Three-fifths of C-suite executives in the US currently leveraging Generative AI are actively seeking roles in organisations that demonstrate more advanced AI adoption, according to a late 2024 survey.
This trend underscores the transformative impact of Generative AI on leadership expectations, where forward-thinking leaders perceive advanced AI integration as a catalyst for innovation and strategic advantage. Those ahead of the curve recognise that the gap between AI adopters and laggards is widening and with it, the risk of Executive profile irrelevance.
GenAI is transforming how organisations operate, including automating routine tasks, driving strategic decisions and innovation, sharpening customer insights, lowering costs and enabling highly personalised services.
According to McKinsey’s 2024 Global Survey, nearly 70% of businesses now use at least one GenAI tool, with 40% planning significant investment increases. In the UK, the House of Lords has urged targeted AI upskilling for leaders. Meanwhile, US boards are already demanding AI literacy as a core competency, while countries like Singapore, China, and South Korea are outpacing much of the West in AI infrastructure investment and policy development.
Despite the momentum, an EY survey found that only 27% of UK executives feel confident navigating AI transformation. Many admit they’re uncertain how AI will impact their roles, teams, or business models. This, coupled with the rapid pace of technological advancements and concerns about workforce displacement, can lead to heightened anxiety amongst some, hesitancy, and even active resistance.
At the same time, global contrasts are becoming more pronounced. While some regions and sectors, particularly in Asia, demonstrate a greater appetite for innovation and calculated risk, others are proceeding more cautiously. China and South Korea, for instance, are making significant investments in AI infrastructure and policy frameworks, aiming to secure leadership positions in the next wave of technological progress.
In contrast, the UK and EU are working to strike a balance between regulating AI responsibly and pushing forward to maintain competitiveness. This dual focus on ethics and innovation reflects a broader strategic challenge: advancing quickly enough to realise AI’s full potential while building the necessary trust, capability, and governance mechanisms.
For executives, this is not simply a precarious balancing act but a pivotal leadership moment: an inflection point that calls for clarity, agility, and collaboration across disciplines and borders.
Drawing from the Rialto team’s experience with executives across global regions, several capabilities consistently emerge as critical for leading in this dynamic age of GenAI. Embracing these capabilities can empower executives to harness Generative AI’s full potential, transforming challenges into opportunities for growth and innovation.
Technological Fluency: Executives need not be technologists nor need to code, but they must possess a clear understanding of AI’s capabilities and limitations, to be able to ask smart questions, distinguish hype from substance and align solutions to strategic goals. Equally important is the ability to manage expectations as AI initiatives can require extended timeframes for ROI and organisational integration. Continuous learning is essential.
To stay ahead, many leaders are joining executive groups like the Rialto AI Business Circle to share insights and stay current on emerging trends
Ethical Foresight and Governance: With increasing regulatory scrutiny and stakeholder concerns, leaders need a visible, principled stance on AI’s responsible use. This includes addressing algorithmic bias, safeguarding data privacy, protecting intellectual property and mitigating environmental impact. In fact, 76% of business leaders now anticipate significant cultural and ethical shifts driven by AI that will require proactive management.
One route for influencing and gaining insight in this area is through membership in the UK Government’s All-Party Parliamentary Group on Artificial Intelligence, which allows business leaders to help shape policy and safeguard standards.
Human-AI Collaboration Design: Effective leadership involves integrating AI in ways that complement, rather than replace, human expertise. Leaders must understand where human judgment remains indispensable and craft workflows that enhance rather than diminish it.
Internal resistance remains a challenge. Two thirds of C-suite leaders admit cultural tension risks harming AI rollouts while 42% said they were “tearing their organisations apart”. Concerns about job security and societal impact remain prevalent. Companies must invest in resilience and cybersecurity, while leaders have a critical role in addressing employee concerns through open dialogue and collaborative planning.
Strategic AI Investment: With finite resources, executive teams must prioritise AI investments that align with core business objectives, balancing immediate efficiencies with long-term capability building. This demands a level of digital and GenAI fluency across all senior leaders. A well-calibrated AI investment strategy may allocate 60% to enhancing current operations, 30% to adjacent innovations, and 10% to exploratory or disruptive initiatives. Avoiding “tech for tech’s sake” is imperative.
Change Management Mastery: GenAI isn’t a plug-and-play fix, it represents a fundamental cultural shift. Effective transformation requires compelling communication, room for experimentation and the empowerment of internal champions. Celebrating early successes builds momentum and trust. Equally, leaders must create psychologically safe environments that support learning, innovation, and adaptive thinking in the face of change.
Cross-Functional Collaboration: With 71% of executives acknowledging that AI remains siloed in many organisations, integration is a clear priority. Leaders must break down traditional barriers between technology, operations and strategy by fostering AI-focused cross-functional teams, aligning KPIs and enabling secure but open access to shared data. In this era, AI transformation must be a seen as a team sport, a collaborative endeavour driven by shared purpose and organisational coherence.
Over the next five years, Generative AI will continue to mature and with it, the demands and expectations placed on executive leadership will evolve significantly.
Rialto predictions and expectations include:
Regulation Will Get More Serious: The UK may diverge from EU regulation post-Brexit, seeking innovation-friendly policies while maintaining ethical standards. Meanwhile, the US and leading Asian economies are advancing their regulatory approaches more quickly. Executives will need to remain informed, agile, and engaged, shaping policy through industry bodies, public discourse and cross-sector collaboration.
Democratised AI Development: No-code and low-code platforms will enable non-technical teams to build their own AI solutions independently. Leadership will shift away from acting as a gatekeeper and towards becoming a governance steward, ensuring that innovation thrives within strategic, ethical, and security parameters.
Decision Support Systems Will Become the Norm: Executives will increasingly rely on AI-generated insights to model scenarios, assess risks and guide decisions. But human judgment will remain crucial, particularly in areas requiring ethical nuance, stakeholder empathy or complex interpersonal dynamics.
Leadership Styles Will Change: Traditional hierarchical models are giving way to systems thinking and collaborative leadership. The GenAI-ready executive must be a learning leader, comfortable with ambiguity and skilled in facilitating diverse perspectives.
AI as a Team Member: Executives will lead hybrid teams in which AI tools aren’t just assistants but creative collaborators. This will alter how teams are formed, how success is measured and how value is co-created.
Coaching and Feedback Wil Become Increasingly Vital: Expect AI-powered leadership coaching, real-time behavioural analysis and personalised learning paths. Leaders who cultivate self-awareness and value space for reflection, not just technical knowledge, will rise above and stand out.
Authenticity Will Matter More Than Ever: In a world of synthetic content and automated interactions, human presence and integrity will become premium leadership qualities. Both customers and employees will increasingly seek transparency, integrity, and empathy from those at the top.
Board AI Literacy Will Become a Requirement: By 2030, AI fluency is likely to be mandated for directors in regulated sectors and widely expected across others. Progressive leaders are already preparing for this shift, embedding AI knowledge at board level today.
GenAI is more than a technology trend, it represents a strategic and cultural reset. The most successful executives will approach it with vision, humility and a willingness to reinvent. They will view AI not as a threat to manage but as a partner in rethinking how value is created and sustained.
By developing fluency, leading ethically, designing for collaboration and continuously adapting and upskilling, leaders can future-proof not only their careers but also the organisations they serve in a world being redefined by intelligence, both artificial and human.
A limited number of spaces are now open for senior leaders to join the Rialto AI Business Leaders Circle. This cross-sector initiative connects business, policy and technology leaders to shape the UK’s AI future.
To explore membership options, schedule a call with Rialto director Richard Chiumento, an APPG AI Permanent Advisory Board Member here.
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