In the business world, we hear so much about AI that it feels like it’s completely dominating the agenda. Organisations are increasingly investing in new AI platforms, redesigning workflows, and looking for innovative ways to unlock productivity and growth.
But there is a question too few leadership teams are asking: are we transforming the AI technology, or are we transforming the organisation?
I recently joined Staffbase for a conversation with Australian business leaders about the findings from its inaugural Executive Priorities for the Next Digital Workplace Era 2026 research. The research, conducted by Manning & Co. with fieldwork by Staffbase, surveyed 104 Australian senior executives and examined how leaders are approaching AI, digital transformation, the employee experience, and the future of work in 2026 and beyond.
What stood out to me was not the pace of AI adoption; it was the gap between the ambition for AI and the organisational foundations needed to make that ambition successful.
And, ultimately, success comes back to people.
AI transformation starts with a clear vision
One of the biggest reasons AI transformation fails to deliver its business case is surprisingly simple: there isn’t a clear, coherent enterprise-wide vision for what the organisation is trying to achieve. Or perhaps that vision hasn’t been effectively communicated to the people responsible for delivering it.
You can have the best technology in the world. But if your people don’t understand where you’re going, why you’re going there, and what it means for them, you won’t unlock true value fromfrom the investment.
That’swhy I believe AI transformation is ultimately a people-led transformation. The Staffbase research reinforces this tension. Digital transformation was identified as the number one strategic priority for Australian leaders over the next 12–18 months, at 18%, followed by revenue growth at 14%.
And yet, people and culture ranked at just 6%, while change and agility accounted for only 2%. That is a significant disconnect between AI ambitions and the reality of employee engagement on the ground.
We’re asking organisations to navigate one of the biggest technological transformations in business history. Yet the disciplines that help people navigate AI and digital transformation remain relatively low on the executive agenda. That is a significant risk.
The problem isn’t just AI adoption. It’s AI maturity.
Australian businesses are clearly moving quickly to adopt AI. But adoption alone doesn’t equal lasting transformation.
The research highlights a maturity gap: while some organisations are scaling AI across functions, many are still experimenting, or implementing piloting initiatives, with only a small proportion fully embedding AI into their operations.
This juxtaposition matters because AI can’t be treated as just another technology implementation. AI touches everything from people to data, decision-making, risk, culture, and how an organisation operates day-to-day.
Yet AI governance is often following by adoption – rather than shaping it. That is a concern. If organisations introduce AI before establishing the right governance, accountability, and workforce considerations, they risk creating problems they then must work backwards to solve.
We need to move from reactive AI governance to proactive AI leadership. The organisations that get this right won’t necessarily be the ones that adopt AI the fastest. They will be the ones that know how to scale it responsibly, govern it effectively, and bring their people along on the journey with them. That’s where the real competitive advantage will emerge.
We’re seeing an accountability gap at the top
Staffbase’s research also raises an uncomfortable question about how we measure leadership success.
Analysis of ASX 100 Executive Scorecards found that financial metrics account for approximately half of the measures used to assess executives, while people and culture received a much smaller weighting. The average weighting for people and culture was just 11%.
There is nothing wrong with holding leaders accountable for financial performance. Of course they should be. The issue is that we’re asking leaders to deliver profound organisational change through AI while still measuring success predominantly through a financial lens.
I’ve spoken with CEOs who are under enormous pressure to demonstrate a return on their AI investment. And when productivity becomes the primary measure, the fastest way to show financial impact can look like reducing headcounts. That’s where the risk lies.
The organisations that outperform their competitors won’t necessarily be the ones that replace most people with AI. In contrast, they’ll be the onest unlocking value through AI-human augmentation.
How effectively are leaders redeploying people into higher-value work as AI takes on routine tasks? For me, that is a future leadership metric worth considering: workforce value creation. How effectively are we using technology to elevate our people, rather than reduce their numbers?
Communication must become part of the transformation infrastructure
This brings me to one of the most important themes from the research: the power of communication.
It’s easy to think of communication as the mechanism leaders use to announce a transformation. But in an AI-driven workplace, that isn’t enough. Employees don’t experience an AI strategy document. They experience what their manager tells them, how their role changes, what support they receive, whether they understand what’s happening, and whether they feel safe asking questions.
That means communication must move beyond: Tell → Cascade → Finish
And towards: Tell → Listen → Adapt → Communicate again.
The strongest organisations are not necessarily communicating more than others. They’re just communicating differently. They’re building communication systems rather than simply running communication campaigns. And leadership plays a critical role in that system. It isn’t enough for a CEO to communicate the strategy once. Leaders and managers need to translate that strategy into the everyday employee experience.
This is particularly important when it comes to AI adoption. Employees are already telling us what concerns them about AI. In the Staffbase research, job insecurity was the leading concern around AI, cited by 29% of respondents; followed by data and privacy concerns, for 24% of people. Another technology deployment can’t solve these pressing employee doubts and concerns. Solutions require strong leadership; transparency of communication; education about the ‘why’ of the AI transformation; and trust in project and organisational vision.
We need to stop treating people and technology as separate conversations
A very strongmessage I took from the research and our webinar conversation is that technology doesn’t operate independently of culture.
If your people management is weak, introducing AI won’t solve it. In fact, it may expose it.
If employees don’t trust leadership, AI will amplify that mistrust.
If communication is fragmented, AI will accelerate the confusion.
If teams work in silos, AI won’t magically create alignment.
And if people don’t understand why a transformation is happening, no amount of technology will make them embrace it.
That’s why I strongly agree with the view shared during our webinar conversation: that AI transformation should be treated as an enterprise-wide change agenda, not something owned exclusively by IT.
AI governance needs to consider technology, certainly. But it also needs to consider people, policies, communication, risk, culture, and capability.
Leadership is being compressed by the pace of change
So, why are so many organisations still operating reactively with AI?
Part of the answer to this question is the sheer amount of change leaders are being asked to absorb. We’re navigating geopolitical uncertainty, economic pressure, technological disruption, changing workforce expectations, and generational shifts, with AI accelerating almost all of it.
I call this phenomenon ‘leadership compression’. Leaders are being asked to make decisions faster, across more areas, and to do so often outside their traditional expertise.
When you’re operating under that level of pressure, short-termism becomes a natural response. You solve today’s problem rather than building the capability you need for tomorrow. And that is exactly what I worry about with AI.
Businesses are experimenting with AI already. They’re trying to catch up. They’re under pressure to demonstrate ROI. They’re trying to work out what AI means for their operating models going forward.
But what gets squeezed out? People. Communication. Change management. Leadership capability.
The Staffbase research found that only 6% of executives identified people and culture as a top strategic priority, while change and agility ranked at just 2%. For me, that is one of the most significant findings in the report. We’re going through an enormous transformation, and change management is barely on the executive agenda.
The organisations that invest in people will be better positioned to win
However, there’s a reason to be optimistic.
Staffbase’s ASX 100 analysis in the report found a strong correlation between organisations that prioritise people and culture and those unlocking stronger financial outcomes. Companies that exceeded their people and culture targets achieved an average annual revenue growth of 17.2%, compared with 5.7% across the ASX 100 overall.
Correlation does not prove causation, but the finding should prompt leaders to pause and think. People and performance are not competing priorities. The human side of digital transformation isn’t something we can afford to address after implementing the technology itself. It must be embedded in the business case and planning.
The future workplace won’t belong to the organisation that automates the most. It will belong to the organisations that understand how to combine technology with human capability, data with judgement, and transformation with trust.
That means leaders need to become more visible, not less.
More human, not less.
More transparent, not less.
So, be willing to bringing your people into the conversation about what comes next. Because ultimately, AI won’t be what transforms your organisation. People will. Technology can amplify what your people and organisation can achieve. But whether that amplification creates growth, innovation, and competitive advantage –or fear, disengagement and resistance – comes down to your leadership.
Organisations that recognise this now will be best positioned for whatever comes next.
About the research
Executive Priorities for the Next Digital Workplace Era 2026 is Staffbase’s inaugural Australian C-level research report about workplace trends. Manning & Co. conducted the research, with fieldwork led by Staffbase, to draw on the views of 104 Australian senior executives across a diverse range of industries.
The in-depth research explored key business priorities for executives today, from AI adoption and governance toemployee engagement, communication styles, leadership strategies, and the future of digital workplaces.
Read the full Staffbase report to explore the research and findings in more detail.
