Artificial Intelligence (AI) is transforming how organisations operate, offering the promise of innovation, efficiency, and a competitive edge. But there’s a crucial, and often overlooked, gap between strategic ambition and operational reality: the AI leadership divide.
Despite major investments in AI tools and high-level strategies, organisations frequently underdeliver on business impact because the very people responsible for implementation, middle and frontline managers, are left unequipped to lead the charge.
The Problem Isn’t Strategy, It’s Enablement
Senior leaders increasingly understand AI’s potential. In fact, 88% of executives plan to increase AI-related budgets in the next 12 months, especially for agentic AI tools → PwC Agent OS, May 2025
Yet 60% of frontline managers say they’re unclear how AI fits into their team’s work
→ Microsoft Work Trend Index, 2024
- Disconnect #1: Strategic Vision vs. Practical Execution
Middle managers are often excluded from early-stage planning but expected to deliver results.
"Middle managers spend less than 30% of their time on leadership. Most of it is admin and execution."
→ McKinsey, Power to the Middle, 2023
- Disconnect #2: Tool Awareness vs. Workflow Fit
AI tools are deployed without considering how they impact daily work.
Only 51% of frontline workers use AI regularly, and most receive less than 5 hours of training
→ BCG, AI at Work, June 2025
Over half of workers say they’ll use alternative AI tools if the right ones aren't provided—posing security risks
→ BCG, AI at Work, 2025
- Disconnect #3: Use Case Blind Spots
Middle managers are closest to inefficiencies but lack frameworks to identify AI opportunities.
Only 1% of organisations report mature GenAI rollouts, and few implement the practices that enable value
→ McKinsey, State of AI, March 2025
- Disconnect #4: Governance vs. Practical Use
Organisations are exposed to risk due to a lack of real-world AI policy adoption.
83% of professionals say AI is being used, but only 31% have a comprehensive AI policy in place
→ ISACA, AI Use Is Outpacing Policy, June 2025
“Without clear rules or training, employees are likely to use AI unsafely or miss key risks”
→ ISACA, 2025
- Disconnect #5: Innovation Enthusiasm vs. Change Fatigue
Executives are optimistic, but managers see AI as a disruption, not a help.
73% of CEOs expect AI to transform value delivery, but 42% of workers believe they must upskill in AI within 6 months
→ PwC UK CEO Survey, 2023
→ ISACA, 2025
- Disconnect #6: Confidence and Capability Gaps
86% of managers have received no formal AI training
→ Chartered Management Institute, 2024
Managers with 5+ hours of training and leadership support are 4x more likely to use AI effectively
→ BCG, AI at Work, 2025
The Real Risk: Missed Opportunity, Not Missed Technology
The biggest AI implementation barrier isn’t technical—it’s organisational.
“The value of AI comes from rewiring how companies run. Workflow redesign is most correlated with bottom-line impact.”
→ McKinsey, State of AI, 2025
Middle managers aren’t just a delivery layer—they’re the engine of transformation. If organisations fail to support and equip them, AI will remain stuck in pilots and PowerPoints.