3 leadership lessons from AI-powered companies
Even as AI investment rises, many organizations don’t see the returns they expected. They might see small improvements by deploying AI tools into existing structures. But true success means thinking beyond the technology alone, reinventing tomorrow’s workflows, and putting AI to work for people. Our research shows only 5% of organizations are redesigning work, while others are optimizing what…
AI-powered companies face challenges in realizing expected returns on their investments. While small improvements can be seen by integrating AI tools into existing structures, true success requires a shift in how work is approached and AI is utilized to benefit people. According to our research, only 5% of organizations are redesigning work, while the majority are merely optimizing what already exists. Our CEO emphasized that AI necessitates a strong people strategy as its core.
To achieve genuine transformation, companies must focus on several key steps. First, they must build a solid foundation based on data and governance. This involves designing AI systems as if starting from scratch, establishing structured processes with clear governance, accountability, and scalability. PepsiCo's chief people officer exemplified this by prioritizing data hygiene and focusing on all employees, including those in safety-critical roles.
Second, organizations should enable their people with the necessary skills. By 2031, technical skills related to data quality, software development, analytics, and AI are expected to grow fastest. However, human capabilities such as agency, learning velocity, emotional intelligence, adaptability, and design thinking are also in high demand.
Real-time learning embedded in daily work is more effective than traditional reskilling programs, as it allows employees to understand the purpose behind AI use and appreciate the value of human judgment.
Lastly, change readiness is crucial. AI adoption often results in a disconnect between leaders and employees regarding the organization's AI strategy. Leaders must address this gap through continuous, adaptive, and decentralized change readiness. This involves shifting the mindset from "don't break this" to "let's try this," enabling a workforce that can pivot swiftly to keep up with innovation.
IBM's senior vice president and chief human resources officer redefined her organization's approach using an "X-Ray" framework, ensuring employees felt comfortable with AI and understood the evolving skills landscape.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
