New report: AI leadership gap threatens European competitiveness
Nearly two-thirds (63%) of business leaders across the United Kingdom, France, and Germany are unprepared to lead effectively in an AI-enabled world, according to new research from Coqual and Catalyst. Based on responses from 2,891 leaders and employees, the study suggests that while AI adoption is accelerating, leadership capability is an issue.
For eeNews Europe readers tracking industrial digitalization, embedded AI, and enterprise transformation, the findings underline a familiar theme: technology investment alone does not guarantee competitive advantage. Execution and leadership are key.
The rise of the “convergent leader”
According to the release, 49% of UK leaders describe themselves as AI-skilled, compared with only 23% in France and 17% in Germany. However, the research stresses that technical literacy alone does not drive results. Business performance improves only when leaders can also support and motivate their workforce through change.
The study identifies the “Convergent Leader” as a new leadership profile. Such leaders combine AI fluency, inclusive leadership behaviors, and what the report calls a flexible mindset. More than 37% of leaders surveyed fall into this category, most commonly in the UK (55%), followed by Germany (25%) and France (20%).
Convergent leaders are described as balancing human judgment with technology, fostering psychological safety, and leading confidently through uncertainty. A defining element is their “flexible mindset,” which includes cognitive flexibility, relentless curiosity, grace under fire, and human-centered judgment.
The commercial impact appears significant. Organizations led by convergent leaders report a 93% boost in team productivity versus 34% under non-convergent leaders. They also show stronger performance in revenue growth (53% vs 26%), innovation (45% vs 18%), operational efficiency (54% vs 30%), and market expansion (41% vs 17%).
AI adoption without human planning
The study highlights a lack of preparation for workforce impact. More than a third (34%) of employees fear being replaced by automation, yet only 35% say their organization helps them build AI skills relevant to their role.
Long-term planning also appears limited. Only 28% of leaders (and 29% of employees) indicate that senior leadership is planning for the long-term impact of new technologies on employees. In France and Germany, this drops to 20% and 22%, respectively.
Measurement is another weak spot. According to the release, 95% of leaders cannot quantify AI’s impact because their organizations are not tracking it. Among those that do, innovation metrics (52%) take precedence over engagement (38%) or retention (31%).
For Europe’s engineering-driven industries, the message is clear: AI capability must extend into leadership culture and workforce strategy. As AI becomes more important across manufacturing, automotive, semiconductors, and industrial systems, leadership maturity may prove as critical as technical architecture in determining which organizations succeed in the long run.
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