Why leaders are struggling to keep up with technology

As organizations continue to invest heavily in AI, generative tools, automation and advanced analytics, many struggle to realize the full return on those investments. The challenge is not access or ambition, but leadership readiness. Only 26% of leaders score high on flexibility, a key indicator of how effectively leaders adapt to rapid change, according to the SuccessFinder 2025 State of Leadership Report.

Tech acceleration is exposing a leadership gap

AI and data-driven tools now influence nearly every aspect of work, from routine tasks to decision-making and collaboration. Leaders must interpret complex information, guide responsible adoption and help teams rethink how work gets done—all tasks that require digital fluency paired with sound human judgment.

Many leaders still rely on skillsets that worked in more stable environments. They default to familiar processes, delay decisions until certainty appears or lean too heavily on technology outputs without questioning assumptions. These behaviors slow progress and create confusion for teams expected to work differently.

Leaders who keep pace with technology approach change with curiosity. They ask sharper questions, stay open to learning and involve teams in experimentation. They do not necessarily need deep technical expertise; they need the willingness to adapt how they lead as tools and workflows evolve.

Economic pressure is amplifying the challenge

Technology evolution rarely occurs in stable conditions. Leaders face volatile markets, shifting priorities and constant disruption, all of which demand faster decisions with incomplete information.

SuccessFinder’s data shows that only 18% of leaders score high in stress tolerance, while nearly 40% score low. This suggests that many leaders risk becoming overwhelmed under sustained pressure, impacting clarity and focus. Teams feel that strain through unclear direction, reactive decision-making and declining engagement.

Resilient leaders respond differently. They maintain focus, communicate calmly and balance short-term demands with long-term priorities. In a technology-driven economy, resilience enables leaders to move quickly without sacrificing judgment or trust.

How human skills determine tech outcomes

As organizations adopt new technologies, employees look to leaders for stability and meaning. Purpose, inclusion and psychological safety matter even more in hybrid and rapidly evolving environments.

Empathy and emotional safety now play a direct role in engagement, retention and adoption of new ways of working, yet these traits appear less frequently at senior levels. As leaders rise, many shift their focus toward results and metrics, often at the expense of connection and trust. When leaders fail to create psychological safety, employees hesitate to raise concerns, resist new ways of working or disengage from transformation efforts. Technology initiatives gain traction only when leaders build confidence, invite feedback and actively support learning.

What organizations can do now

The data points to a clear conclusion: Generic leadership models no longer meet the demands of rapid technological change. Organizations need approaches that reflect their strategy, culture and leadership levels.

Here are four steps organizations can take to better align leadership development with business goals:

• Define leadership expectations aligned to business context and level-specific needs.
• Assess behavioral gaps using reliable psychometric data.
• Use insights to identify high-performing talent, tailor development to specific behaviors and inform succession decisions as leadership expectations shift.
• Track progress through continuous feedback and measurement.

When organizations ground leadership development in data, they move toward evidence-based action that is more likely to deliver a strong return on investment.

Looking ahead

Technology will continue to accelerate, and leadership capability will determine whether organizations keep pace or fall behind. Leaders who combine adaptability, resilience and human connection will be best positioned to turn innovation into sustainable performance.

For leaders and HR teams interested in building AI-ready leadership, SuccessFinder is hosting a free webinar on January 29 focused on leadership readiness in an AI-driven environment. The session will explore how organizations can assess leadership gaps and align development with technology strategy.

Carolyn Hass, Ph.D., serves as the chief operating officer for SuccessFinder. An operations executive and thought leader in the HR technology space, Carolyn owns the end-to-end product life cycle at SuccessFinder, driving corporate strategy execution through the design and development of data-driven tech solutions.