Artificial intelligence is transforming business, but the companies that win in the new era won’t necessarily be those with the best technologies; they’ll be the ones with the best leadership. CEOs must provide vision, must drive the organizational change, must engage the right stakeholders and must ensure that AI gets deployed responsibly and effectively. AI isn’t a strategy; it’s an enabler, and its success depends on human leadership.
AI already outperforms humans in productivity, data analysis and predictive capabilities. However, as Wharton School professor Ethan Mollick puts it, AI exists within a “jagged frontier,” excelling in some areas while struggling in others. It lacks human judgment, moral reasoning and strategic foresight. The emergence of agentic AI and improved models will only heighten the need for a capable human in the loop to ensure AI aligns with business objectives rather than becoming a fragmented tool or one plagued by unintended consequences.
Even so, many CEOs are navigating AI without a clear leadership road map. The 2025 AlixPartners Disruption Index found that 80 percent of executives are optimistic about AI’s impact on their businesses. However, optimism alone isn’t a strategy. Among executives at companies leading in growth and profitability, 75 percent were “extremely optimistic.” Among those at lagging companies, the number dropped to just 30 percent. That gap suggests that a well-informed vision and confident execution serve to separate the AI winners from companies concerned only with implementing the latest technology.
CEOs must lead AI adoption with a clear strategy
For decades, technology decisions were siloed in IT or tech functions. Today companies recognize that AI is not just a tool; it’s a fundamental business enabler. However, that shift has caused organizational frictions: Who owns the AI strategy? How should teams be structured? Where should investments be prioritized? Without clear answers, AI initiatives stall.
We’ve seen companies fail in their AI journeys not because their models were ineffective but because key stakeholders weren’t effectively engaged or aligned. Some weren’t involved early enough, others didn’t understand the vision and many resisted—overtly or covertly—due to AI’s black-box nature. Regardless of how effective a solution is, you can’t force a new initiative on a skeptical board. AI adoption must be in the form of a leadership-driven transformation, not just the latest technology project.
AI adoption is further complicated by employee fatigue. Companies are layering AI onto existing transformation efforts—often overwhelming employees already grappling with change. Research shows that organizations with robust change management programs are six times more likely to meet their AI objectives. Success requires identifying cultural barriers and enablers to transformation. It also means securing buy-in at all levels—from frontline influencers to the boardroom. One approach we’ve seen work well is the hub-and-spoke model, where a core AI team drives the initiative but embeds ownership across functions.
Beyond structure, CEOs must also determine where to invest. AI should be deployed strategically and be aligned with business goals, not just adopted for the sake of innovation. That means selecting high-impact AI use cases, building cross-functional AI teams, engaging key stakeholders and establishing the right governance. CEOs don’t need to know how to build models, but they do need to understand how AI will reshape their workforces, their customers and the competitive landscape.
Four ways CEOs can lead AI transformation
Prioritize leadership and culture first, not technology. AI transformation is not just a technical challenge—it’s a leadership one. CEOs must focus on talent selection as well as talent retention, upskilling and ensuring a culture that embraces AI’s potential while addressing its risks. Gen Z employees, in particular, value career growth; and AI—when implemented correctly—can enable continuous learning and skill development.
Transformational leaders will have to demonstrate resilience amid disruption, adaptability as technology evolves and emotional intelligence in their communications. The best AI models won’t drive results if leadership fails to instill trust, clarity and authentic engagement across the workforce.
Establish guardrails and mitigate AI overreliance. AI certainly unlocks efficiency and scalability, but there’s a fine line between automation and erosion of critical thinking. According to the AlixPartners Disruption Index, 35 percent of executives are worried that overreliance on AI will reduce employees’ problem-solving skills. That’s why CEOs must balance AI adoption with human oversight—ensuring that AI enhances rather than replaces strategic thinking.
Additionally, governance remains an open question. Even AI experts don’t know exactly how legal and ethical frameworks will evolve. CEOs must watch the horizon for risks and regulatory changes, ensuring their AI investments remain compliant, ethical and aligned with customer expectations.
Assess AI risk tolerance—for both employees and customers. Executives must gauge their customers’ and employees’ AI comfort levels periodically. Some AI use cases—like automating back-office processes—will encounter minimal resistance. Others, like replacing customer service agents with chatbots, may alienate key stakeholders. The AI-driven efficiency gains must be weighed against important factors such as trust, risk and reputational impact.
Make the final call—pattern recognition for AI investments. AI investments are substantial, yet many fail—not because of the technology but because of organizational unreadiness. CEOs have to apply executive pattern recognition to distinguish AI initiatives worth pursuing from those likely to falter due to internal resistance, employee exhaustion or lack of strategic alignment.
The worst-case scenario? A powerful AI model that sits on the shelf because stakeholders weren’t first engaged. The best AI CEOs will not just greenlight AI investments but ensure the investments are fully operationalized. The companies that achieve AI success won’t be the ones with the best models; they’ll be the ones with the best leadership.
This is part two in a series. You can read the first part here.
