The last few years have been defined as AI’s testing phase. That meant users, including businesses, were just experimenting and trialling with smaller projects. This has been a time for businesses to find out whether AI actually worked before committing fully (money and resources wise) to the tools available.
Today, businesses aren’t entirely ready yet, and research from the Chartered Management Institute shows that many organisations are still struggling with the human side of AI. According to the report, only 12% of managers say they feel very confident managing teams that use AI. It goes down further to 10% when asked about agentic AI systems.
Right now, 68% of the surveyed organisations are still either testing or running early stage pilots. Even though 70% of managers say they see improvements when it comes to productivity, only 5% say those improvements have been transformational and 26% say they see no improvements at all.
What, According To This Report, Is The Issue?
The biggest issue seems to be leadership with the CMI finding that 64% of senior leaders encourage experimentation with AI. But, only 13% of them strongly agree that those leaders actively use the tools themselves.
Jacky Wright, former Chief Technology and Platforms Officer at McKinsey and Chair of the CMI AI Advisory Council, said, “The UK has a major opportunity to lead globally in AI adoption, innovation and productivity growth. Businesses are already investing at pace, but technology alone will not deliver transformation.
“The organisations seeing the greatest success are those investing equally in leadership, culture and workforce confidence. AI adoption is not just a technical challenge, it is a management challenge.”
What Exactly Is Holding Businesses Back?
The CMI report says the that tech is no longer the issue here because of leadership skills, workplace culture and management capabiity taking over as the bigger problems.
Ann Francke OBE, Chief Executive of the Chartered Management Institute, said, “British firms are not lacking ambition on AI. Across the economy, organisations are investing heavily because they recognise the enormous opportunity AI presents for growth and productivity.
“But there is a real risk the UK falls short of that opportunity if organisations fail to equip managers with the skills and confidence needed to lead change effectively. Britain cannot become an AI leader if leadership capability itself is left behind.”
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Lorna Willis, Chief Executive of TechSkills, believes the demands on leaders are changing quickly, saying, “AI is reshaping not only how organisations operate, but what leadership itself looks like. As technology evolves rapidly, the need for clear, confident and human-centred leadership becomes even more important.
“In the AI era, technical expertise alone is not enough. The leaders who succeed will be those able to communicate clearly, build trust, encourage curiosity and help people adapt confidently through change.”
Has The Pilot Phase Ended Or Not?
Another study says something very different about where large organisations are today. AI Infra Summit’s study on C suite and VP level executives from Fortune 500 and Fortune 1000 companies found that 95% said AI has already moved way past the pilot phase within their organisations. The participants represented companies such as Amazon, Dell Technologies, FedEx, Hitachi, Lenovo, MasterCard, Mercedes-Benz, Wayfair and Zoom.
The survey also found that 40% said AI has already been embedded into their organisation’s core products and strategy.
Ed Nelson, Strategy Director and Co-Founder of AI Infra Summit, said, “The tone at the recent CEO event was positive – Fortune 500 and 1000 leaders were very bullish on the potential of AI and that it was nowhere near its peak.”
Nelson also said, “Some leaders were discussing how AI has already saved their organisations hundreds of millions of dollars. The consensus was that high-level discussions have moved on from whether AI works to understanding how agents can be used effectively. It was agreed that the real transformational benefits of AI will go beyond augmenting existing roles, to re-designing work to make it AI-native.”
So, What’s Next If AI Is No Longer In It’s Testing Phase?
It’s no longer a question of whether AI can be used because now, it’s about how organisations should rebuild work around it.
The AI Infra Summit survey says 75% of C suite leaders believe agentic AI is either living up to expectations or being underestimated. 52% expect team sizes either to grow or stay the same during the next three years, including 14% who expect headcount growth.
Nelson said, “At the event, the leaders were divided on what the future of work would look like. No one doubted the capabilities of AI, and they said that we are nowhere near the peak of its potential. Now the big question for them is how to transform their organisations for the AI era. Work will fundamentally have to be redesigned but the major blocker to this is the organisations themselves – it’s less about the technology, but rather their people and culture.”
Maybe both perspectives may give a clue on the next chapter of the AI story: many organisations have already decided that AI works, but the bigger task now is preparing managers, employees and workplace culture for what comes after the pilot phase. In other words, AI is here to stay (it seems), and it’ll be about how businesses improve on how they use it.
