AI Expertise is the Leadership Quality of Tomorrow

European executives agree: artificial intelligence will become the most important leadership skill of the next decade. As a recent survey shows, we can expect to see a C-suite that makes data-driven decisions, but not inhumane ones. 

Technological change, global instability, changing workforce dynamics, and rising stakeholder expectations: these four megatrends are putting enormous pressure on the C-suite to adapt. And what will things look like in ten years? The conditions that executives will then have to navigate will have become even more complex. Decisions will have to be made in real time, based on enormous amounts of data. Will decision intelligence have completely taken over in companies and government agencies? Will leadership still be possible at all under the current rules of the game?

Supported by AI, Not Replaced

Answers to these questions are provided by the study commissioned by Robert Half, “Towards the C-Suite 2035.” AI expertise will be the most important leadership skill in ten years' time, according to 84 percent of the executives surveyed on behalf of Robert Half. But the perfect balance between intuition and data analysis must also be maintained. Almost half of the survey participants (49 percent) therefore predict a hybrid leadership model for the future, in which technology and human judgment go hand in hand. Only one in ten survey participants believes that AI will take over all decisions.

A total of 400 C-suite executives from various industries in the EU and the UK provided information for the study in the first quarter of this year. The participants were evenly distributed across all company sizes, both publicly traded and privately held. In addition, the assessments of 100 European and US private equity investors were included in the analysis.

Companies Should Invest in Next-Gen Leaders Now

According to the analysis, the greatest threat to a harmonious future with artificial intelligence is the C-suite blind spot. This refers to the risk that companies will fall behind if they fail to recognize the need for upskilling across all levels of their organization. Executives are still primarily concerned that their technology could fall short of performance expectations. Meanwhile, investors see the ability to attract, retain, and develop top talent as the top challenge for organizations.

This discrepancy is at the heart of a growing problem. With two baby boomer generations gradually approaching retirement and the rapid introduction of new technologies, talent management and human resource development are pressing issues. So how can the gap between technology and talent be bridged? According to the study, the key now is to strengthen existing roles that emphasize relationships within the company while creating new key roles to support them.

Next-gen leadership roles for future-proof companies:

• Vice President of Technology Transformation: supports COO and CSO
• Vice President of Talent Transformation: supports Chief HR Officer
• Vice President of AI and Data: supports CTO, CIO, and COO
• Digital Transformation Leader/Digital Development Manager: creates operational momentum for technology and human resources projects

How the C-Suite is Navigating into the Next Decade

The job of executives is also to understand the logic, opportunities, and risks of AI. In smaller companies, this knowledge should be passed on transparently. This means that direct communication and emotional intelligence are the soft skills of executives that hold teams in SMEs together. Large companies and corporations should be guided through complex change with strategic thinking and creativity, according to the recommendation. And in the coming decade, companies of all sizes will need leaders for whom innovation is not just another buzzword. The study experts answer the question of what steps need to be taken now to ensure that companies remain competitive in the next decade with an action plan.

Action Plan 2035:

• Hire an innovation and change manager or digital transformation leader.
• Hire a succession planning lead.
• Encouraging C-suite executives to develop their digital skills.
• Targeted investments in cyber and network security (especially for SMEs).
• Developing the next generation of leaders by establishing a second tier of leadership (VPs and directors for technology/talent transformation, AI & data).
• Implementing succession plans to close skills gaps.
• Focus on cross-functional experience, mentoring, and simulation-based learning to prepare leaders for unpredictable situations.

To build the C-suite of tomorrow, the study's authors recommend a two-pronged approach. In the short term, external experts would help close skills gaps. By 2035, talent would need to be developed internally and new key roles created.

This is a partly automated translation of this german article.