Technological Change Surpasses Economic Concerns as Top Organisational Health Factor, Survey Finds

Dubai: Global leadership advisory firm Russell Reynolds Associates (RRA) has announced the findings of its Global Leadership Monitor H1 2026, a comprehensive bi-annual survey that tracked the views of over 2,700 global business leaders on organisational health and leadership preparedness in the face of external trends.

According to Emirates News Agency, the survey reveals a significant shift in global corporate priorities, with technological change now emerging as the primary factor influencing organisational performance. This is the first time since the survey's inception in 2021 that technological change has overtaken economic concerns. Notably, 63% of global executives identified technological disruption, which encompasses AI, machine learning, robotics, big data, and IoT, as a significant opportunity or challenge in the coming 12 to 18 months. This represents a substantial increase from 32% in 2022, marking a 10-percentage-point rise over the past year.

The survey also highlights that 35% of leaders have already incorporated GenAI into their daily workflows, nearly doubling the adoption rate from the previous year. Despite the optimism surrounding technological advancements, there is an apparent execution gap, with only 51% of leaders confident in their ability to operationalise these technological shifts. This confidence is still higher compared to perceived preparedness for external challenges such as geopolitical uncertainty (32%) and uncertain economic growth (40%).

The report marks a significant shift as uncertain economic growth is displaced from the top of corporate agendas for the first time since 2023. This change is particularly evident in regions like the UAE, where government mandates and infrastructural investments are prioritising digital and AI integration. Earlier in the year, UAE leadership announced plans to transform half of government sectors and services to agentic AI within two years, followed by a Dubai initiative aimed at accelerating AI adoption in the private sector. These initiatives underscore AI's transition from a future consideration to an immediate national priority.

Nicolas Manset, Head of the Middle East at Russell Reynolds Associates, commented on the UAE's rapid technological adoption, particularly in AI. He noted that the government's push for digital leadership is positioning technology as a defining force for organisations in the country. However, he emphasised the challenge of building executive capabilities and board-level governance to navigate these transformations, which will be crucial for achieving long-term success.

Globally, many organisations are still developing the necessary capabilities and governance to fully leverage AI's potential. Only 40% of leaders feel their organisations possess the technical skills, high-quality data, and governance processes required to implement and safeguard AI solutions effectively. Additionally, just 29% believe they have the right board expertise to advise on AI implementations.