Only 1 in 5 (20 percent) believe their organization is currently prepared for Artificial Intelligence (AI) transformation, according to ‘Leadership in the Age of AI’ by Kearney, in partnership with Egon Zehnder.
Ready for change
Around 70% of business leaders believe AI will disrupt their organisation in the next five years. However, only 20% are currently prepared for transformation due to several factors such as limitations of time, people, and money (73%) and lack of understanding around AI from leaders (51%).
Around 89% of those who feel their organisations are ready for AI transformation are due to their leadership team’s understanding of AI and its capabilities.
“The report underscores the critical role of leadership in comprehending the impact of AI on their business and steering their organization 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 organization through this transformative phase and keep them ahead of the curve,” Burcu Bicakci, partner at Egon Zehnder and the leader at T&C and AI in Southeast Asia, comments.
AI optimism
The report revealed that 85% of business leaders consider AI an opportunity. Business leaders are preparing by investing in infrastructure (49%), building external partnerships(44%), and recruiting expert talent (39%).
“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,” Arjun Sethi, regional head and chairman of APAC, at Kearney.
