95% of leaders expect AI to boost productivity, but 80% say they lack the capabilities to lead through it.
London – March 2026
New research of 105 UK C-suite leaders shows that while 95% expect AI to significantly increase productivity in their businesses, 80% do not feel they have the strengths and capabilities needed to lead in the AI era.
The research also reveals that 75% of leaders say limited understanding of AI capabilities across teams is already holding back implementation, while 66% consider developing future leaders critical to their organisation’s success.
The findings feature in The Leadership Evolution: Reality vs. Hype of Leadership and AI, a new report by specialist leadership consultancy New Street Consulting Group (NSCG).
The report reframes the conversation around AI away from technology adoption and towards a more fundamental question of whether today’s leaders are equipped to keep pace with the possibilities, challenges and opportunities it presents.
AI is no longer an experiment running alongside the business, according to the new insights. It is becoming embedded in the fabric of how organisations operate – in workflows, decision-making and customer journeys – demanding a new model of leadership. While leaders are candid about the distance between where they are and where they need to be, the research also finds them energised and realistic about what it will take.
Doug Baird, CEO of New Street Consulting Group, says: “Our research highlights that leaders are grasping the reality and potential of artificial intelligence. New leadership models for AI-assisted ways of working are emerging – with leaders accepting and embracing a new reality that they must be rewired to adapt with the AI platforms and systems around them.”
The report sets out five shifts that define how forward-thinking leaders are responding to the AI era:
1. Orchestrating leadership: shifting from individual decision-maker to architect of socio-technical systems that combine people, AI tools, workflows and accountability.
2. Recognising AI’s role: acknowledging non-human input as part of the talent picture and enabling productive human-AI collaboration rather than competition.
3. Trusting AI: treating trust as an operational discipline, embedding governance and accountability into everyday workflows rather than relying on policy alone.
4. Realigning the psychological contract: rethinking how organisations recognise, motivate and engage people as the nature of work itself changes.
5. Closing the workflow gap: redesigning team composition and workflows around how work actually happens, so AI investment translates into sustained performance gains.
The report features a talent management viewpoint from Holly Quincey, whose career includes more than 25 years developing high-performing leadership, most recently as Chief Talent Officer at Lloyds Banking Group, where she was part of the executive team driving practical AI adoption across the organisation.
Holly Quincey comments: “Human interaction must form a critical part of any effective AI strategy. Leaders need to look at how they can create augmented workforces, where human intelligence overlays new technologies. Critical, strategic thinking and judgements made by leaders will help to get the best out of AI – building cross-functional teams that enable organisations to run faster, while keeping customers at the heart of everything they do.”
Concluding, Cise Kilic, Director of Leadership Consulting at NSCG, adds: “Strategic shifts in leadership are happening to take control of the opportunity presented by AI, rather than simply letting the power of technology dictate the future direction of organisations. Leaders are prepared to challenge themselves to find solutions for harmonising AI, people and processes – deploying new platforms in the most effective and responsible way.”
The Leadership Evolution: Reality vs. Hype of Leadership and AI is available to download now.