The Economics of AI: Talent Before Technology

Transforming Today’s Organisations with Tomorrow’s Leaders

Organisations are spending more than ever on AI, but true value lies not just in technology, but in talent and leadership that can guide its transformation.

Organisations are investing heavily in AI, with adoption rates soaring, yet skeptics still question AI’s return on investment. Creating value from AI requires more than just technological implementation—it demands a shift in working processes, operating models, and, most crucially, human capital. As AI technologies and data structures form the foundation of AI-native organisations, the focus must turn to leadership and talent that can drive sustainable and responsible growth.

According to Bain & Co., generative AI initiatives could add up to 20% to EBITDA, and as AI matures, it is no longer just a tool for technical teams. AI is now a strategic driver of business transformation, embedded in operations, fostering a data-driven culture, and promoting responsible business practices. The transition to AI-native organisations is not just about technology—it’s about talent.a

The McKinsey Global Institute projects potential productivity gains for all workers through generative AI (genAI) to rise between 35-70% in the coming years. The software industry provides a glimpse into this transformation. Over the last 18 months, genAI tools have boosted developer productivity by 50%, with similar gains expected in the near future. This productivity surge is set to redefine industries and reshape how businesses approach software solutions—whether to build or buy.

As AI continues to boost human productivity, it is reshaping the future of work, heralding a new era of efficiency and value creation. Visionary nations, like the UAE, have already embraced this shift. With oil revenues projected to peak by 2029, the UAE has positioned AI as a cornerstone of its future economic strategy, crucial for driving growth in a post-oil economy. In both public and private sectors, AI is no longer optional but essential for driving productivity.

Governments are increasingly mandating the appointment of Chief AI Officers (CAIOs)—leaders tasked with steering organisations toward an AI-driven future. These leaders don’t just implement technology; they transform business models, organisational strategies, and human capital. The CAIO’s role is pivotal in ensuring the C-Suite and board are equipped to navigate the AI economy, and their leadership profile requires a distinct set of skills for this new era.

Traditional leadership, often characterised by MBAs or consultants with effective communication and broad general knowledge, is being reshaped. Today, tools like ChatGPT or Gemini can perform many of these tasks more efficiently. In an AI-first world, creativity, technical acumen, and the ability to lead AI-powered innovation will be the hallmarks of successful leaders.

Every member of the C-Suite must contribute to this transformation, ensuring that the organisation’s talent evolves alongside AI’s capabilities. Chief Human Resources Officers (CHROs) will play a pivotal role in shaping the workforce of the AI economy. Traditional skills are rapidly giving way to AI proficiency, creativity, and leadership. A recent Gartner study found that only 15% of Chief Information Officers and IT leaders believe their workforce is equipped for the future. This is an urgent call to action.

The Chief Financial Officer’s (CFO) role is also evolving. AI-native organisations’ balance sheets will increasingly reflect investments in cloud infrastructure, AI models, data monetisation, and more. This shift will require CFOs to understand the new economic landscape, ushering in a new breed of finance leaders attuned to the AI economy. This transformation will impact the entire leadership team.

Leading in the AI economy requires more than just new skills; it demands a deep understanding of the emerging economic models and the ability to mitigate risks. AI’s growing presence in business operations introduces increased risks of regulatory breaches and ethical missteps. By 2030, Gartner projects that decisions made by AI agents without human oversight could result in $100 billion in losses due to asset damage. Responsible AI must become integral to enterprise risk management and governance structures.

The transformation driven by AI is not just technological—it’s about leadership, people, and culture. Organisations that succeed will blend technical prowess with visionary leadership, capable of reimagining business in a digital-first world. By 2025, Gartner predicts that 35% of large organisations will have appointed a CAIO reporting directly to the CEO or COO, reflecting AI’s growing strategic importance.

The AI economy is not a distant concept—it is unfolding today. To capitalise on this transformation, organisations must act with agility and foresight. Whether through innovative services, new business models, or cost reduction strategies, AI presents boundless opportunities, but it is the human element that will ultimately determine success.

About the Author

Bashar Kilani is a Digital Economy Advocate and Managing Partner at Boyden. He is also the Founder of AI360 Innovations at Dubai AI Campus. Bashar has held senior leadership roles at Accenture and IBM and serves on the boards of prestigious organisations in industry, entrepreneurship, and academia.