As AI accelerates across industries, CEOs are facing a leadership moment that will determine the future of their organizations. Some treat AI as simply an incremental technology change, something to be delegated to CIOs and a wave to be observed from a safe distance.
But Tuck Rickards, managing director and co-head of the global technology practice at Russell Reynolds Associates, believes that’s missing a deeper truth. “AI is more than just a tool,” he says. “This represents a generational business model shift.” And only a few CEOs understand the gravity of this moment.
“There’s a huge opportunity for leaders who lean into it,” Rickards said. In his view, the difference between successful and unsuccessful CEOs comes down to three essentials: clarity, conviction, and ability.
Clarity: See your future business model
Clarity starts with rethinking the fundamental architecture of your business. Few leaders cross that line, Rickards said. “Our data shows that only 5% to 10% of CEOs in both technology and non-tech sectors are making a true personal commitment to transforming their organizations to an AI-first model,” he explains.
The findings reflect insights from more than 200 recent conversations with CEOs from a variety of sectors. While many understand the potential of AI, few are yet redefining how it fits into their business models, strategies, and leadership approaches. As a result, the gap between those experimenting and those making real changes is widening.
The difference between reaching out and committing is huge. AI requires rethinking the entire business as a technology platform, Rickards says. “You’re no longer just running a business; you’re reinventing a business.”
“Technology and AI are no longer just enablers of light,” Rickards says. “We have to think a lot about the platform and how AI agents are the new colleagues we bring into the room.” This is a fundamentally different way of operating, and traditional CEOs are struggling to fully embrace it without clarity on their future business model.
Belief: The Leap that Defines a Leader
With clarity, confidence becomes the next action. And that’s the part most CEOs find scary.
“This is a complex and scary choice for leaders,” Rickards said. “You have to be willing to take risks with your legacy.” The easier path is always to stay the course, delay the decision, or hand the task over to another leader.
Looking back through history, the organizations that have weathered technological change most successfully are often those that found the courage to act boldly in moments of uncertainty. Bold leadership isn’t always the safest path, but when disruption is most severe, it’s often the only way to move an organization forward.
Walmart’s decision to pursue digital reinvention more than a decade ago, at a time when some online retailers seemed untouchable, embodies that kind of belief in Rickards’ view. “They made a bold bet to compete head-on with Amazon, and today they are in a very competitive position,” he says.
“Three years ago, Microsoft chose AI as a core theme for the company, rather than as a separate product line,” Rickards said. The AI-first repositioning, built with an investment in OpenAI and deployment of Copilot, demonstrated an appetite for challenging assumptions and changed the direction of the entire company.
These decisions were bold and often unpopular, but they reshaped the industry. “If CEOs want to ensure not only their legacy but also the long-term strength of their organizations, they need to take steps to position themselves for future success,” Rickards says. It means choosing to take the leap before it becomes inevitable.
This level of belief is becoming increasingly important as CEO tenures get shorter and leadership transitions accelerate. According to Russell Reynolds Associates’ latest CEO Turnover Index, average tenure decreased from 8.1 years to 6.8 years, and more than 70% of CEO changes in the first half of 2025 were unplanned. Boards are under pressure to find leaders with both the conviction and ability to lead organizational change.
Capabilities: Building a future-ready organization
Once the CEO has clarity on the destination and the conviction to pursue it, the organization needs to build the muscle to execute on it. Rickards emphasizes that “capability” does not mean turning every company into an AI company. “That means using this moment as a catalyst to reinvent our business models, the way we work, and the products and services we offer.”
In his view, the fundamental change is to become a more insight-driven and data-driven company. This means modernizing technology platforms, rethinking operating models, and ensuring boards and leadership teams are equipped to lead in a technology-centric future. This is where many organizations stumble, he added, because without clarity and belief, capacity building becomes piecemeal and incremental.
Rickards believes we are at a crossroads for true leadership. “This is truly a moment of choice for CEOs,” he says. And those choices will shape the long-term winners and losers over the next decade. Some CEOs will take on the responsibility of reinventing their organizations for the AI era. Some people wait, rationalize, or withdraw.
AI transformation ultimately comes down to leadership decisions, Rickards said. And for CEOs who can meet this moment with clarity, conviction, and ability, the opportunities ahead will be tradition-defining. “It’s not a question of buzzwords,” Rickards insists. “It’s important to be clear about what’s possible and build the belief to take that next difficult step.”
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