Technological change has overtaken economic uncertainty as the most significant factor shaping organisational performance for the first time, according to the Russell Reynolds Associates (RRA) Global Leadership Monitor H1 2026.
The biannual survey, which gathered insights from more than 2,700 business leaders worldwide, found that 63% of executives now identify technological disruption—including artificial intelligence (AI), machine learning, robotics, big data and the Internet of Things (IoT)—as the primary opportunity or challenge facing organisations over the next 12 to 18 months.
The finding marks a significant shift in corporate priorities, with concern over technological change nearly doubling from 32% in 2022 and increasing by almost 10 percentage points over the past year alone.
AI Adoption Accelerates Across Organisations
The report indicates that businesses are increasingly integrating generative AI into daily operations.
Around 35% of business leaders said their organisations have fully implemented generative AI into everyday workflows, nearly double the 19% recorded just one year earlier.
Despite widespread optimism surrounding AI's potential, the survey highlights an execution gap, with only 51% of leaders expressing confidence in their organisation's ability to successfully operationalise emerging technologies.
That figure remains higher than leaders' confidence in managing broader external challenges such as geopolitical uncertainty (32%) and uncertain economic growth (40%).
UAE's AI Strategy Reflects Global Shift
The report notes that the shift towards technology-led priorities is particularly evident in the UAE, where government-led initiatives continue to accelerate AI adoption across both public and private sectors.
Earlier this year, UAE authorities announced plans to transform half of government services using agentic AI over the next two years, while Dubai also introduced initiatives aimed at accelerating AI adoption across private businesses.
According to the report, these programmes demonstrate that artificial intelligence has become an immediate strategic priority rather than a long-term objective.
Leadership Capabilities Must Keep Pace
Nicolas Manset, Head of the Middle East at Russell Reynolds Associates, said the rapid pace of AI adoption in the UAE is reshaping leadership priorities.
He noted that while government initiatives have positioned technology as one of the country's defining business forces, organisations must now strengthen executive capabilities and board-level governance to successfully manage digital transformation.
According to the report, only around 40% of leaders believe their organisations currently possess the technical expertise, data quality and governance frameworks necessary to effectively deploy and oversee generative AI solutions.
Even fewer—just 29%—believe their boards have sufficient expertise to provide effective guidance on AI implementation.
Strategic Thinking Emerges as Key Leadership Skill
While technology literacy is increasingly important, the survey found that strategic thinking remains the most sought-after leadership capability.
More than half (55%) of respondents ranked strategic thinking as the most critical skill required to navigate today's organisational challenges, significantly ahead of change management, which was selected by 31% of executives.
The report also found growing demand for leadership qualities such as judgement, adaptability, prioritisation and long-term decision-making as organisations integrate AI into business operations.
Talent Mobility Continues to Rise
The survey highlights continued movement among senior professionals, with nearly two-thirds of leaders indicating they are open to changing employers, an increase from the previous year.
Among next-generation leaders, 86% said they want to take on greater responsibilities within the next two to three years, while 67% aspire to reach C-suite leadership positions.
However, only 29% believe those career ambitions can be realised within their current organisations, suggesting that many companies may face increasing challenges in retaining leadership talent as digital transformation accelerates.
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