NewsMacroKorn Ferry Survey: Just 6% of Leaders Say Executives Are Fully Prepared to Lead AI Transformation

Korn Ferry Survey: Just 6% of Leaders Say Executives Are Fully Prepared to Lead AI Transformation

Author: Fortune Crypto·

Key Takeaways

  • •Only 6% of talent and senior leaders surveyed by Korn Ferry believe their organizations' top executives are fully prepared to lead AI-driven transformation.
  • •The Talent Trends 2027 report, based on a survey of more than 1,300 leaders in over 75 countries, found 66% of respondents expect middle managers to spend more time helping teams through change than overseeing day-to-day work.
  • •In the survey, 77% of respondents said capability gaps will pose a bigger challenge than talent shortages, and 78% believe too few people are prepared for how work will be done in the future.
  • •Gallup data shows 43% of employees whose employers communicated a clear AI integration plan were engaged at work, compared with 28% without such a plan, while active manager support for AI was associated with 48% engagement versus 30% without it.
  • •Korn Ferry's Susan De La Vega advised that leaders learn AI tools themselves, provide job-specific training with room to experiment, and brief managers on the reasoning behind decisions before they reach their teams.
Korn Ferry Survey: Just 6% of Leaders Say Executives Are Fully Prepared to Lead AI Transformation

Just 6% of talent and senior leaders believe their organizations' top executives are fully prepared to lead AI-driven transformation, according to Korn Ferry's Talent Trends 2027 report. Instead, middle managers are expected to fill the gap: two-thirds of respondents (66%) expect managers to spend more time helping their teams through change than overseeing their day-to-day work.

The global organizational consulting firm published the findings on Oct. 22, drawing on a survey of more than 1,300 talent and senior leaders, ranging from chief human resources officers to CEOs and board members, in more than 75 countries.

The concerns extend beyond leadership readiness. More than three-quarters of respondents (77%) say capability gaps will pose a bigger challenge than talent shortages, and 78% believe too few people are prepared for how work will be done in the future. Read together, the two findings point to a shift in emphasis: the bigger worry is not simply finding enough people, but preparing the workforce for how AI is changing the way work gets done.

As companies bring AI into the workplace, middle managers increasingly find themselves caught between executives' ambitions and the realities of implementation. Fortune reported in October that the added responsibilities are straining managers and teams that already have little capacity to spare, and many of those managers now oversee larger teams following years of cuts to management layers.

"Managers will become the shock absorbers of the organization," Cathi Rittelmann, a senior client partner at Korn Ferry, said in the report. "Their job will be to help teams keep moving, even when they can't tell them exactly where things are heading."

Managers Are Explaining Decisions They Didn't Make

Susan De La Vega, senior vice president of global tech market and client experience at Korn Ferry, told Fortune that AI transformation requires redesigning the workforce rather than simply rolling out new technology. The skills many roles require are changing, she said, which makes adaptability increasingly important.

Asked whether companies expect managers to handle AI-driven uncertainty without adequate guidance from senior leadership, De La Vega replied, "Oftentimes, yes."

"Managers end up defending and communicating for AI mandates that they had no say in and little context," she said.

When leadership later changes course, employees are left redoing work. De La Vega warned that poor communication can erode trust, feed disengagement and drive away valuable employees.

Clear AI Plans Track With Higher Engagement

Korn Ferry is not the only firm highlighting the communication gap. As of May, just 25% of U.S. employees said their organizations had communicated a clear plan for integrating AI, even as 47% said their employers had begun integrating AI tools, Gallup found.

That lack of clarity may carry a cost. A July Gallup analysis of employees at organizations that have adopted AI found that 43% of those whose employers had communicated a clear integration plan were engaged at work, compared with 28% of those whose employers had not, or who were unaware of one.

Managers made an even bigger difference. Employees who said their manager actively supports their team's use of AI were engaged at 48%, versus 30% among those who did not.

What Getting It Right Looks Like

For De La Vega, the responsibility starts at the top.

"Leaders go first. They learn the tools themselves, so they can speak credibly about what AI changes and what it doesn't," she said.

She also stressed job-specific training: a finance analyst has different needs from a data scientist. Companies should give employees time to learn and room to experiment, even when their first attempts don't work out.

Managers also need to understand the decisions they are expected to explain. De La Vega said they should be briefed on the reasoning behind leadership decisions before those decisions reach their teams, so they have enough context to answer employees' questions.

Rather than waiting for a flawless master plan, leaders need to share what they know, acknowledge what remains uncertain and lay out the broader roadmap.

Companies may need middle managers to guide employees through the AI transition. But as De La Vega put it, "the 'shock absorbers' need a system behind them to operate."

This story was originally featured on Fortune.com.