One-in-ten leadership teams have no understanding of AI

A new report by leading global consultancy firm, Q5, has uncovered significant concerns about leadership’s grasp of generative AI (GenAI) in the workplace. The research reveals that 1 in 10 employees believe their leadership team has no understanding of GenAI’s potential impact, highlighting a critical gap in the benefits the technology can bring to organisational health, effectiveness and performance.

A new report* has uncovered significant concerns about leadership’s grasp of generative AI (GenAI) in the workplace. The research reveals that 1 in 10 employees believe their leadership team has no understanding of GenAI’s potential impact, highlighting a critical gap in the benefits the technology can bring to organisational health, effectiveness and performance.

This statistic emerges at a time when GenAI is rapidly becoming a cornerstone of innovation across sectors. Despite the widespread push to adopt the new technology, with more than half of surveyed organisations already piloting GenAI, the report indicated that many companies are moving forward without a clear strategy. In fact, only 14% of employees believe their leadership team have a strong understanding of GenAI’s implications, suggesting that the enthusiasm for AI may be outpacing the strategies necessary for its effective use.

While 56% of respondents reported that their companies have set goals and priorities for GenAI adoption, and 57% believe their leadership teams are aligned on its importance, these figures do not paint the full picture. The lack of deep understanding and strategic direction could result in missed opportunities, inefficient implementations, and potentially costly missteps.

Tom Leary, Partner at Q5, emphasises the risks of this AI rush: “The excitement around GenAI is understandable, and grass roots adoption of these new tools should be encouraged with the right safeguards in place.  To create a meaningful step-change in enterprise performance, organisations need to create the right structural and leadership conditions to take advantage of these new technologies.  We’ve seen before with past technological advancements – those that jump in with blind hope or without a compelling vision often struggle to see real long-term benefits.”

The report also sheds light on sector-specific challenges. In the finance industry, over a quarter of employees feel their leadership has limited to no understanding of GenAI’s impact. The situation is even more critical in the education sector, where 67% of respondents believe their leaders lack the necessary knowledge to guide effective GenAI adoption. On the other hand, the healthcare industry shows more promise, with 35% of employees confident in their leadership’s grasp of GenAI and just 3% reporting a total lack of understanding.

The potential benefits of GenAI are significant, with projections from the Institute of Directors showing a direct correlation between its integration and improved business performance (1). However, Q5’s findings warn that the rush to adopt GenAI could undermine its benefits if companies do not first establish the right protocols and protections. The disparity between organisations that have identified clear value on GenAI and those that have not is often due to a lack of clarity around implementation and understanding of how these technologies will impact organisational design.

“While concerns about jobs, misinformation, and brand trust are valid, GenAI offers sectors like media a unique chance to boost productivity and redefine their relationship with big tech,” Graham Page, Head of Media at Q5 added. “In a world where trusted content is more crucial than ever, the potential for transformation is immense.”

To capitalise on GenAI’s potential, companies must ensure that their leadership teams are not only eager to adopt the technology but are also equipped with a deep understanding of its long-term implications and have clear roadmaps in place for implementation.

*report by Q5

Q5 Generative AI report

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