Insight
Leaders believe their organizations are unprepared for the shift
So, do executives feel that they and their organizations are ready to navigate the disruptions of AI while seizing the opportunities? Of the leaders surveyed, only 21% agree and strongly agree that their organization has the necessary capabilities to deal with the expected disruption of AI in the next five years (see Figure 5). In general, executives see themselves as better prepared to deal with the disruption than their organization, but still, only 40% agree and strongly agree that they have the necessary capabilities to do so. This ties back to our findings regarding a higher expected disruption, with the understanding of leaders that this disruption would require significant resources to be handled. In turn, leaders may also feel better informed than their organizations of what’s to come.
Insight
Leaders’ understanding of AI is critical, while lack of sufficient resources is the biggest stumbling block for feeling prepared
Those leaders who believe their organization is prepared for AI-related disruption recognize the importance of leadership’s understanding of AI in driving that readiness. Nearly 90% agree that leadership’s understanding was a core reason behind their organization’s readiness. Other factors identified as contributing to readiness included cultural support of change, with 74% of respondents agreeing; and the allocation of sufficient resources including time, money, and people (70% agreed).
On the other hand, among executives who believed that their organization was unprepared, three-quarters thought that the lack of readiness stemmed from a lack of time, money, and people dedicated to building readiness for AI disruption. Leadership understanding also has a role to play: just over half of the respondents agreed that a lack of leadership understanding contributed to a lack of readiness (see Figure 6).
It is worth emphasizing that the arrival of AI comes at a time when leaders are already stretched, navigating the many challenges that organizations face today. This poly-crisis goes beyond organizational or industry boundaries—it extends to geopolitics, polarized domestic politics and rising populism, and an existential planetary crisis. If leaders can return to their values in shaping the landscape for an AI-ready economy and society, AI could solve humanity’s many crises. Implemented right, AI has the potential to be a democratizing tool, used in service of humanity, and not as a force that erodes it.
“Organizations and CEOs are not ready for AI as the full-fledged implications are not yet understood.”
Bill Anderson, Bayer AG
“There is a phase of curiosity at the beginning of technological change, and also what is being communicated around it, but then leaders need to move on to creating a visionary approach, with very tangible examples, so that people can start to understand the benefits.”
Béatrice Guillaume-Grabisch, Nestlé
“Leaders are particularly challenged to deal with the perceived loss of control in the organization.”
Marianne Janik, Microsoft
“Leaders will use Artificial Intelligence, laggards not. And of course: You will always need smart people!”
Bill Anderson, Bayer AG
“Middle management is under pressure. In the past, you were promoted for your knowledge, but there’s a new expert in town—AI—and it knows what you know and more. Connecting, engaging, and collaborating—people-centric skills—will become even more relevant than ever.”
Judith Wiese, Siemens
Executives who expect their role to be disrupted report worse preparation for expected disruption
I have the necessary capabilities in my role for the expected disruption of AI in the next 5 years (% of participants)
Note: Percentages may not total 100 due to rounding
Sources: Kearney and Egon Zehnder analysis
Figure 5
Executives who expect their organization to be disrupted report worse preparation for expected disruption
My organization has necessary capabilities for the expected disruption of AI in the next 5 years (% of participants)
Note: Percentages may not total 100 due to rounding
Sources: Kearney and Egon Zehnder analysis
Figure 5
Higher readiness is reported to be driven by leadership understanding while lack of preparedness is reported as due to insufficient resources
Executives are convinced their understanding of AI is a major driver for AI readiness (% of participants)
My organization is ready for the disruption, because:
Note: Percentages may not total 100 due to rounding
Sources: Kearney and Egon Zehnder analysis
Figure 6
Executives attribute the lack of readiness primarily to insufficient resources (% of participants)
My organization is not ready for the disruption, because:
Note: Percentages may not total 100 due to rounding
Sources: Kearney and Egon Zehnder analysis