussion and decision about the frameworks that will need to be in place to guide safe implementation of AI in organisations. Legislation is growing in this area and in the UK, the Government is insisting on boards including the right level of digital capability. Leaders need to take steps now to prepare for stronger data governance, beyond the tech know-how, and to identify the skills and qualities that are likely to be needed in an AI future and begin to include and cultivate more of them.
2. Think long-term. Much of the excitement around AI relates to opportunities to consign repetitive and menial tasks to automation; but leaders need to go much further in 2025 to think longer-term about the impact of new ways of working. This will mean building into new strategies scope for introducing AI on a grander scale, and potentially rethinking workplace cultures altogether. All of this needs to be considered within a clearly defined ethical framework, with risks identified and red lines firmly in place.
3. Focus on collaboration. No-one is really an expert yet – this technology simply hasn’t been around long enough. But many leaders feel they don’t understand enough about it or they just aren’t ready to address the subject. Building community and collaboration across leadership communities will ensure support is on hand.
How leadership skills need to evolve to empower true AI integration
There has never been a blueprint for good leadership and what makes a good leader is in a constant state of evolution. Most people who have been running businesses will be well used to learning new skills. What’s interesting about AI skills is that practically all leaders are learning them at the same time, and across all sectors.
In my role as a search consultant, I work with boards and CEOs to find leaders with the right skills and qualities to take organisations forward in complicated times. The qualities I’m asked by my clients to look for today are shifting. It’s not really possible to find a rounded organisational leader with deep experience of AI integration because the field is still so new; people who understand it best are functional specialists. Instead, it’s about spotting the attributes that tell me a leader has the ability to develop an astute understanding of AI, and the confidence to pursue it in the context of their organisation or work.
Here are five attributes that all leaders should be looking to develop in the AI age.
1. You’ll need enough high-level digital understanding and skill to reimagine how work could be done, and to visualise the possible impact of AI options as they continue to emerge.
2. You will probably take a global perspective and develop a keen interest in, and understanding of, the ‘interconnected’. Having a thorough general knowledge and being able to understand and triangulate what is going on globally may be increasingly important.
3. You will have the ability to create and retain flexible businesses that can constantly evolve with the times, without needing to be totally dismantled or re-built.
4. A strong focus on accountability, transparency and ethics, including data security, is going to be a major requirement. You will understand the role of governance in addressing the risks that are inevitably introduced by some technologies, and in overall accountability.
5. Last but not least, people at the forefront of the AI debate, and who are most engaged and excited by it, by and large present with curiosity, open-mindedness and flexible thinking, wherever they work in the organisation.
Leadership in the AI age will have to change as organisations either choose or are ultimately forced to accommodate emerging technologies. The leaders of tomorrow will be people who invest in new skills to complement their existing experience; boards will be actively looking for candidates with a practical understanding of AI from a strategy and oversight perspective, and who can use wisdom and judgement to weight up benefits and risks.
In truth, our roles as leaders will not change fundamentally: we’re just starting to operate businesses differently and this means taking a step back and being bold in reimagining the way we work. AI is already game-changing and what matters now is the ability of businesses and the people leading and shaping them to adapt and embrace it.
Juliet Taylor is an executive search consultant working with organisations and businesses to find the best leadership talent to drive their operations forward.
