Why AI Success Depends More on Leadership Than Advanced Technology

There’s a saying: for every ten leaders who talk about AI, only one is actually using it.

And that’s one of the reasons so many AI enablement initiatives fail. Technology often takes the blame—the tools aren’t mature enough, or the timing isn’t right.

Yet some companies are succeeding.

What separates them? Leadership.

In the realm of AI, those who actively think with AI—and work with AI—become the true catalysts of transformation.

While organizations pour millions into AI tools and infrastructure, one uncomfortable truth keeps surfacing: the biggest barrier to AI success isn’t technical. It’s cultural. And cultural change starts at the top.

Here’s the twist: Frontline employees are adopting AI at a pace significantly faster than senior leaders anticipate.. Recent data shows they’re embracing AI three times faster than executives estimate. This is a reversal of the norm—where once teams waited for official approval before trying new tools, today they’re running ahead on their own.

The proactive energy around generative AI is rare. But leaders cannot simply observe from the sidelines and check a box. Without first-hand understanding of this groundbreaking technology, organizations will never unlock its full potential.

And as new surveys reveal, even when employees embrace AI, organizations often fail to capture the full value of that initiative—because leadership isn’t leading it.

Sink or swim?

The AI Wave… or should we call it the AI Tsunami?

“Mav, my management said that AI is not relevant to our industry.”

If that statement had come two years ago, I could have understood. But for a manufacturing company to say that in April 2025? I couldn’t help but feel sad.

If it had been an employee, I might have closed an eye. But hearing it from the leadership team showed just how complacent some leaders still are toward AI—and digital transformation as a whole.

(Ironically, it was the employee who proactively reached out to us to explore upskilling her department on AI. I imagine she was equally disappointed.)

Globally, AI has moved beyond the hype cycle. According to recent reports, 78% of companies now use AI in at least one business function—up from 55% in 2023. Generative AI, the flashpoint of 2023’s AI boom, continues its exponential trajectory. By early 2025, over 71% of organizations had adopted GenAI in some capacity.

The wave is real—and it’s massive. Fortune 500 firms are leading the charge, with 93% of CHROs reporting AI already active within their HR systems.

The highest rates of adoption? Marketing, Sales, HR, Product Development, and Operations—functions that thrive on AI’s ability to personalize, process, and predict at scale.

Asia-Pacific, particularly Malaysia, is rising fast. With 34% of Malaysian firms planning AI integration within the next two years, the region is rapidly catching up to North American levels.

Yet despite overwhelming evidence, some organizations still cling to the risky ‘wait-and-see’ approach.

But let’s be honest: we’re already wet. It’s not about waiting anymore. It’s about swimming—or sinking.

The leader’s headache when it comes to AI Enablement.

What’s Blocking Real AI Enablement in Organizations?

Despite the momentum, most organizations are still struggling to scale AI meaningfully.

What’s holding them back?

We’ve already established that it’s not the technology. If it were, we wouldn’t see so many examples of AI-driven success.

At its core, the real challenge is human.

According to recent studies, approximately 70% of AI adoption barriers stem from people-related issues—culture, leadership, skills gaps—not technology. Leaders often overestimate the technical hurdles and underestimate how much cultural transformation is needed.

Unlike previous digital transformations—like the adoption of Microsoft Office, email, or even social media—AI isn’t just another tool. It’s a thinking partner. It’s more akin to how the internet, social media, and mobile computing redefined entire industries.

AI is structurally and practically different from anything we’ve faced before.

From research, here are the four human barriers slowing organizations down:

• Leadership inertia

• Lack of a clear, communicated AI vision

• Major gaps in digital skills and workforce readiness

• Poor change management, with no safe space for experimentation

Only 15% of employees say their organization has a clear AI integration plan. Nearly half of employees fear repercussions from management if discovered using AI tools—perceiving it as ‘cheating’ rather than innovation.

(We explored this dynamic further in our earlier piece, The Smuggling of AI.)

The real barriers aren’t technical. They’re human: misalignment, hesitation, and absence of leadership.

Leaders are the catalyst for change.

U.N.I.T.E. – The 5 Moves of Transformational AI Leadership

Ok, enough of talking about the state of AI, and the barriers of adoption. Let’s look at what we can do instead.

To break through these barriers, leaders must move first—not with announcements, but with action. That’s where the UNITE framework comes in.

UNITE goes beyond a catchy acronym that boosts retention. It’s a playbook for leading from the front in the age of AI.

Use AI Yourself

“You can’t lead transformation from the sidelines.”

AI isn’t something you simply approve—it’s something you experience. When executives use AI for writing, planning, brainstorming, and analysis, it signals to everyone: “This matters. This is real.”

From our work with department heads and key leaders, one pattern stands out: once they experience curated AI tools firsthand, the common reaction is, “Why didn’t we know about this earlier?”

Leaders are blessed with experience. Combine that with the right tools, and you unlock a floodgate of implementation and innovation.

If you’re unfamiliar, make it a priority. As Prof. Ethan Mollick of Wharton says, “Bring AI to the Table.” Before hitting send on that email—or the moment you review a quarterly report—let AI take a first pass. You remain in control, but you’ll gain fresh angles you might otherwise miss.

Experiment, learn actively, and foster curiosity. Because nothing erodes credibility faster than endorsing a technology you haven’t explored.

When leadership models exploration, they signal that progress matters more than perfection.

Normalize It Across Teams

“What feels normal spreads fast.”

AI adoption isn’t just about scale—it’s about rhythm. When leaders share how they’re using AI in meetings, town halls, or 1:1s, they create permission. When teams are encouraged to try, fail, and learn out loud, adoption spreads.

One of the mindsets we stress during our Workplace AI workshops is to “adopt an experimenter’s mindset.” Just like any good experiment, set the I.O.S. (Indicators of Success), establish the timeline, and activate agile experimentation.

The goal of experiments isn’t necessarily positive results. It’s to learn. And learning doesn’t happen without action.

Make curiosity a cultural norm. Actively celebrate incremental successes and lessons learned. Show that using AI doesn’t require a data science degree—it requires initiative and courage.

When you build a workforce that’s proactively curious and looking to shake up the status quo, you’re building your Next-Gen Pioneers.

When exploration becomes expectation, true transformation begins.

Integrate AI Into Decisions

“If it’s not part of the decision-making, it’s just noise.”

Leaders must stop treating AI like a novelty and start using it as a co-strategist. Whether it’s market analysis, content generation, or customer insights—AI needs a seat at the table.

Yet too often, AI is introduced after decisions are made—more as an add-on than an input. That’s a missed opportunity.

At a recent client session, a leadership team used a simple AI tool during quarterly planning. It surfaced customer behavior patterns they had overlooked, sharpening their priorities and boosting market response. It wasn’t about trusting AI blindly—it was about seeing differently and making smarter moves faster.

Many organizations continue viewing AI primarily as a tool for efficiency and cost reduction, overlooking its strategic potential. That’s useful, but short-sighted. Leaders must instead look at AI for Revenue Acceleration, Market Expansion, and Position Solidification.

In every leadership meeting, embed this habit: How can we make this better, faster, or smarter with AI?

When your team starts asking the same questions instinctively, that’s when you know AI thinking has truly been integrated.

Decisions shaped by AI today will define your competitiveness tomorrow.

Tie It to Business Strategy

“AI isn’t a side project—it’s a force multiplier.”

Companies that win with AI treat it as a strategic enabler tied directly to business goals—not just a tech experiment.

When AI projects align to real outcomes like faster operations, better customer experiences, and growth acceleration, they shift from being optional initiatives to strategic imperatives.

The leap from an isolated pilot to a scalable platform is powered by strategic alignment with business outcomes.

One retail company, after a small AI experiment in inventory prediction, didn’t stop at early success. Leadership moved fast to embed AI forecasting into their formal supply chain SOPs. Within two quarters, they reduced stockouts by 35% and boosted customer satisfaction.

That’s the power of alignment. AI wasn’t left sitting in a “sandbox”—it became part of how they operated daily.

Leaders must ask:

• Is this solving a core business problem?

• Is it tied to a priority that matters?

• Can it scale beyond a single team?

When AI initiatives are visibly tied to results, it’s easier to motivate teams, reward efforts, and build lasting momentum.

When AI serves the mission—not the menu—you create unstoppable momentum.

Evangelize the Vision

“If you’re not spreading the message, no one’s buying in.”

This is where culture takes root. Leaders don’t just model behavior—they inspire belief.

Consistent storytelling around AI successes isn’t optional—it’s fundamental for organizational buy-in and cultural adoption.

A vision locked in leadership’s mind goes nowhere. A vision repeated and celebrated becomes embedded in the organization’s bloodstream. People need to hear not just what AI can do, but why it matters—to them, to the company, and to the future they’re helping build.

Send regular updates highlighting real AI wins.

Recognize pioneers who drive small experiments.

Host town halls where teams share their AI journeys—their struggles and breakthroughs.

Make AI part of the everyday story—not a side conversation for innovation teams.

Celebrate progress both internally and externally. Post success stories. Shine a light on experimentation, learning, and smart execution.

By making progress visible, you reinforce the behaviors you want multiplied.

Because if you’re not telling the story, someone else will—and it might not be the version you want.

In the end, it’s simple: If leadership doesn’t evangelize the vision, employees won’t personalize it.

Vision repeated becomes culture embedded.

The cost of sitting on the bench can potentially be more than actually making the mistakes.

The Cost of Inaction

Let’s talk about what’s at stake—because it’s bigger, faster, and more unforgiving than many leaders realize.

McKinsey estimates that AI could unlock $4.4 trillion in productivity gains globally. But here’s what they are not telling you: most of that value will go to the companies that act early, iterate fast, and embed AI deeply into their operations.

Those who wait risk being permanently locked out of the advantage curve.

Already, 78% of companies have adopted AI in at least one function, and 71% are actively integrating generative AI into their workflows. Meanwhile, only 1% of companies report achieving true AI maturity. The window between “exploration” and “entrenchment” is closing—and fast.

On the other side of action?

• Pilots that never scale

• Infrastructure that sits idle and depreciates

• Talent that leaves for more AI-forward environments

• Rising costs for late-stage adoption and urgent talent acquisition

Delay is not a neutral decision—it actively diminishes your competitive positioning and talent attractiveness. It’s actively eroding your competitive edge. Every quarter you delay:

• Productivity gaps widen.

• Recruiting AI-skilled talent becomes more expensive.

• Market leaders move further ahead while followers scramble to catch up.

Due to AI exponential growth nature, this could be a wave where you might never be able to catch up.

Inaction carries not just an opportunity cost—it carries a replacement cost. Employees, customers, and strategic partners naturally gravitate toward forward-thinking companies that embrace innovation rather than cling to legacy approaches.

Indecision is no longer a pause button. It’s a decision to fall behind.

The organizations that will thrive in 2025 and beyond aren’t the ones who waited for perfect certainty. They’re the ones who built capability while others hesitated.

Delay is expensive. Inaction is a risk. Indecision is a decision—and in today’s AI-driven landscape, it may well be the costliest one.

The Future of Teams are lead by a Futuristic Leader.

In Closing: The Future Belongs to Leaders Who UNITE

This is your mirror moment.

“If your team is using AI and you’re not, you’re not leading—you’re lagging.”

AI enablement isn’t a tech project, or a ego-stroking initaitive.

It’s a leadership test.

The organizations that win won’t just have better tools. They’ll have bolder leaders—leaders who act, adapt, and inspire while others hesitate.

Because the future won’t wait for us to feel ready.

It will reward those who move decisively while others deliberate.

It will crown those who experiment while others excuse.

It will favor those who UNITE while others fragment.

And the first step?

Not a million-dollar platform.

Not a boardroom announcement.

Not a corporate rebrand.

The first step is deceptively simple:

Use AI Yourself.

Experience it in your daily decisions. Challenge your assumptions. Model curiosity, not just caution.

Because you can’t normalize what you don’t use, you can’t inspire what you don’t embody, and you can’t lead what you don’t live.

So don’t just greenlight AI.

Use it. Normalize it. Integrate it. Tie it to your business strategy. Evangelize it.

UNITE your team with AI, and emerge as the market leader of your industry.