Leaders rank technological change as top factor shaping organizational health

Leaders now see technological change as the number one factor shaping organizational health, according to a global survey by Russell Reynolds Associates. For the first time since the human capital consultancy launched its Global Leadership Monitor five years ago, technological change has taken the top spot.

In its biannual Global Leadership Monitor, which captures the views of more than 2,700 business leaders on leadership preparedness in response to external trends and organizational health, Russell Reynolds Associates found that leadership has reached an inflection point, with technological change emerging as the single most critical factor influencing organizational performance.

Two in three (63%) executives identify technological disruption – including artificial intelligence, machine learning, robotics, big data, Internet of Things, and related technologies – as a significant opportunity or challenge in the next 12 to 18 months. This represents a near doubling of concern since 2022, rising from 32% with a near 10-percentage-point increase in the last year alone. 

This is already translating into action on the ground: 35% of leaders report their teams have fully implemented Generative AI into daily workflows, nearly double the 19% recorded just twelve months ago.

Despite overarching optimism for the opportunities technology presents, the report nods to an apparent execution gap: only half (51%) of leaders feel confident in their ability to operationalize these technological shifts. This, however, is higher than perceived preparedness for external challenges beyond executive control, such as geopolitical uncertainty (32%) and uncertain economic growth (40%).

Other key finds from the global survey include:

• Strategic thinking remains the defining leadership capability. While tech literacy would seem the most vital competency for leaders in this climate, the report reveals that over half (55%) rank strategic thinking skills as the highest in demand for dealing with top organizational health levers – a notable 24 percentage points above the next highest rank skill, change management (31%).
• With the growing weight of AI in business and leadership performance indicators, the demand for human judgement intensifies. Leaders increasingly value capabilities associated with judgment, adaptability, prioritization, and long-term thinking over narrower domain expertise alone.
• Talent mobility remains elevated as leaders reassess long-term career alignment. Nearly two-thirds of leaders report being open to making a move beyond their current employer; up 5% since H1 2025. A significant segment (86%) of next-generation leaders want to take on more responsibilities in the next 2-3 years, and over two-thirds (67%) want to become a C-suite leader in the future.

The UAE

Zooming in on the UAE respondents, Russell Reynolds Associates said that despite the current geopolitical environment, uncertain economic growth has been displaced from the top of the corporate agenda by tech-driven change.

“The pace of technological adoption in the UAE – particularly when it comes to AI – is staggering,” said Nicolas Manset, Head of the Middle East at Russell Reynolds Associates. “The government’s push for global digital leadership makes technology one of the defining forces facing organizations in this country.”

Earlier this year, UAE leadership announced a framework to transform half of government sectors and services to agentic AI in the coming two years, followed closely by a Dubai initiative to accelerate the adoption of agentic AI in the private sector.

“These initiatives send a clear signal that AI is no longer a future consideration but an immediate national imperative,” said Manset. “The pressing challenge, as shown by our survey, is building the executive capabilities and board-level governance necessary to guide organizations through this transformation. That will ultimately be the differentiator between long-term success and failure.”

Saudi Arabia

In Saudi Arabia, the picture is not much different. The kingdom is pursuing strategic partnerships to further expand cooperation and implementation of AI and advanced technologies – most recently through high-level meetings with China – to further position AI as a key driver of economic diversification, innovation, and productivity under Vision 2030.

“In Saudi too, the pace of technological adoption is staggering,” said Manset. “Vision 2030 defines a very clear expectation that digital transformation and AI are not the future, but expectations for the here and now. Business executives in the region realize that relevance and resilience hinge on purpose-driven digital integration.”