AI readiness isn’t about AI – it’s about leadership

As significant investments are made globally to establish the AI infrastructure of tomorrow, it is increasingly evident that genuine differentiation extends beyond data centre expansion or computational power. It's the preparedness of leaders that sets organizations apart. Cisco's 2025 AI Readiness Index provides a comprehensive perspective on essential readiness factors: purpose-driven strategy, data fluency, responsible governance, advanced skills development, and a trust-based organizational culture. These elements reflect critical human capabilities, which remain underdeveloped in many organizations. Only 13% of companies, designated as "Pacesetters", demonstrate full preparedness and derive substantial value from AI. The progression of the AI revolution underscores a central reality: Technology alone does not distinguish Pacesetters; effective leadership does

Pacesetters offer lessons for all of us. Their leaders move beyond old success formulas and redesign work with a bias toward value and possibility. They prioritize learning and make experimentation expected and safe. In Pacesetters, 64% of employees show high receptiveness to AI versus 27% elsewhere; a x2.4 gap. The same holds for change readiness: 91% of Pacesetters have comprehensive change plans compared to 35% of companies overall. For the 87% of organizations that are not Pacesetters yet, the barrier is often leadership readiness for this new way of working.

Across every industry, leaders face one of the most complex management moments in history – evolving themselves, while also guiding their teams through disruption. In this context, leading by example is one of the strongest drivers of positive change. At Cisco, employees are twice as likely to use AI when their manager does; consistent users are more productive, engaged and likely to stay at the company. Gallup shows the same: When employees strongly agree that their manager supports their use of AI, adoption rises.

AI is also requiring leaders to reimagine work. For years, we relied on delegation, but AI changes this. Jobs aren’t disappearing – they’re evolving. Leaders now need to understand the work well enough to know where to automate, augment or redesign. As work becomes fragmented and unfamiliar, people will look to their leaders for direction, clarity and confidence.

AI hasn’t made leadership easier. Instead, it has raised the bar for what great leadership requires. Trust, in particular, matters more than ever. Teams that feel safe to take smart risks are far more likely to innovate. According to the Workplace Options 2025 Psychological Safety Study, organizations that cultivate psychological safety experience up to 50% higher engagement, stronger retention and better business outcomes. Creating trust gives people the stability to learn, experiment and grow.

A recent internal study has given us one of the clearest pictures yet of what helps a workforce grow with AI. While every organization’s journey is different, three actions stood out to us:

Real progress can happen here when we pool our expertise and give leaders a way to direct their teams to intersect their daily work and AI. Our belief that AI is a team sport also builds a muscle that encourages focus on performance, opportunity and measurement.

One of the strongest examples of AI as a team sport is the Cisco-led AI Workforce Consortium, a coalition of 10 technology leaders including Accenture, Cornerstone, Eightfold AI, Google, IBM, Indeed, Intel, Microsoft and SAP. Together, we are helping to build the talent we need for an AI-powered economy. The consortium offers open, practical tools and training for over 50 jobs across the G7 countries. These resources are a great place to start.

Technology will continue to accelerate. Roles will evolve. Entire categories of work will be redesigned. But the most important shift ahead is not technological – it is human. Readiness requires a culture rooted in trust – where experimentation is encouraged, learning is continuous, and people feel equipped for the changes ahead. AI readiness isn’t about the technology. It’s about us.