A consensus is emerging that generative artificial intelligence (AI) will change everything — the way we work and the way we live — and employers will have no other choice but to step up to the plate and lead the transition. Indeed, no other contemporary phenomenon is likely to have as much impact both globally and individually. “A megatrend with systemic, existential implications,” according to PwC. Generative AI is “poised to transform business models, redefine work processes, and overhaul entire industries.”

The big question: Are leaders ready to step up? Newly released research from Udemy on the unfolding revolution in generative AI presents a sobering reality: Though focused, strategic leadership is viewed as essential by 88% of those surveyed, most employees and many leaders themselves believe business leadership is falling short of what is required to successfully navigate a generative AI transformation.

Navigating Challenges and Opportunities

In January 2024, Udemy conducted a comprehensive survey of 2,500 business executives and their employees at organizations both large and small to better understand how leaders are meeting the opportunities and challenges that generative AI presents. According to a new report by Udemy, “The GenAI Transformation: Perspectives on Leadership,” data shows people working at every level are concerned about the readiness of their business leaders, and how their organization will fare in the current transition.

Successfully navigating this transition will drive plenty of good, including increases in efficiency, innovation in the ways products are developed and delivered, and improvements in the ways in which teams collaborate and grow. Beyond the good that emerging generative AI technologies can drive, there are also very real, very substantial downside risks that must be understood, managed and mitigated.

Given all this, focused leadership will be critical. Yet, the data show widespread concern about whether today’s business leaders are up to the task.

There are three key issues driving this pessimism in organizations:

1. First, many executive leaders aren’t inspiring confidence — in their senior leaders, in their middle managers and throughout the organization.
2. Second, middle managers feel they don’t have the knowledge, skills and abilities to implement change management strategies at the tactical level.
3. Finally, teams are feeling vulnerable 1 that they are at risk of losing jobs — instead of believing that generative AI can be a tide that will lift all boats.

To overcome these impediments, organizational leaders, and especially leaders in human resources (HR) and learning and development (L&D) functions, should prioritize generative AI skill building at every level of the organization that simultaneously addresses gaps in knowledge and fear of the unknown. Making this investment will help employees and their leaders build confidence and resiliency as they become better enabled to implement strategies at a tactical level.

More importantly, however, organizations must invest in the professional skill building for their leaders in two key areas that go beyond the technical:

1. Change Management: Organizations must ensure that those in charge of strategy have the skills necessary to develop a vision for change. Providing a clear blueprint for how an organization will build a future with generative AI at its center, and then incorporating these strategies into objectives and key results (OKRs) and key performance indicators (KPIs) together with regular progress reports, will give employees the confidence that their leadership not only has a plan, but also is faithfully executing it.
2. Communication: Inspiring confidence requires inspirational leadership, and that starts with strong communication skills that build trust. Stating (and restating) strategy; articulating how strategy is being translated to tactics; reinforcing commitments to help everyone in the organization adapt to fundamental changes in the ways we work; and ensuring transparency into how AI tools will be used and the outcomes they can help to achieve will accelerate adoption and inspire continuous improvement.

Increasingly, generative AI initiatives are a top strategic organizational priority, with BCG finding that 89% of executives rank AI and generative AI as a top three tech priority in 2024, and 85% reporting that they will increase their spending on these technologies this year. This means the changes we’re discussing aren’t in some distant future: They’re happening now.

It is essential to prepare every stakeholder in your organization for a promising new economy and new ways of working, all powered by generative AI. Addressing skills gaps — both technical and non-technical — will not only prepare your people for the seismic shifts ahead, but eliminate the fear, uncertainty and doubt that change inevitably brings.

Focused, effective and sustained leadership will be key in all of this.