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Why AI’s greatest challenge is leadership, not innovation

by theadvisertimes.com
6 months ago
in Business
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Why AI’s greatest challenge is leadership, not innovation
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Identifying future trends and technologies continues to be a “million-dollar question,” said Raffaella Cornaggia, most recently CEO of Kering Beauté at Fortune CEO Forum. Every year, the Fortune CEO Forum convenes some of Europe’s most influential business leaders, providing a trusted platform where senior executives can exchange insights and discuss their shared priorities and challenges with peers. In 2025 guests included leaders from Shell, Philips, Sodexo and more.

Cornaggia noted that social media platforms such as TikTok provide real-time data that businesses can use to identify shifting consumer tastes. TikTok’s algorithm surfaces content based on actual user behavior, making it a powerful discovery engine, where people often “accidentally” find new brands or products without searching for them. For businesses, the key is tracking how trends are resonating across multiple regions and communities. By identifying these patterns early, companies can determine which trends are most likely to scale globally.

From left: Most recently CEO of Kering Beauté, Raffaella Cornaggia, and CEO of Colnago, Nicola Rosin, at Fortune CEO Forum 2025.

Joe Maher

Looking ahead, leaders were optimistic about the impact of AI on work. Dave McCann is the managing partner of IBM Consulting for Europe, the Middle East, and Africa (EMEA). He claimed the real gains in productivity will come from how effectively organizations bring humans and technology together. “I see a similar evolution from not having computers to then having computers,” agreed Trane Technologies’ group president of EMEA, Jose La Loggia. The focus is shifting, however, from marginal productivity gains to demonstrable ROI. In a recent report, Gartner predicted AI infrastructure software spending will reach nearly $230 billion this year, up from approximately $60 billion in 2024. After years of heavy experimentation and investment, boards are increasingly demanding tangible results—and leaders are under greater pressure to deliver them.

“I see a similar evolution from not having computers to then having computers.”

Jose La Loggia, group president of EMEA, Trane Technologies

Effective leadership in the age of AI demands a longer-term view—one that looks toward the legacy we create for future generations. Shell U.K.’s chair and group EVP for sustainability and carbon, Parminder Kohli, observed that the real challenge lies in ensuring members of the next generation have the same opportunities to fulfill their potential as today’s leaders have had. This is not a technology challenge but one of leadership: Leaders must align teams, remove organizational obstacles, and “rewire” their companies so employees are set up to succeed. That means investing in training; encouraging managers to champion new tools; and implementing the governance that turns AI into a “supertool” for enhancing human agency. As IBM’s McCann pointed out, culture will evolve only if leaders start taking action today, rather than waiting for change to happen on its own.

Inside the Fortune 500 Europe Webinar – February 11, 2026: Join Europe’s top business leaders as they explore the strategies shaping the future of the region’s most powerful companies. Register your interest.



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