The gap between AI adoption and leadership readiness is becoming one of the defining challenges facing organisations today. According to Gallup’s latest State of the Global Workforce report, only one in five employees believe their manager actively supports their team’s use of artificial intelligence, while just one in four say their organisation has communicated a clear strategy for integrating the technology into work. While investment in AI continues to accelerate, leadership capability is struggling to keep pace. Businesses are racing to adopt new technologies, but many still lack the leadership frameworks, behaviours and organisational confidence needed to turn AI into meaningful, scaled value.
AI is arriving during a period of intense organisational pressure. Leaders are simultaneously navigating economic uncertainty, shifting workforce expectations, skills shortages, particularly those needed to support new technological infrastructure, and growing demands for productivity and innovation.
While artificial promises efficiency and faster decision-making, many organisations are discovering that technology alone does not drive transformation. Research shows that 74 percent of employers still struggle to convert their investment into scaled business value. In many cases, the barrier is not the technology itself, but the absence of leadership capability needed to guide adoption effectively.
This is exposing weaknesses already within organisations. Leadership teams are being asked to drive innovation while maintaining trust, and make faster decisions without losing human judgement. Manager capability is becoming particularly important as they act as the bridge between organisational strategy and employee experience, thereby determining the impact of agentic AI adoption for employees. Yet, many feel unprepared to lead through this shift.
Without leadership readiness, organisations risk implementing artificial intelligence in ways that improve short-term efficiency while weakening long-term engagement, trust and adaptability.
What sets high-performing organisations apart
The organisations generating the most value from AI are approaching it differently. Rather than viewed purely as a cost-saving tool, they use it to strengthen employee experience by reducing administrative burden and time spent on repetitive tasks, enabling employees to focus more on work that feels meaningful and better aligned to their skills. Our research shows that highly profitable organisations are 7 percent more likely to use the tech to enhance employee experience than lower-performing peers.
Leading organisations are focusing more on redesigning rather than replacing work – involving employees in shaping adoption strategies and creating AI ambassador networks. They also recognise that trust is becoming a competitive advantage. Employees are more likely to engage positively with AI when leaders communicate transparently about how it will be used, where accountability sits and how human judgement will remain central.
The experience of certified Top Employer Chiesi, shows the value of this approach. When its Global HR Analytics and HRIS team began implementing AI tools, they focused on helping leaders listen to experts, trust their teams and apply ethical judgement before making decisions. Their success lay in fostering open collaboration and building trust between human insight and data-driven intelligence. The result is both stronger innovation and productivity, and higher levels of engagement.
Ultimately, the organisations pulling ahead are those treating AI as a leadership transformation, not simply a technology implementation.
The five pillars of AI-powered leadership
Our report identified five capabilities that define AI-powered leadership: digital confidence, human-centred design, ethical stewardship, applied empathy, and systems awareness. These pillars create a practical framework for organisations seeking to turn AI into sustainable business value.
Digital confidence is the foundation. Leaders do not need to become technical experts, but they do need enough understanding to evaluate and apply the tech responsibly. Yet only 46 percent of leaders report receiving formal training in generative AI. Organisations making progress are embedding AI fluency into leadership development through practical learning, collaboration and experimentation.
Human-centred design ensures AI strengthens the employee experience rather than eroding it. High-performing organisations are using AI not only to improve efficiency, but to enhance autonomy, collaboration and engagement. Those balancing productivity with employee experience are increasingly outperforming peers focused solely on automation.
As AI becomes more embedded into decision-making, ethical stewardship is becoming a defining measure of leadership quality. Employees want clarity around how AI is used and where accountability sits. Leaders who communicate transparently and embed fairness into governance frameworks build trust at a time of significant uncertainty.
Applied empathy is equally important. While AI can process information quickly, it cannot replace emotional connection. Effective leaders use AI to strengthen communication and understanding rather than create distance between themselves and employees. As AI increases efficiency, empathy becomes an even more important leadership differentiator.
Finally, systems awareness helps leaders understand the wider organisational impact of AI. Technological decisions create ripple effects across culture, collaboration and performance. The most effective leaders recognise that successful AI adoption is not about isolated tools, but about how technology reshapes the wider organisation.
HR’s role in preparing leaders for the era of artificial intelligence
Artificial intelligence will continue to reshape organisations, however the defining factor in successful adoption will be whether leaders are equipped to guide people through this transformation with confidence and clarity.
This is where HR plays a pivotal role. As organisations rethink leadership for the new era, HR leaders are uniquely positioned to embed the capabilities needed for long-term success. The organisations creating lasting value from AI will be those that invest in technology alongside leadership and employee experience, to ensure AI strengthens human potential rather than replaces it.
Adrian Seligman is Chief Executive Officer of Top Employers Institute, a global organisation that certifies and benchmarks people practices. He leads the organisation’s work with nearly 2,500 certified organisations across 131 countries and regions. With more than 25 years of international HR leadership experience, Adrian regularly speaks with business and HR leaders around the world on topics including leadership, employee engagement, organisational transformation and AI. Drawing on insights from organisations across multiple industries and markets, he writes and speaks about the workforce trends shaping the future of work.
July 9, 2026
Most organisations are investing in AI. Far fewer are preparing leaders for it
by Adrian Seligman • AI, Comment
AI is arriving during a period of intense organisational pressure. Leaders are simultaneously navigating economic uncertainty, shifting workforce expectations, skills shortages, particularly those needed to support new technological infrastructure, and growing demands for productivity and innovation.
While artificial promises efficiency and faster decision-making, many organisations are discovering that technology alone does not drive transformation. Research shows that 74 percent of employers still struggle to convert their investment into scaled business value. In many cases, the barrier is not the technology itself, but the absence of leadership capability needed to guide adoption effectively.
This is exposing weaknesses already within organisations. Leadership teams are being asked to drive innovation while maintaining trust, and make faster decisions without losing human judgement. Manager capability is becoming particularly important as they act as the bridge between organisational strategy and employee experience, thereby determining the impact of agentic AI adoption for employees. Yet, many feel unprepared to lead through this shift.
Without leadership readiness, organisations risk implementing artificial intelligence in ways that improve short-term efficiency while weakening long-term engagement, trust and adaptability.
What sets high-performing organisations apart
The organisations generating the most value from AI are approaching it differently. Rather than viewed purely as a cost-saving tool, they use it to strengthen employee experience by reducing administrative burden and time spent on repetitive tasks, enabling employees to focus more on work that feels meaningful and better aligned to their skills. Our research shows that highly profitable organisations are 7 percent more likely to use the tech to enhance employee experience than lower-performing peers.
Leading organisations are focusing more on redesigning rather than replacing work – involving employees in shaping adoption strategies and creating AI ambassador networks. They also recognise that trust is becoming a competitive advantage. Employees are more likely to engage positively with AI when leaders communicate transparently about how it will be used, where accountability sits and how human judgement will remain central.
The experience of certified Top Employer Chiesi, shows the value of this approach. When its Global HR Analytics and HRIS team began implementing AI tools, they focused on helping leaders listen to experts, trust their teams and apply ethical judgement before making decisions. Their success lay in fostering open collaboration and building trust between human insight and data-driven intelligence. The result is both stronger innovation and productivity, and higher levels of engagement.
Ultimately, the organisations pulling ahead are those treating AI as a leadership transformation, not simply a technology implementation.
The five pillars of AI-powered leadership
Our report identified five capabilities that define AI-powered leadership: digital confidence, human-centred design, ethical stewardship, applied empathy, and systems awareness. These pillars create a practical framework for organisations seeking to turn AI into sustainable business value.
Digital confidence is the foundation. Leaders do not need to become technical experts, but they do need enough understanding to evaluate and apply the tech responsibly. Yet only 46 percent of leaders report receiving formal training in generative AI. Organisations making progress are embedding AI fluency into leadership development through practical learning, collaboration and experimentation.
Human-centred design ensures AI strengthens the employee experience rather than eroding it. High-performing organisations are using AI not only to improve efficiency, but to enhance autonomy, collaboration and engagement. Those balancing productivity with employee experience are increasingly outperforming peers focused solely on automation.
As AI becomes more embedded into decision-making, ethical stewardship is becoming a defining measure of leadership quality. Employees want clarity around how AI is used and where accountability sits. Leaders who communicate transparently and embed fairness into governance frameworks build trust at a time of significant uncertainty.
Applied empathy is equally important. While AI can process information quickly, it cannot replace emotional connection. Effective leaders use AI to strengthen communication and understanding rather than create distance between themselves and employees. As AI increases efficiency, empathy becomes an even more important leadership differentiator.
Finally, systems awareness helps leaders understand the wider organisational impact of AI. Technological decisions create ripple effects across culture, collaboration and performance. The most effective leaders recognise that successful AI adoption is not about isolated tools, but about how technology reshapes the wider organisation.
HR’s role in preparing leaders for the era of artificial intelligence
Artificial intelligence will continue to reshape organisations, however the defining factor in successful adoption will be whether leaders are equipped to guide people through this transformation with confidence and clarity.
This is where HR plays a pivotal role. As organisations rethink leadership for the new era, HR leaders are uniquely positioned to embed the capabilities needed for long-term success. The organisations creating lasting value from AI will be those that invest in technology alongside leadership and employee experience, to ensure AI strengthens human potential rather than replaces it.
Adrian Seligman is Chief Executive Officer of Top Employers Institute, a global organisation that certifies and benchmarks people practices. He leads the organisation’s work with nearly 2,500 certified organisations across 131 countries and regions. With more than 25 years of international HR leadership experience, Adrian regularly speaks with business and HR leaders around the world on topics including leadership, employee engagement, organisational transformation and AI. Drawing on insights from organisations across multiple industries and markets, he writes and speaks about the workforce trends shaping the future of work.