Is AI transformation colliding with outdated leadership structures? A recent study by Pearl Meyer says yes. Data from 108 respondents (40 public companies, 58 private companies, and 12 not-for-profit/government) shows that governance gaps in succession planning, change management, and AI implementations are causing disagreement between the board and management.
The disconnect: Organizations are investing in AI faster than they are forming leadership systems around it. If teams cannot get on the same page, efficiency gains may stall.
- 90% of directors said AI management is a C-suite issue, but only 48% of those executives admitted to having a clear understanding of AI’s business implications.
- C-suite leaders cited competing priorities (59%), legacy processes (56%), and limited decision-making clarity (37%) as key barriers to operationalizing AI.
- The sharpest disconnect was between the Board (100% vs. 64%) and C-suite (78% vs. 54%), where confidence in decision-making exceeded enterprise-wide communication around AI initiatives.
The most advanced organizations are no longer treating AI as a technology deployment. They are treating it as a leadership coordination exercise.
For CHROs, that means shifting the mandate considerably so that AI governance, capital allocation, and operating structure are all part of one conversation.
