Leadership gaps can stymie digital transformation

Executives prioritise digital transformation but face cultural and strategic barriers.

While 61% of top executives in Ireland identify digital transformation as a strategic priority, many organisations continue to struggle with its implementation due to gaps in leadership, organisational culture, and employee engagement.

That’s according to a new independent survey conducted by TEKenable among 700 executives across Ireland.

“Business transformation using AI and data is not about adopting new technologies; it’s about fundamentally changing the way companies operate, from how they interact with customers to how they manage their supply chain”

The survey revealed that 71% of respondents consider business transformation to be “very important” to their organisation. The primary drivers cited were technical advancements and internal strategic goals (both at 25%), followed by regulatory changes (20%) and customer demand (16%).

Complexity of execution

Peter Rose, group CIO at TEKenable, said the findings reflect a strong appetite for change but also highlight the complexity of execution.

“Our survey showed that managers consistently rated business transformation as very important (75%) and exhibited high confidence in achieving transformation goals, with half reporting they were ‘very confident’,” he said.

Medium-sized organisations, defined as those with 201 to 500 employees, represented 24% of the sample. These firms placed a high value on business transformation, with 75% citing regulatory changes and internal strategic goals as equally important drivers.

Smaller organisations, comprising 47% of the sample, were less likely to adopt artificial intelligence technologies. Among those that did, the focus was primarily on cost reduction (24%) and improving customer experience (59%).

Overall, only 29% of respondents reported active AI usage within their organisations. Among those using AI, 60% were in C-suite or director-level roles. The most common applications included customer insights, analytics, and predictive maintenance.

Respondents from finance and technology sectors—accounting for 41% of the sample—were more likely to report AI adoption. These sectors prioritised innovation (47%) and data-driven decision-making (29%).

Industries grouped under “other,” including energy, government, insurance, NGOs, and logistics, showed moderate AI adoption. Their focus was largely on updating legacy systems (41%) and improving application security (41%).

Despite the relatively low adoption rate, executives expressed cautious optimism about AI’s potential. Rose noted that informal usage may be more widespread than reported.

“It is our experience that many of the responding companies’ staff are probably using AI tools and services in their day-to-day business without approval from, or the knowledge of, their employer. Hence, the company is using AI but not in a governed manner. This is a risk and a missed opportunity,” he said.

Rose added that successful transformation requires more than technology adoption. “Business transformation using AI and data is not about adopting new technologies; it’s about fundamentally changing the way companies operate, from how they interact with customers to how they manage their supply chain.”

Top photo: Peter Rose, Group CIO at TEKenable

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