AI leadership gap threatens European competitiveness

Recent research conducted by Coqual and Catalyst reveals that a significant number of business leaders in the United Kingdom, France, and Germany are ill-prepared to effectively lead in an AI-driven world. The study, which surveyed 2,891 leaders and employees, indicates that while AI adoption is on the rise, leadership capabilities remain a critical issue, with 63% of respondents admitting to feeling unprepared.

For readers of eeNews Europe who are closely following trends in industrial digitalization, embedded AI, and enterprise transformation, the findings serve as a stark reminder that simply investing in technology is not enough to secure a competitive edge. Successful execution and strong leadership are essential components for navigating the complexities of an AI-enabled landscape.

The Emergence of the “Convergent Leader”

Interestingly, the research highlights that while 49% of leaders in the UK consider themselves skilled in AI, the numbers drop significantly to 23% in France and 17% in Germany. However, the study emphasizes that technical proficiency alone does not translate to tangible outcomes. Business performance sees a marked improvement only when leaders possess the ability to inspire and guide their teams through periods of change.

The study introduces the concept of the “Convergent Leader” as a new breed of leadership. These leaders not only possess AI expertise but also exhibit inclusive leadership qualities and maintain a flexible mindset. Over 37% of the surveyed leaders fall into this category, with the highest concentration in the UK (55%), followed by Germany (25%) and France (20%).

Convergent leaders are characterized by their ability to strike a balance between human judgment and technology, create a psychologically safe environment, and navigate uncertainty with confidence. A key feature of these leaders is their flexible mindset, which encompasses cognitive adaptability, insatiable curiosity, composure under pressure, and a focus on human-centric decision-making.

The business impact of having convergent leaders at the helm is substantial. Organizations led by such individuals report a 93% increase in team productivity compared to a 34% increase under non-convergent leaders. Additionally, they demonstrate superior performance in areas such as revenue growth, innovation, operational efficiency, and market expansion.

Challenges of AI Adoption Without Human Planning

Despite the growing adoption of AI, the study sheds light on the lack of readiness to address the workforce implications. A significant portion of employees (34%) express concerns about being replaced by automation, yet only 35% feel that their organizations are assisting them in developing AI-related skills relevant to their roles.

Furthermore, there seems to be a dearth of long-term planning in this regard. Only 28% of leaders (and a similar percentage of employees) indicate that senior management is actively planning for the future impact of new technologies on the workforce. In countries like France and Germany, this figure drops even lower.

Another critical issue highlighted in the research is the lack of measurement when it comes to quantifying the impact of AI. A staggering 95% of leaders admit that their organizations do not track the effects of AI, making it challenging to assess its true influence. Among those that do measure impact, innovation metrics take precedence over engagement and retention metrics.

As industries across Europe, particularly those driven by engineering, increasingly integrate AI into their operations, the study underscores the importance of embedding AI capabilities within the organizational culture and workforce strategy. In sectors such as manufacturing, automotive, semiconductors, and industrial systems, leadership maturity may emerge as a decisive factor alongside technical prowess in determining the long-term success of organizations.