The AI revolution has arrived. Nearly every executive recognises that artificial intelligence will disrupt their industry, but boardroom confidence and organisational readiness are not in tandem.
49% of tech leaders believe AI is already fully integrated into their business strategy[1]
However, whilst 78% of leaders believe they have AI ‘onside’, only 39% of their employees agree.[2] The challenge of AI adoption is not primarily technical – it is leadership.
As organisations race to harness AI’s potential, the demand for leaders who can guide this transformation expands.
There’s a problem. The qualities that define an AI-ready leader extend far beyond technical prowess. The executives who will thrive are those who combine strategic vision, ethical judgment and the deeply human skills required to lead teams through profound change.
For boards and search committees, the question is not whether candidates understand machine learning algorithms, but whether they possess the mindset to ask better questions about AI’s role in the business. And also, where are such candidates to be found?
The Human Side of the AI Challenge
The biggest barriers to successful AI implementation are human, not technical. Only 5% of HR teams feel equipped to handle AI strategies, despite 42% of CHROs prioritising AI investments.[3]
The future belongs to leaders who recognise that AI is not a replacement for human judgment but an amplification of it. They understand that their role is to elevate human insight, build cultures of trust and guide organisations through uncertainty with clarity and care.
Essential Qualities of AI-Ready Leaders
When identifying executives capable of digital transformation leadership, organisations should look beyond traditional markers of success. Here are some key identifiers:
Cognitive flexibility and adaptive thinking
AI-ready leaders switch mental models quickly, unlearn what no longer works and hold competing ideas without cognitive paralysis. They practice strategic discomfort: deliberately seeking challenges that stretch their thinking.
Emotional intelligence as priority
As AI handles analytical tasks, emotional intelligence becomes the primary differentiator of effective leadership. AI-ready leaders build emotionally intelligent teams and systems.[4] Technology can be replicated, but business cultures rich in emotional literacy and collective resilience carry an enduring competitive advantage.
Strategic vision combined with decisive action
The best AI-ready leaders sustain a clear view of how strategic AI adoption will serve the business whilst taking decisive action in the present. They help teams distinguish between work needing immediate attention and initiatives that can wait … and provide clarity when priorities shift.
Human-AI collaboration design
AI-ready leaders develop nuanced judgment about when to trust AI recommendations and when to override them. They establish clear guidelines for when AI should inform decisions versus when human judgment takes precedence, avoiding either resisting AI entirely or delegating too much.[5]
81% of employees still don’t use AI tools at work[6]
Curiosity and commitment to continuous learning
Leaders in technological change demonstrate life-long learning. They test new ideas, resist treating early successes as finish lines and help others develop new skills and mindsets in cultures where experimentation feels safe.
Red Flags and Green Flags in Candidate Evaluation
When assessing C-suite AI capabilities, specific behaviours reveal genuine readiness versus surface-level knowledge.
Green flags that signal AI-ready leadership:
- Discuss occasions when they stopped AI initiatives that didn’t serve clear business needs
- Describe helping teams navigate emotional dimensions of technological change
- Articulate specific frameworks for deciding when to trust AI versus human judgment
- Share examples of changing their mind based on AI-generated insights
- Demonstrate understanding of AI governance and ethics in practical, not just theoretical, terms
Red flags that suggest competence gaps:
- Focus exclusively on AI technical capabilities without addressing people implications
- Cannot articulate personal experience using AI tools in their work
- Treat AI adoption as purely an IT initiative rather than organisational transformation
- Avoid discussing failures or lessons learned from AI experiments
- Show resistance to questioning established practices
- Demonstrate limited curiosity about how AI might disrupt their own decision-making
$243 billion = the value of the global AI services market in 2026[7]
Organisations face a crucial decision: develop existing leaders or recruit from outside?
Developing internal candidates offers institutional knowledge.
- To cultivate AI-ready leadership internally, revisit success profiles to emphasise adaptability and collaboration.
- Integrate AI-readiness into assessments for promotions and succession planning.
- Coach existing leaders on working confidently alongside AI, focusing on mindset shifts.
Recruiting external talent injects fresh perspectives and proven experience.
- Leaders from organisations further along in AI adoption bring valuable lessons learned
- However effective the executive search for AI era is – new hires still need time to build credibility and understand organisational context.
Retention Strategies for AI-Ready Leaders
Retaining high-demand AI-ready executives requires deliberate strategy:
- Provide genuine strategic influence. Ensure AI-ready leaders have meaningful input into how AI transforms the business. Give them board-level exposure and direct reporting lines that reflect their importance.
- Create robust learning environments. Offer access to cutting-edge thinking, peer networks and opportunities to experiment with emerging technologies. Sponsor attendance at leading AI conferences and budget well for professional development.
- Foster cultures of trust and psychological safety. Build forums where leaders can raise concerns and challenge assumptions about AI strategy without facing political consequences.
- Offer competitive compensation reflecting market realities. Executives leading AI transformation command premium salaries. Structure compensation acknowledging their scarcity, including equity arrangements and retention bonuses tied to meaningful milestones.
- Demonstrate commitment to ethical AI governance Establish clear AI governance frameworks considering impact on employees, customers and society. Give AI leaders authority over ethical guidelines, not just technology deployment.
- Enable them to build AI-ready teams Provide autonomy and resources to recruit complementary team members. Support their efforts to develop AI capabilities across direct reports.
- Create clear succession paths Show AI leaders where they can progress, whether expanding their remit, taking on additional business units or moving into broader executive roles.
- Celebrate intelligent failures and learning Reward both successes and well-considered experiments that didn’t work. AI transformation requires risk-taking, and leaders need to know the organisation values learning over perfection.
Leaders and technology
AI can accelerate performance and reshape jobs, but it cannot lead. The leaders who thrive will be those who elevate human insight, demonstrate courage and build cultures where both people and technology contribute their unique strengths.
Sources
[1] https://www.forbes.com/sites/bernardmarr/2025/03/10/15-mind-blowing-ai-statistics-everyone-must-know-about-now/
[2] https://www.kornferry.com/insights/featured-topics/gen-ai-in-the-workplace/how-to-spot-an-ai-ready-leader#
[3] https://www.kornferry.com/insights/featured-topics/leadership/role-of-the-chro
[4] https://www.forbes.com/councils/forbescoachescouncil/2026/01/07/the-5-skill-sets-leaders-must-develop-in-the-ai-era/
[5] https://www.gartner.com/en/articles/the-future-of-leadership-with-ai
[6] https://www.forbes.com/sites/bernardmarr/2025/03/10/15-mind-blowing-ai-statistics-everyone-must-know-about-now/
[7] https://www.forbes.com/sites/bernardmarr/2025/03/10/15-mind-blowing-ai-statistics-everyone-must-know-about-now/
