Technological change has emerged as the biggest factor shaping organisational health, overtaking economic uncertainty and other external pressures, according to a new global survey by Russell Reynolds Associates.
The leadership advisory firm found that executives increasingly view artificial intelligence, automation and other emerging technologies as central to business performance. However, many leaders still lack confidence in their ability to turn technological change into effective action.
The findings come from Russell Reynolds Associates’ latest biannual Global Leadership Monitor, which surveyed more than 2,700 business leaders on leadership preparedness and the forces affecting organisational health.
As AI adoption accelerates across the UAE and Saudi Arabia, the ability to combine technological understanding with strategic judgement, change management and strong governance could become a key differentiator for business leaders.
Technology disruption takes centre stage
Nearly two-thirds, or 63%, of executives identified technological disruption as a major opportunity or challenge over the next 12 to 18 months.
This marks a sharp rise from 32% in 2022. Moreover, the figure increased by almost 10 percentage points over the past year alone.
The survey covers technologies including artificial intelligence, machine learning, robotics, big data and the Internet of Things.
At the same time, companies are moving faster to adopt generative AI. Around 35% of leaders said their teams had fully integrated generative AI into daily workflows. That is almost double the 19% recorded a year earlier.
However, adoption has not eliminated the leadership challenge.
Only 51% of respondents said they felt confident about their ability to operationalise technological change. Still, leaders reported greater preparedness for technology than for geopolitical uncertainty, where confidence stood at 32%, and uncertain economic growth, at 40%.
Strategic thinking remains the most important leadership skill
Despite the rapid rise of AI, business leaders continue to place strategic thinking above technical expertise.
More than half of respondents, or 55%, ranked strategic thinking as the most in-demand capability for addressing the major factors affecting organisational health.
Change management ranked second at 31%, creating a significant 24-percentage-point gap.
The findings suggest that companies need more than technology specialists. Instead, leaders increasingly require the ability to assess complex situations, prioritise competing demands and make long-term decisions.
Russell Reynolds Associates also found that the growing influence of AI is increasing the value of human judgement.
As technology takes over more routine tasks, organisations are placing greater importance on adaptability, judgement, prioritisation and long-term thinking.
UAE leaders face an AI execution challenge
In the UAE, technological change has moved ahead of uncertain economic growth on the corporate agenda.
The shift reflects the country’s rapid adoption of AI and its wider push for digital transformation across government and business.
“The pace of technological adoption in the UAE, particularly when it comes to AI, is staggering,” said Nicolas Manset, Head of the Middle East at Russell Reynolds Associates.
“The government’s push for global digital leadership makes technology one of the defining forces facing organisations in this country.”
The UAE has also accelerated its focus on agentic AI. Earlier this year, the country’s leadership announced a framework to transform half of government sectors and services using agentic AI over the next two years. Dubai has also launched an initiative to speed up the technology’s adoption in the private sector.
Manset said these developments have changed the urgency surrounding AI adoption.
“These initiatives send a clear signal that AI is no longer a future consideration but an immediate national imperative,” he said.
“The pressing challenge, as shown by our survey, is building the executive capabilities and board-level governance necessary to guide organisations through this transformation.”
The findings point to a clear challenge for UAE organisations. While technology adoption is accelerating, leadership capabilities and governance structures must keep pace.
Saudi Arabia accelerates digital transformation
Saudi Arabia is seeing a similar shift as AI and advanced technologies become increasingly important to economic diversification and business growth.
The Kingdom continues to pursue partnerships and investments that support AI development and digital transformation under Vision 2030.
“In Saudi too, the pace of technological adoption is staggering,” Manset said.
“Vision 2030 defines a very clear expectation that digital transformation and AI are not the future, but expectations for the here and now.”
He added that business leaders increasingly recognise that long-term relevance and resilience depend on integrating digital technologies with a clear strategic purpose.
Talent mobility remains high
The survey also highlighted continued movement among senior talent.
Nearly two-thirds of leaders said they were open to moving beyond their current employer. This represented a 5% increase since the first half of 2025.
Meanwhile, next-generation leaders are showing strong ambitions for career progression.
Around 86% said they wanted to take on greater responsibilities over the next two to three years. In addition, 67% said they hoped to become a C-suite leader in the future.
The findings underline a broader shift in the leadership landscape. Technology is changing how organisations operate, but it is also changing what companies expect from their leaders.
As AI adoption accelerates across the UAE and Saudi Arabia, the ability to combine technological understanding with strategic judgement, change management and strong governance could become a key differentiator for business leaders.
