Across the GCC, the race to build AI is well underway. Governments are embedding it into national strategies, organizations are accelerating adoption and startups are developing solutions that promise to reshape industries, redefine competitiveness and unlock new sources of value.

By Fazeela Gopalani, Partner, EY and Leader of EY Academy MENA

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Investment is growing, innovation is accelerating and optimism about AI's potential has never been higher. The momentum is undeniable but as organizations focus on building AI capabilities, far less attention is being paid to the leadership capabilities needed to guide them. This raises an important question: who is building AI-ready leaders? Because while AI may be transforming how organizations operate, compete and create value, the technology will not determine success, leadership will.

The organizations that create the greatest value from AI will not necessarily be those with the most advanced technology. They will be those with leaders who understand how to harness it responsibly, strategically and with confidence.

Across the region, organizations are investing billions in AI initiatives, yet many leaders are still determining how AI should influence strategy, governance, workforce planning and decision-making.

Building AI is only half the equation

Much of today's AI conversation focuses on infrastructure, models, automation and productivity gains. These discussions matter. Technology is an essential part of the equation, but technology itself does not create transformation.

Leaders determine where AI should be deployed, how risks should be managed, what decisions remain firmly human and how trust is maintained throughout the process. They shape the culture that influences adoption. They establish the governance that enables responsible innovation and they make the decisions that ultimately determine whether AI delivers value or creates unintended consequences.

In other words, the most important decisions in an AI-enabled organization are not technical decisions, they are leadership decisions.

This is particularly relevant across the GCC, where AI adoption is accelerating across both the public and private sectors. The region's ambitions are significant and so too

is the responsibility placed on leaders to ensure that innovation creates sustainable value for organizations, employees, customers and society.

Leadership itself is changing

For decades, leadership was closely associated with expertise and certainty. Leaders were expected to have the answers, provide direction and make decisions based on experience and established knowledge. Today, the environment is very different.

As AI becomes increasingly embedded in business processes and decision-making, leaders must become comfortable navigating ambiguity. They are being asked to make decisions while technologies continue to evolve, information is often incomplete and the long-term implications are not always immediately apparent.

Success is no longer defined by having all the answers, it is defined by asking better questions, such as ‘can we trust this output?’ ‘What assumptions sit behind this recommendation?’ and ‘What should never be delegated to a machine?’ These are not technology questions, they are leadership questions.

As AI becomes more capable, human judgment becomes more important, not less. Leaders must be able to challenge assumptions, apply context, balance competing priorities and exercise oversight in ways that no technology can fully replicate.

A new leadership capability gap is emerging

Many organizations recognize the need to develop AI skills across their workforce. Yet far fewer are investing in AI readiness at the leadership level, creating a capability gap that could ultimately determine whether AI delivers value or falls short of expectations.

Technical teams may understand how AI works and data specialists may understand its limitations. Yet many senior leaders are still determining how AI should influence strategy, governance, workforce planning and organizational culture.

In some organizations, AI remains largely confined to technology functions. In others, experimentation is happening faster than governance frameworks can evolve. Neither approach is sustainable.

Leaders do not need to become AI engineers, but they do need a practical understanding of how AI changes decision-making, accountability, risk management and organizational performance. They need to understand where AI can create advantage, where it introduces risk and where human oversight must remain non-negotiable. Most importantly, they need the confidence to lead these conversations, and not with hype and fear but with clarity.

What does an AI-ready leader look like?

An AI-ready leader is defined by a combination of strategic judgment, adaptability and responsible decision-making. They understand where AI can create meaningful value and where human intervention remains essential. They recognize that governance is not a barrier to innovation but an enabler of trust. They understand that successful AI adoption depends as much on people as it does on technology and they appreciate that leadership in the AI era requires both confidence and humility. Confidence to make decisions and humility to recognize that no algorithm can replace human values, context and accountability.

In many ways, the qualities that will matter most are not entirely new; judgment, critical thinking, communication, influence, ethical decision-making. The difference is that these capabilities are now being tested in an environment where the pace of change is unprecedented.

The missing ingredient in AI success

The GCC has established itself as one of the world's most ambitious regions for AI adoption. The foundations are being built, the investment is happening, the opportunity is undeniable. The next challenge is ensuring leadership capability evolves at the same pace as technological capability.

This requires organizations to move beyond conversations about tools and platforms and focus on developing leaders who can navigate complexity, inspire confidence and make sound decisions in an AI-enabled world.

Everyone is building AI. The question is whether we are investing enough in building the leaders who will shape what happens next.

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