The 8% Problem and Why AI Fluency in Leadership is an Urgent Business Priority

The Growing Gap in the C-Suite

Only 8% of today’s business leaders are considered fluent in AI. That statistic might seem surprising when you consider the rapid pace at which artificial intelligence has evolved from concept to capability. In boardrooms and strategy sessions across industries, the pressure to “do something with AI” is palpable.

But here’s the problem: when those at the helm don’t understand what AI is, how it works, or what it can enable, it becomes nearly impossible to set a vision that others can follow or to inspire meaningful action.

In a world where nearly 70% of technology transformations already fall short, the rise of AI raises the stakes even higher. Fluency at the top is no longer a luxury. It is a business imperative. Without it, organizations risk launching ambitious AI initiatives with little clarity, low adoption, and limited value.

In this blog post, we’ll explore why AI fluency in leadership matters more than ever and why closing this gap is foundational to meaningful, measurable transformation. Drawing on lessons from our work in organizational change and enablement, we’ll also share how companies can begin cultivating fluency in their leadership teams and design change strategies that actually stick.

What Is AI Fluency and Why Does It Matter?

AI fluency is not about writing code or understanding the fine-tuned parameters of a neural network. It is about something far more foundational and strategic. At its core, AI fluency is the ability to grasp what AI can and can’t do, contextualize it within a business environment, and make informed decisions that move the organization forward.

Across industries, there is often a disconnect between ambition and understanding. Leaders want to “leverage AI,” but they lack clarity around how, where, and why. This is where fluency matters most—not in technical execution, but in shaping vision, strategy, and execution in ways that are aligned and actionable.

Fluency enables leaders to ask the right questions:

• How might AI change how we work, serve customers, or make decisions?
• Where are the real risks, and what are the unintended consequences?
• How do we balance automation with human creativity and judgment?

Without that working understanding, AI becomes a buzzword rather than a business tool. Teams are left without clear direction. Initiatives start strong but stall when they encounter complexity. Organizations lose valuable time chasing tools instead of outcomes.

Put simply, you can’t lead what you don’t understand.

The Ripple Effects of Low Fluency at the Top

When leadership lacks fluency in AI, the impact is felt far beyond the executive team. It creates a ripple effect that touches every layer of the organization, from strategic alignment to frontline adoption.

Without a clear and credible understanding of AI, leaders often struggle to articulate a compelling vision. That ambiguity trickles down, leaving teams unsure of what success looks like or how AI fits into their day-to-day work. Ambitious initiatives are launched without clear objectives. Promising tools are deployed without a plan for enablement. And when questions arise, there’s no confident voice at the top to connect the dots between technology, outcomes, and people.

This kind of gap creates hesitation, and hesitation undermines momentum. Innovation slows. Trust erodes. Change efforts become harder to sustain, especially when the perceived value of AI remains vague or abstract.

AI is an enterprise capability. It touches every part of the business and requires leadership that can guide its use with clarity, purpose, and confidence. Leaving AI decisions solely to technical teams’ limits innovation, increases risks, and makes it harder to scale success across the organization.

AI Is Different and That Changes the Leadership Ask

AI represents a fundamental shift in how work gets done, how value is created, and how decisions are made. Unlike earlier technologies that automated individual tasks, AI introduces systems that learn, adapt, and evolve based on human input, environmental context, and massive amounts of data.

Generative learning models require more than technical oversight. They require leadership that understands how technology and people shape each other in real time. Effective leadership in the era of AI means:

• Understanding possibilities: Recognizing where AI can create new value across the organization.
• Navigating responsibility: Managing ethical implications, data privacy concerns, and human impacts thoughtfully.
• Shaping strategic direction: Connecting AI capabilities to broader business goals with clear purpose and outcomes.
• Empowering collaboration: Designing environments where technology augments human creativity rather than replaces it.

Leading in this environment demands more than setting a strategic vision. It requires creating the conditions where transformation can take root—through culture, enablement, and a shared understanding of what AI makes possible.

The starting point is fluency. Leaders who understand the nature of AI are better equipped to shape its role within the business, foster innovation, and guide their teams through uncertainty with confidence.

How to Start Closing the Gap: Steps Toward AI Fluency

The good news is that AI fluency can be built. Leaders do not need to become technologists. They need to become better translators, connecting technical possibilities to business priorities in ways that inspire action and deliver results.

Here are a few practical steps organizations can take to start closing the fluency gap:

1. Assess the Baseline

Start by understanding where your leadership team stands today. Identify what they know about AI and where the blind spots are. A simple pulse check—through workshops, interviews, or self-assessments—can surface key areas of strength and opportunity.

2. Make Learning Contextual

Anchor AI education in real business problems and familiar scenarios. Focus on how AI enhances customer experience, streamlines operations, or supports better decision-making. Relevance drives engagement.

3. Create Space for Conversation

Fluency grows through dialogue. Leaders need opportunities to ask questions, challenge assumptions, and share insights across teams. Building internal forums that encourage curiosity strengthens adoption and alignment.

4. Broaden the Circle

Expand AI understanding across business units, not just within IT. Involving leaders from operations, HR, finance, and customer experience brings broader perspectives and ensures strategies are practical and scalable.

5. Partner with Guides

Identify internal champions or trusted advisors who can translate AI advancements into business impact. These guides help connect technology to tangible outcomes and sustain momentum over time.

Building fluency requires continuous investment in learning, reflection, and real-world experimentation. Organizations that commit to developing leadership fluency position themselves to capture the full value of AI innovation.

Fluency Isn’t Optional Anymore

As AI continues to evolve, the gap between those who understand it and those who do not will only grow more consequential. The ability to lead with fluency—rooted in curiosity, context, and clarity—will define who sets the pace in this next era of transformation.

Technology alone does not drive change. People do. Leadership fluency in AI shapes how effectively organizations imagine possibilities, manage risks, and create sustainable value.

Closing the fluency gap strengthens more than technical knowledge. It builds strategic foresight, accelerates adoption, and creates cultures that are ready to experiment, learn, and lead.

The organizations that invest in developing AI-fluent leadership today will define the future of their industries tomorrow.

AI is already here. The question is whether your leaders are ready to shape what comes next.