CTOs & CDOs drive AI strategy as UK firms eye rapid returns
Research from Slalom reveals that Chief Technology Officers (CTOs) and Chief Data Officers (CDOs) are leading organisational restructuring around artificial intelligence (AI) in the UK and Ireland, with Human Resources (HR) leaders playing a significantly smaller role in these transformations.
The findings come from Slalom's third AI Insights Survey, which collected input from 2,000 C-suite and senior leaders globally, including 417 from the UK and Ireland. The report provides a snapshot of current attitudes, expectations and concerns as AI becomes central to business strategies in large enterprises.
Investment and expectations
The research shows that companies in the UK and Ireland are ramping up their commitment to AI, with nearly all firms surveyed planning to maintain or increase spending in 2026. Some 62% of executives expect to see a return on investment in their AI initiatives within just two years, highlighting a strong confidence in the technology's ability to deliver measurable value in the near future.
Despite this optimism, 94% of organisations report facing workforce challenges and half are still operating core business applications on legacy systems. These factors, the report warns, risk limiting the potential returns on AI investment unless the skills and infrastructure gaps can be addressed.
"This is not the beginning of AI disruption. It's the endgame of its first act," said Amy Loftus, Chief Customer Officer at Slalom. "Global executives report that by 2030, most AI-driven transformation will be complete. The final surge of change across roles, workflows, and systems will peak between 2026 and 2028."
AI's support role
The report states that 96% of UK and Ireland executives and mid-level leaders are comfortable with AI augmenting leadership and decision-making. However, most regard AI's primary benefit as streamlining repetitive or manual tasks rather than replacing human judgement at the strategic level. Only 42% say AI is consistently providing higher-quality outputs, suggesting that much of its capability remains unrealised without stronger employee engagement and process alignment.
Workforce impact and job creation
Contrary to concerns about job losses, 64% of organisations in the UK and Ireland are creating or planning to create new roles related to AI-six percentage points higher than the global average. Nonetheless, workforce-related issues are slowing AI adoption for 94% of these organisations.
UK and Ireland business leaders pointed to several workforce barriers impacting the realisation of AI value. The most common were lack of effective training (41%), employee distrust or concerns over job security (40%), insufficient investment in AI tools (35%), and a lack of leadership commitment or coherent AI strategy (30%).
Shifting skills priorities
Among UK and Ireland business leaders, the perceived importance of traditional human skills such as communication and empathy is waning compared to technical and cognitive abilities. Over half (52%) now rank critical thinking and problem solving as the most essential capabilities for high-performing teams, followed by creativity (41%), digital literacy (40%), resilience or adaptability (32%), and cognitive flexibility (32%). Communication and interpersonal skills are cited by just 21% of leaders, while only 17% value emotional intelligence or empathy as important for workforces using AI.
This shift comes as 84% of Gen X and Millennial contributors globally report experimenting with AI tools in their spare time, seeking to future-proof their careers amid the changing landscape.
C-suite alignment and leadership
Slalom's research found varied levels of confidence within the C-suite regarding AI's industry impact. CEOs in all countries surveyed are the most optimistic, with 51% viewing AI's impact as "very positive". In contrast, just 34% of Chief People or HR Officers share this outlook. This difference may stem from the shifting responsibility for AI-led organisational redesign: 55% of global organisations place this responsibility with CTOs/CDOs, whereas only 19% name HR leaders or Chief Human Resource Officers as primary drivers.
Executives are also more sanguine about AI's potential than mid-level leaders, with 42% of executives perceiving a very positive impact compared to 36% of those in mid-level positions.
"Business leaders in the UK are highly optimistic about seeing fairly rapid returns on their AI investments - but the urgency for workforce re-organisation and upskilling is ramping up. Ultimately, it is up to organisations to bridge any gaps through tailored AI training and cross-generational collaboration to build a truly adaptable workforce. As AI rapidly moves from the back-office function to a top priority in the boardroom, the research reveals fascinating shifts in responsibility and skills," says Caroline Grant, Slalom UK's Senior Managing Director.
The survey, administered by GLG Insights, focused on companies with annual revenues exceeding USD $500 million, and in some cases over USD $10 billion. Respondents were drawn predominantly from businesses already underway with their AI adoption strategies.
