AI Strategy Now a CEO Priority Driver

AI is reshaping company strategy fast. While many leaders still view it as a technical challenge, this mindset is holding back its full potential. Treating AI as a central business asset could unlock major growth, but overly siloed teams and lack of prioritisation stand in the way.

Today’s executives are rapidly realising that AI has moved far beyond IT departments and now requires hands-on leadership from the very top. As AI capabilities accelerate year after year, the pressure is mounting on CEOs to integrate these technologies into overall business plans. For many companies, AI may determine their next wave of competitiveness, but without visionary leadership, they risk falling behind.

Despite big investments in AI initiatives, only about 25% actually move into full-scale use. Much of this stems not from poor technology, but from disconnection between data teams and business units. AI initiatives fail when roles, goals and strategies aren’t aligned. Successful companies are shifting their focus toward stronger cross-team collaboration and clearer AI ownership.

The broader trend suggests that AI success doesn’t come from chasing every new tool. It comes from choosing a few areas where AI can make an outsized impact. Many top performers narrow their focus to just two or three high-value use cases, cutting through the noise to build real momentum and measurable returns.

Long-term, CEOs will need to balance internal talent development with strategic outside partnerships. Some AI capabilities should be grown in-house to secure proprietary advantage, while others are better advanced through alliances with specialised startups or vendors. Leaders who orchestrate this mix well will harness innovation faster and more effectively than those relying solely on one approach.

AI is evolving into a defining test of leadership. Lasting success won’t be based on coding skills or tech fluency but on how decisively CEOs steer their organisations through this transformation. The biggest risk now is in waiting too long to act.

Source: The Australian, Gartner, PwC, Kearney.