AI transformation is no longer simply a matter of adopting technology but has become a test of leadership, IT outlet TechRadar said on Aug. 11 local time. Companies are rapidly adopting generative AI and are seeing the potential for higher productivity and lower costs. But they are also facing side effects such as staff resistance, hard-to-predict AI behaviour, higher-than-expected usage costs and trust problems. It comes down to how leaders drive AI and embed it in their organisations, rather than the technology itself, the outlet said.

A recent UK CEO survey by PricewaterhouseCoopers (PwC) found 98 percent of respondents expected major changes to their business or operating model this year, and 93 percent said they had already adopted generative AI to some extent. But only 14 percent of UK business leaders said generative AI improved profitability over the past year. That indicates there is still a wide gap between AI adoption and commercial performance.

Many companies have found it relatively easy to get through AI experiments and early adoption, but the real difficulty begins after that, the outlet said. Pilot projects tend to succeed because they are limited in scope, carry low risk and are backed by enthusiastic teams. But once AI starts affecting real work flows, decision-making, customer experience and employee roles, coordination across the organisation is needed. At this stage, the IT department alone is not enough. Management must set priorities, redesign work methods and strengthen training and management capabilities.

In particular, transformation is difficult if companies only tack AI onto existing work processes. For example, it is an easy win for a sales team to use AI to summarise call contents, but the more important question is what to do with the time saved. The key is how to improve follow-up, strengthen customer relationships and turn accumulated information into insights. AI becomes a tool for transformation only when the technology is linked to how a company creates value.

Trust is also emerging as a key commercial issue in AI transformation. A Pipedrive survey found 55 percent of the public do not fully trust AI. Customers and employees need to know where and why AI is used and which decisions still require human judgement. Customer communications produced by AI must be properly supervised, and responses that feel inaccurate or inhuman can undermine trust.

Internally, clear guidelines and training are also needed so employees accept AI as a tool that supports their work rather than a threat to replace them. Without transparency, judgement and consistent communication, AI transformation can increase organisational distrust rather than boost productivity. In the AI era, the companies that deliver results are not those that adopt the most AI, but those where leaders distinguish between work that technology should change and human judgement that should remain, build trust and drive continuous change.