Navigating leadership in the AI-driven world
The rapid advancement of artificial intelligence (AI) is reshaping the business landscape, compelling leaders to adapt to an AI-driven world. This article examines the widespread adoption of AI across industries, the evolving role of leadership, and explores the potential set of essential skills leaders need to thrive in this new environment.
Rise of AI in business
AI has transitioned from a futuristic concept to a fundamental component of business transformation. A recent survey indicates that:
40% of global companies are currently utilising AI, with an additional 42% exploring its potential applications.
This widespread adoption spans various sectors, including healthcare, finance, retail, and manufacturing, where AI is employed to streamline operations, enhance decision-making, and improve customer experiences (Exploding Topics).
According to Gartner’s 2025 HR Trends Report, AI-driven automation is reshaping roles, requiring leaders to rethink talent strategies to balance efficiency with workforce engagement. AI is also shifting employee expectations, with workers increasingly seeking reskilling opportunities and leadership support in navigating AI-driven changes.
Transforming leadership
With AI becoming an integral part of business strategy, organisations and their leaders must understand and develop new skills to stay relevant.
A 2023 survey by edX revealed that 92% of 500 chief executives plan to improve their AI skills in the coming 12-24 months.
In the following year, a 2024 PwC survey found that 49% of technology leaders have fully integrated AI into their companies.
The integration of AI is altering the skills landscape within organisations. A January 2025 McKinsey report highlights that while almost all companies are investing in AI, only 1% believe they have reached maturity in its implementation. To bridge this gap, leaders must focus on upskilling, adaptability, and fostering a culture of continuous learning. In addition, leaders will need to assess and identify potential skill gaps within organisations, and prepare teams for AI-augmented roles (Gartner, 2025).
Therefore, the role of leaders is expanding to encompass several key responsibilities in the AI era:
Adaptability and continuous learning
To stay ahead, leaders will need to invest in continuous learning, adapting to the rapid evolution of AI technologies.
Redesigning organisations
Integrating AI will require leaders to restructure organisations to optimise human-AI collaboration within processes and teams.
Amplifying growth
AI can enable leaders to identify new opportunities, enhance productivity, and drive competitive advantage. It will be important for leaders to understand how to leverage this and action these possibilities for growth.
Moderating ambitions
Ethical considerations are a priority to ensure fairness, transparency, and accountability in AI applications, as well as the trust of teams.
Workforce engagement
With AI automation increasing, leaders must ensure employees remain engaged, motivated, and reskilled for emerging roles (Gartner, 2025).
Considerations for leadership identification and development
Saville Assessment’s Leadership Impact Model: The 3 Ps Framework
As organisations are pushed to redefine leadership in an AI-driven world, ensuring fairness and effectiveness in leadership identification and development is critical. Evidence-based tools that go beyond traditional concepts of leadership will support in capturing the evolving skills and leadership impact required for successful AI integration.
Saville Assessment’s Leadership Impact Model deconstructs traditional approaches to assessment of leadership and highlights the need for diverse leadership. In developing our own model, we analysed data that pointed clearly towards the idea that there were three broad types of leadership: Professional, People and Pioneering leadership. We believe AI will require different types of leaders across various domains:
Professional
Leaders
Those with impact in technical expertise and continuous learning, ensuring they stay up-to-date with AI advancements.
People Leaders
Focus on motivating teams, fostering a human-centered AI adoption approach, and ensuring AI enhances collaboration rather than replacing human ingenuity.
Pioneering
Leaders
Visionaries who leverage AI to drive innovation, growth, and long-term strategic advantage.
By leveraging advanced leadership assessment tools, organisations can ensure they identify and develop leaders who are not only equipped to work with AI but also foster a balanced approach that integrates technology with human-centric leadership.
Redefining, not replacing leadership
AI is not replacing leadership; it is redefining it. Leaders who embrace AI literacy, ethical considerations, and continuous learning will likely be well positioned and equipped to navigate this evolving landscape. By aligning leadership strategies with AI’s transformative potential, organisations can remain competitive and foster a future-ready workforce.
Additionally, it is important to consider HR’s role in shaping AI-ready leadership. Organisations should be prioritising leadership development programs that integrate AI skills as well as workforce well-being, change management, and strategic adaptability.
As stated by Forbes in their March 2024 article, with AI, standing still means being left behind. Leaders who successfully embrace AI and bridge the gap between technology and human potential will define the future of AI-driven business and leadership success.
AUTHORS:
Amber Williams
Managing Consultant – Saville Assessment
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