Lack of clear strategy, communication casts doubt on leadership's capability to lead in AI-enabled future
Half of employees in Australia don't think their leaders are equipped to lead them in a future shaped by AI and automation due to their lack of strategy and communication, according to a new report.
Research commissioned by Complete Office Supplies (COS) revealed that only 50% of employees believe their current leadership team has the right skills to lead them in an AI-enabled future.
According to the report, some employees believe their leaders don't have a clear strategy or communication around AI, despite acknowledging their efforts to embrace innovation and new systems.
A third of employees attributed their lack of confidence in leadership to limited training and development, while just as many said their executives were too slow to adapt to change.
Belinda Lyone, Co-CEO of COS, said the findings highlight how Australian workers want clarity and proactive leadership.
"Ultimately, uncertainty creates anxiety, so when leadership fails to communicate a vision for how AI will be integrated, employees can feel left behind or undervalued," Lyone said in a statement.
"This isn't just a technology challenge; it's a cultural one. Businesses need to actively bring their people along on the journey."
Confidence in leadership's skills was lowest in New South Wales (49%) and Victoria (43%), and strongest in the Northern Territory (83%) and Tasmania (63%), according to the report.
By sector, employees in the Travel & Transport and Health industries recorded the lowest levels of confidence in leadership.
On the other hand, the highest levels of confidence were recorded in the IT & Telecommunications, as well as the Finance sectors.
Boosting confidence in leadership
Lyone recognised that no one can claim to be a true expert on AI due to its fast-paced evolution.
But one step that leaders can take to improve employees' confidence in them is by bringing people together to openly explore how AI can shape their business.
"Creating these forums accelerates learning, uncovers opportunities, and helps employees feel part of the journey rather than bystanders to change," Lyone said.
COS also suggested embedding continuous learning into culture by treating digital upskilling as an ongoing investment. It also recommended more cross-functional experimentation, where teams can trial new tools and share learnings.
It further advised organisations to balance technology with human skills by prioritising adaptability, emotional intelligence, and communication.
"Automation and AI doesn't have to be about replacing people, but about enabling them to work smarter," Lyone said.
"The companies that will thrive are those whose leaders show the courage to learn, the humility to admit what they don't know, and the foresight to prepare their teams for the new era we are entering."
