AI Leadership: Why SME Leaders Must Engage Directly to Drive Change
Organisational change has always flowed from the top. Whether shifting strategy or adopting new systems, visible leadership sets the tone. AI adoption is no exception.
Yet too many leaders endorse artificial intelligence from a distance—supporting initiatives without ever using the technology themselves. This gap limits understanding and undermines transformation.
For SME leaders, direct engagement with AI technology is more than educational—it’s the foundation for successful digital transformation. Hands-on experience accelerates buy-in, uncovers practical opportunities, and sets realistic expectations.
Why Leaders Must Engage Directly
When leaders actively use AI, they drive meaningful business transformation and inspire confidence across teams.
They model adaptation. Teams follow when leaders prioritise learning and experimentation with AI tools.
They build credibility. Firsthand experience makes leadership communication more authentic and trustworthy.
They anticipate barriers. Direct use exposes challenges early, ensuring smoother implementation.
They uncover opportunities. Leaders discover where AI applications align with their specific business context.
They set realistic expectations. Informed AI leadership prevents overpromising and drives practical results.
The Leadership Gap
McKinsey’s 2025 Superagency in the Workplace report is clear:
“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 leadership engagement, AI implementation risks stalling at pilot stages rather than becoming a true organisational capability.
Leading Change, Driving Industry
Meaningful engagement doesn’t require technical expertise. Business leaders can start small—by experimenting with a single “quick win” application—and build confidence from there.
Those who engage directly don’t just improve their own decision-making; they strengthen their executive leadership and gain the tools to lead organisational change with credibility and vision.
And the effect extends further. Leadership engagement also fuels Australia’s AI industry. When executives adopt AI and share their experiences, they create demand that drives innovation among developers, service providers, and the broader ecosystem.
In this way, AI leadership becomes a catalyst for both company success and national competitiveness—linking personal initiative to collective progress.
