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These are some of the challenges AI brings to leadership in the Middle East

Leaders in the Middle East express concerns over failure to implement effective AI strategies and deliver business results, highlighting the growing pressure to stay competitive in an AI-driven market.

These are some of the challenges AI brings to leadership in the Middle East
[Source photo: Krishna Prasad/Fast Company Middle East]

Many leaders face an unsettling reality: the fear of job loss due to failure to implement an effective AI strategy. For some, the concern goes beyond the potential loss of position; it’s about remaining relevant in an increasingly AI-driven world. Tools once considered valuable for enhancing efficiency and decision-making are now labeled insufficient. The challenge is no longer just adapting to new technology—it’s surviving in an AI-powered economy.

A recent Dataiku report underscores this fear, revealing that 74% of CEOs worldwide acknowledge the risk of losing their jobs within the next two years if they fail to deliver measurable, AI-driven business results.

“For CEOs today, every AI decision feels like a high-stakes gamble that can drive competitive dominance or lead to costly consequences,” says Florian Douetteau, co-founder and CEO of Dataiku.

Douetteau adds that the only way to turn AI into a lasting advantage is by asserting greater control and governance, “future-proofing not just the companies these CEOs run, but their roles as leaders in an increasingly AI-powered economy.”

Ashish Koshy, Chief Operating Officer at Inception, concurs, stating, “AI adoption is no longer a choice but a strategic imperative.” Yet he points out that 74% of companies struggle to scale AI’s value, and although 97% of CEOs plan to integrate AI, only 1.7% feel fully prepared, according to BCG and Cisco reports.

THE AI CHALLENGE

AI’s rapid ascent is changing how companies operate and disrupting the power dynamics between CEOs, executive teams, and board directors. AI is no longer just a tool for efficiency; it’s becoming a co-pilot in the corporate cockpit, ready to take on tasks that were once solely handled by human leaders.

“As an innovator and provider of AI-powered products and solutions, we see potential challenges at the user’s organization level in terms of their collective uncertainty surrounding AI’s potential benefits, privacy concerns, and difficulty quantifying AI’s value creation,” Koshy explains.

“One of the biggest challenges in AI adoption is gaining buy-in from team members,” says Vinayak Mahtani, CEO of bnbme holiday homes by Hoteliers. Many employees fear AI will replace their jobs rather than enhance their performance. At the same time, some team members don’t take AI seriously enough, seeing it as a new and unproven technology. Another hurdle is the tendency to blame AI for incorrect outputs when, in fact, the real issue often lies in poorly structured prompts or a lack of deeper exploration.

“AI’s effectiveness depends on how well it is utilized, and a thoughtful approach is crucial to unlocking its full potential. AI has already transformed our decision-making, offering new perspectives and deeper insights,” Mahtani adds.

Meanwhile, Koshy identifies that organizations often struggle to develop a clear strategy and pinpoint high-impact use cases. This results in AI initiatives that lack alignment with overarching business objectives. “At the end-user level, the challenge for enterprises is about people and processes. To derive the best value from AI-driven products, organizations ought to prioritize product familiarity and training to equip end-users with the knowledge and capability to integrate AI into their workflows,” Koshy explains seamlessly.

AI-WASHING: THE SILENT THREAT TO INNOVATION 

Many companies invest time, money, and effort into implementing AI solutions that don’t align with their business goals or generate meaningful outcomes. Without clear strategic objectives, these AI initiatives often fail to deliver the promised improvements in efficiency, decision-making, or customer experience.

Koshy emphasizes that AI adoption must be “frictionless, intuitive, and outcome-driven” to be truly effective. He highlights that companies can avoid AI-washing—where AI products are deployed without clear purpose—by carefully choosing AI solutions that drive “real business impact.” According to Koshy, this approach ensures that AI is implemented with measurable value rather than simply for adopting new technology.

Beyond just adoption, Koshy stresses the importance of shifting from gut instinct to “data-driven decision-making.” This shift is crucial for organizations aiming to optimize operations and drive business growth. He explains that AI can help enterprises “optimize efficiency, enhance safety, and drive cost reductions.” For example, AI can transform processes by automating tasks, providing data-driven insights, and allowing employees to focus on more strategic work. In the energy sector, AI is used to process historical and real-time data to improve efficiency, production, safety, and sustainability—ultimately enabling “smarter and more accurate decision-making at scale.”

Koshy believes that AI is not just about automation but about transformation. AI should align with “enterprise and industry goals, rather than chasing trends,” bringing about efficiency and positively impacting all stakeholders.

Kiril Evtimov, CEO of Core42, says, “The real risk for leadership today isn’t whether to adopt AI—it’s how to do it strategically. Too many organizations are AI-washing, deploying AI without clear purpose or business outcomes.”

AI-washing can manifest in different ways. Some businesses falsely advertise the use of AI when using simpler technologies, while others overstate the capabilities of their AI compared to traditional methods. Additionally, some may present their AI solutions as fully operational, even though they are still in the early stages or not functioning as claimed.

Evtimov argues that AI must be purpose-driven, enterprise-aligned, and seamlessly integrated to deliver real impact. Core42, for example, takes a different approach by building the infrastructure that powers AI at scale. Their sovereign AI and cloud platforms ensure businesses and governments retain complete control over their data, guaranteeing regulatory compliance while enabling secure, intelligent automation.

A QUESTION OF SURVIVAL?

Many CEOs are falling into the ‘AI commodity trap.’ “AI has already transformed our decision-making by offering an alternative lens through which we can analyze problems. As early adopters, we move quickly with AI—some initiatives succeed, while others don’t. However, the successes far outweigh the failures, making the journey well worth it,” Mahtani adds.

The stakes for CEOs in this new AI-driven landscape could not be higher. While CEOs prioritize AI strategy as a core business goal for 2025, most acknowledge that AI’s impact on their organization is crucial for maintaining investor confidence. For many, the message is clear: AI strategy is not just a technical imperative; it’s the defining factor in their survival as leaders and the survival of their companies.

If CEOs fail to deliver measurable, AI-driven business results, they risk becoming a cautionary tale for others in a rapidly shifting corporate world. As AI continues to evolve, the ability to turn AI intent into actionable outcomes will determine the company’s success and the longevity of its leadership.

Evtimov says, “The next two years will define AI leadership. CEOs who fail to implement a clear, scalable AI strategy won’t just struggle to compete—they’ll struggle to stay relevant. In an AI-first world, adaptation isn’t optional, it’s survival.”

In this high-stakes battle for relevance, CEOs must adapt, learn, and embrace AI—not just as a tool but as a partner in shaping their organizations’ future. The time for hesitation is over; the future of their leadership—and their company—depends on how effectively they harness the power of AI.

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ABOUT THE AUTHOR

Rachel Clare McGrath Dawson is a Senior Correspondent at Fast Company Middle East. More

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