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Effective leaders report that having the right culture for their organization is essential to effective AI adoption. Recent discussions with board members and senior leaders regarding AI adoption increasingly focus on the role of culture. As this space has reported, studies suggest many companies are not achieving the desired return on investment from AI projects. Effective leaders report that having the right culture for their organization is essential to effective AI adoption. They also report that though culture change does not happen quickly, it impacts outcomes. According to the National Association of Corporate Directors’ (NACD) 2025 Trends and Priorities Survey, three of the 10 top director’s trends involve technology. In WTW’s most recent Emerging and Interconnected Risks Survey, executives worldwide listed AI risk as the top risk of 752 emerging risks. Types of culture that drive effective AI adoption A number of studies suggest five cultural elements can make AI adoption more effective: Culture of purpose – WTW’s Max Wright and Asumi Ishibashi recently noted that those with skills in AI, machine learning and cybersecurity are the most difficult talent to attract and retain, according to the WTW Global Artificial Intelligence and Digital Talent (AIDT) Compensation and Trends Report. Other scarce skills are in cloud computing, data science, business intelligence, augmented reality and autonomous vehicles. According to the study, the top factor in retaining those with such critical skills in North America is whether those individuals believe they have a real impact on the organization’s performance. In EMEA and APAC, the top factor is interesting, challenging and varied work. Effective leaders have long understood that purpose serves as the leadership glue that drives constancy in company culture while business models and daily operations transform. This also holds true during AI adoption. Culture of learning – When it comes to innovation of any kind — including AI — leaders increasingly point out the importance of continuous learning, learning from failure and incorporating lessons into future action. To many, this is shifting the concept of failing fast to learning fast. Continuous learning and failing fast create the backbone of agile solution development, where the goal is to make small iterations on a solution and test them with users. The same concept applies to AI innovations, which now come even faster, with a dizzying pace of real-time iteration. Effective leaders recognize that people are at the center of innovation and that innovation in AI can create both growth and value in any environment – if used properly. These leaders embrace a culture of learning through a mindset that encourages study, training, safe experimentation and sharing learnings broadly across the organization so that others can learn from them. Effective leaders create a culture where teams enjoy the space to learn and apply those learnings as an iterative part of the AI adoption process. Culture of risk management – While a culture of learning is key to effective AI adoption, so is a culture of risk management, which ensures that experimentation and learning are conducted safely and responsibly. As covered previously in this space, effective leaders have shifted from traditional risk management protocols to more dynamic and responsible governance models for managing AI’s growth across industries and applications. Classical rules-based governance structures and processes often fail to address AI’s unique challenges and opportunities and cannot keep pace with rapid advancements. Effective leaders adopt guiding principle-based governance practices that enable their organizations to benefit from AI technologies while reducing risks and increasing trust and accountability. Effective leaders increasingly employ “responsible AI” – the process of developing and operating AI systems that align with organizational purpose and values while achieving desired business impact. Responsible AI governance models are flexible and responsive, including mechanisms for regular updates, feedback loops and continuous improvement. Corporate director Dr. Helmuth Ludwig and professor Dr. Benjamin van Giffen described in their recent NACD report that these models increasingly include four elements: firm strategy and competitiveness,capital allocation, AI risk, and AI technology competence. Effective leaders embrace a culture of risk management that specifically addresses AI, adapting to internal and external changes while remaining effective and relevant in both the short and long term. Culture of engagement – WTW’s Jorge Coelho, Jill Havely and Richard Veal recently wrote that AI is not just transforming jobs, it is reshaping what employees value, how they work, how they add value and what they expect from their employers. Given current levels of employee concern about AI and its potential impact on their jobs, income and careers, the most effective organizations routinely communicate with employees about changes, listen to their concerns, and respond appropriately. Leaders at these organizations seek to understand and aspire to what the next level of value talent will create, setting an aspirational vision that excites employees about the future and reduces anxiety. As generative AI, agentic AI and automation redefine the workplace, organizations face a critical question regarding employee engagement and their employee value proposition. The most effective propositions align with organizational purpose, foster belonging, inspire employees, help them feel supported and enable them to be resilient in periods of organizational growth and challenge. They also focus on skills of the future (and how to acquire them), career development and responsiveness to disruption, simultaneously focusing on the human experience. Culture of innovation – Effective leaders create a culture of innovation that supports AI adoption, seeing the big picture while managing details. They consider and prepare for multiple scenarios. They understand and manage complexity, ambiguity and paradoxes while balancing opposing views. They build teams that have the mindset, culture and portfolio of ideas to support change. WTW’s Amy DeVylder Levanat and Oliver Naraway recently covered what sets successful organizations apart when it comes to innovation. Effective leaders promote change and experimentation, encourage discussion, recognize employee ideas and lead by example to drive innovation and adaptability. They create a culture of trust and foster a collaborative environment by promoting open communication and idea sharing and by valuing multiple perspectives. By integrating different perspectives, they understand problems deeply and develop viable AI solutions. While some leaders are paralyzed by the pace of change and the perception that they need to accurately predict and address all strategic questions at once, many effective leaders are embracing small but continual steps forward while learning, adjusting, adapting and creating the future. Editorial StandardsReprints & Permissions
