Leading by Example: Why Executive Engagement Matters in AI

Organisational change has always flowed from the top. Whether shifting strategy or

adopting new systems, visible leadership sets the tone. AI is no exception.

Yet too many leaders endorse AI from a distance—supporting initiatives without ever

using the technology themselves. This gap limits understanding and undermines

transformation.

For SME leaders especially, direct engagement with AI is more than educational—it’s

the foundation for successful implementation. Hands-on experience accelerates buy-

in, uncovers practical opportunities, and sets realistic expectations.

Why Leaders Must Engage Directly

When leaders use AI themselves:

• They model adaptation. Teams follow when leaders prioritise learning.

• They build credibility. Firsthand experience makes communication

• authentic.

• They anticipate barriers. Direct use exposes challenges before rollout.

• They uncover opportunities. Leaders see where AI aligns with their context.

• They set realistic expectations. Engagement prevents overpromising.

The Leadership Gap

McKinsey’s 2025 Superagency in the Workplace report is blunt:

“Almost all companies invest in AI, but just 1 percent believe they are at maturity.

Our research finds the biggest barrier to scaling is not employees—who are

ready—but leaders, who are not steering fast enough.”

Employees are adopting AI faster than executives realise. Without visible

engagement at the top, AI risks stalling at pilots rather than becoming a true

capability.

Leading Change, Driving Industry

Meaningful engagement doesn’t require technical expertise—leaders can start with a

single “quick win” application and build from there. Those who engage directly don’t

just improve their own decision-making; they gain the tools to lead change across

their organisations with credibility and vision.

And the effect extends further. Leadership engagement is also a collective

ambition for Australia’s AI industry. When executives experiment and model use,

they create demand that fuels innovation across service providers, developers, and

the broader ecosystem. In this way, individual behaviour becomes a catalyst for

industry-wide capability and competitiveness.