Rise of AI creating unprecedented challenges for CEOs and company leaders
AI has shifted from novelty to necessity. For companies across the GCC, the question is no longer whether to adopt AI, but how quickly and effectively it can be embedded. Yet the greatest challenge AI presents is not a technical one – it’s human, writes Natalie Sleiman of Russell Reynolds Associates.
Across the GCC, ambition and investment in AI are at record highs. The region is keeping pace with, and in some sectors outstripping, global benchmarks – thanks in part to affluence, partnerships and world-class initiatives like Abu Dhabi’s Falcon AI.
But as we learned from the compressed digital transformations of the Covid-19 era, true progress is about people and process as much as technology. The competitive question is no longer acceptance, but speed and capability: How much do you need it, and how fast can you get it?
For many leaders, the pace and scale of AI is both a catalyst for growth and a test of adaptability.
A 2024 Russell Reynolds Associates survey found 61% of Middle East leaders see technological change as a top five threat – significantly higher than the global average of 53%. Yet in a follow-up survey this year, only 41% of more than 3,000 leaders surveyed expressed confidence in their own AI expertise; confidence was only marginally higher for their leadership teams (44%) and dropped to 32% for employees and just 25% for boards.
This “riding the tiger” dynamic – where leaders embrace AI’s promise without fully grasping its implications – captures a region-wide challenge. Most AI transformations falter not because of insufficient technology, but because of gaps in leadership readiness, courage and culture.
As a result, AI success hinges not just on adopting technology, but on leadership’s ability to translate strategy into action, foster agility, and keep organizational culture aligned with digital ambition.
Yet, these demands come at a time of record volatility. In the technology sector, CEO turnover reached a record high in 2024 – a 21% increase over 2023 and the highest turnover rate of any sector globally – underscoring the immense pressure on leadership to adapt. Resistance to change, especially among long-tenured staff, remains a persistent obstacle.
To navigate this landscape, organizations need resilient, future-ready leaders who are not only willing to adapt themselves but also equipped to bring their people along – staying closely attuned to shifting behaviors and expectations.
Building Leadership for an AI World
Boards, too, have a critical role. They must reshape culture by championing the AI imperative and improving governance, ideally by bringing in directors with hands-on digital transformation experience, even if not AI specialists. The trend toward hiring Chief AI Officers and tech-savvy directors is a positive step, but more is needed, especially among family businesses and local conglomerates.
By investing in leadership development and upskilling, organizations can begin to close the gap between national ambition and available talent.
Infrastructure: An Enabler
The GCC’s infrastructure investments – data centres, cloud platforms and AI research hubs – are among the boldest in the world. The region’s digital infrastructure market is projected to grow from $360 billion in 2025 to $1.06 trillion by 2030, one of the fastest rates globally.
How will AI’s soaring energy demands affect national sustainability commitments – especially in countries rapidly expanding their data centre footprint? How can organizations align infrastructure investments with the scale of local upskilling efforts and opportunities in global talent mobility? And with technology advancing so rapidly, how can leaders ensure today’s investments will remain relevant and resilient tomorrow?
Many leaders are not yet prepared to answer these questions with authority. Addressing this readiness gap is essential if the C-suite is to unlock AI’s full potential.
The Way Forward
The most successful organizations take a holistic, practical approach:
Decode complexity: Translate AI ambition into actionable, organization-wide strategy.
Portrait leadership: Use rigorous frameworks to identify and empower leaders who can sustain momentum through disruption.
Champion culture: Align behaviours and values across every level, from boardroom to front line.
For leaders willing to invest in their own readiness, and their teams’, AI is the ultimate growth engine. The future belongs to those bold enough to lead it.
