What great leaders know about AI that others miss

AI brings opportunities for productivity, innovation and disruption. It is making inroads in every sector, with tech leaders identifying AI as a defining trend in 2025.

Deloitte found that more than three-quarters of Australian business and technology leaders expect generative AI to drive significant transformation within their organization and industry over the next three years. While concerns around AI, such as bias, job losses, privacy and cyberthreats, may be daunting, leaders are increasingly recognizing AI as a tool for rapid positive change that they need to adopt quickly.

However, unlocking AI’s full potential requires a deliberate, inquiring approach. As a leadership coach with decades of experience guiding leaders through industry disruptions, I believe that the leaders who will benefit most from AI will consciously adopt an ‘outsider’ mindset in their organizations.

An opportunity to elevate leadership

AI is all about perspective. I grew up with film photography, and as an amateur photographer, I’ve loved keeping pace with the digital era. My new mirrorless camera is an incredible piece of technology, but as any photographer will tell you, the camera doesn’t make the shot – the photographer does.

AI can enhance photography, but it does not replace the human eye, creativity and intuition behind the lens.

The same principle is true for leadership. AI is reshaping industries at a furious pace. Practices and technologies that were once cutting-edge will quickly become obsolete. Expertise itself is being redefined.

While unsettling, this shift presents an exciting opportunity for leaders to elevate their leadership and to balance the tension between operational efficiency and creativity. Those who navigate this shift effectively will not only stay ahead, but some will also shape the future of their industries.

How leaders stand to benefit from AI

AI enhances attention to detail, accuracy and the ability to process vast amounts of information, uncovering fresh insights to inform better decision-making. It can help leaders be more consistent and efficient and even improve their people skills and positive impact by leveraging insights from AI algorithms.

Paul Daugherty, Accenture’s Chief Technology and Innovation Officer and author of Human + Machine: Reimagining Work in the Age of AI, explained in a recent interview with Harvard Business Review that by leveraging AI systems and tools strategically, leaders can enhance their most valuable human traits and refine essential aspects of leadership.

Human potential can be elevated by AI, but AI requires human insight to realize its full capabilities. Leaders need to pause and broaden their perspective to harness AI effectively.

The value of an outsider’s perspective

I believe that today’s most effective leaders operate as insiders with an outsider mind. What does this mean?

• As insiders, these leaders deeply understand their business, industry and systems.

• As outsiders, they stay curious, question assumptions and resist the inertia of ‘business as usual’.

This mindset is useful in embracing the potential of AI. As Harvard Business Review states in its article ‘How AI Can Make Us Better Leaders’, by cultivating heightened self-awareness and understanding of others, leaders can effectively navigate intricate interpersonal and organizational challenges with clarity and wisdom.

For example, one of my clients, Jack, was recently worried about giving performance feedback to an under-confident team member. Jack outlined the challenge in his AI app, asked targeted questions and was given a helpful six-point plan.

This allowed Jack to shift from a negative perception of the situation to a deeper perspective about how challenging conversations really are opportunities for growth.

By balancing an insider’s expertise with an outsider’s curiosity, leaders can develop a well-rounded perspective that fuels both execution and innovation. This balance is more critical than ever. AI isn’t just accelerating business, it’s challenging what it means to be a competent business leader.

How to nurture your outsider’s mind

So, how do you keep an outsider’s mind while leading from the inside?

Challenge your own expertise

The knowledge that made you successful might not be enough. Stay informed, open and willing to learn new skills. All leaders need to learn about AI and its possible implications for their business, industry and society. A beginner’s mind is crucial for adapting to emerging technologies.

Ask better questions

AI provides answers, but human insight determines the right questions. Rather than passively accepting AI’s outputs, leaders must use their business acumen and human wisdom to refine their questioning skills to produce deeper, more meaningful insights. Explore possibilities with targeted, incisive and compelling questions.

Think beyond efficiency

AI optimizes, but leadership requires vision. The future is always shaped by those who reimagine what’s possible. Leaders can leverage AI not just to streamline operations but to create and drive strategic and tactical transformation.

Stay uncomfortable

Growth happens at the edges of what we know. Comfort can be an obstacle to progress, especially in the age of AI. Leaders must foster a culture of experimentation and continuous learning, encouraging teams to explore its potential rather than fear its impact.

The future of leadership in the AI era

While AI is reshaping the business environment, human intelligence, creativity and perspective are irreplaceable. Just as an advanced camera still requires a human to compose the shot, notice the light, find the right angle and capture the story, AI enhances but does not replace leadership.

Insiders drive execution, while outsiders fuel innovation. The leaders who thrive in the age of AI won’t just be the ones who know their industry best, they’ll be the ones willing to reframe it. And capture the shots.

Are you leading as an insider with an outsider’s mind?

Opinions expressed by The CEO Magazine contributors are their own.