The State of Generative AI (GenAI) and its Implications for Business Leaders

The State of Generative AI

GenAI is the year’s buzziest technology. But are leaders actually embracing it?

While there’s a lot of hype around generative artificial intelligence (GenAI), most leaders are still experimenting with these tools. Only a minority are using GenAI in their day-to-day workflow.

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

Not only are leaders at varying stages of the GenAI implementation journey…

…they are also approaching implementation in different ways.

%

are evaluating internal capabilities

%

are looking at the legal risks

%

have established internal policies

%

are creating new roles to drive the development of GenAI tools

%

have appointed a Head of AI (or similar role)

%

are engaging in workforce reductions

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

Ultimately, GenAI implementation isn’t just about adopting the right tech.

It’s about having the right leaders—with the right capabilities—at the helm.

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

While 72% of leaders agree that a strong understanding of GenAI will be a key skill for future C-suite members…

… only 32% are confident they have the right skills to implement GenAI in their organization.

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

Lack of knowledge and expertise was cited by

%

of leaders as a barrier to implementing GenAI, making it the #1 concern.

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

So, how can organizations navigate the next tech leap? Look to your next generation of leaders.

37% of next-generation leaders are confident that they have the right skills to implement GenAI…compared to 26% of CEOs.

Give them the power to experiment and pilot projects.

Next Generation

37%

C-Level

34%

Board Director

28%

CEO

26%

Source: Russell Reynolds Associates’ H2 2023 Global Leadership Monitor

The State of GenAI

Want to know more about GenAI and its implications for leaders?

Take a deeper dive into our GenAI research.

The Rise of AI: Implications for Leadership

Leadership Lounge—How Can Leaders Succeed in a GenAI-driven World?

Navigating the GenAI Revolution: Five Key Focus Areas for Leading into the Future

How we help leaders harness GenAI’s potential

We’re well-versed in guiding organizations through change. Whether it’s finding leaders who can fast-track AI implementation, or advising organizations on how to align your top team to pilot new projects and embrace innovation, our leadership advisors will help you look to the future with confidence.

About the Global Leadership Monitor

The Global Leadership Monitor is a global survey of boards, CEOs, CXOs, and next-generation leaders that tracks key threats to organizational health and leadership preparedness to face them.

View our Methodology