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Large organizations are accustomed to change, but the current transformation is different in that it’s not about economic shifts, mergers, or new leadership. This time, the change is being driven by Artificial Intelligence (AI), and it’s happening because established leaders know that to maintain their position, their organizations must adapt.
AI offers a compelling promise: empowering the same number of people with the tools to achieve significantly more, leading to sustainable growth. But it can also be used to allow fewer people to accomplish the same amount of work. Naturally, this is an anxiety-inducing possibility.
Therein lies the real challenge in AI transformation. It’s not just a technological hurdle; it’s an organizational one.
Every executive needs to recognize this reality. It’s not enough to have a solid technical roadmap with a clear goal, sufficient budget, and a skilled engineering partner. You also need a well-thought-out plan for how your people will react, adapt, and help lead the change. Without that, even the most promising AI initiatives are at risk of delays, unmet expectations, and even failure.
Like all Change Management initiatives, the AI transformation plan you start with isn’t the plan you’ll end with. You need to iterate continuously, taking into account the feedback and concerns of those involved. As you begin to implement changes, unintended consequences will emerge — shifts in internal communication dynamics, changes in workflows, or new challenges in employee training. The key to navigating these challenges is adaptability: modifying not only the transformation plan itself but also how you roll it out, based on what you learn along the way.
Here are a few essential starting points:
- Identify Champions. A transformation effort needs champions, and not just from the management ranks. Seek out forward-looking rank-and-file employees — individuals who understand the potential of AI. (Think of them as your “early adopters”.) These champions can inspire their colleagues, share their enthusiasm, and serve as ambassadors for change.
- Anticipate Resistance. Resistance is inevitable. For many employees, AI represents a major disruption to their familiar processes and workflows. Concerns about layoffs or being replaced are natural, and it’s important to acknowledge these fears openly. Champions can help, but they must be complemented by a thoughtful strategy that anticipates the sources of resistance and addresses them head-on.
- Conduct Listening Tours. The best way to understand employee concerns is conduct listening tours — open conversations where employees can share their fears, questions, and feedback. These are a powerful way to build trust and gather valuable insights. They should be facilitated by individuals who are neutral — not part of management or HR — to ensure that employees feel safe expressing their thoughts. Importantly, taking the feedback seriously and acting on it is crucial for maintaining employee loyalty and engagement. (Conversely, soliciting and then ignoring employee feedback is a quick way to irrevocably destroy that trust.)
As with any major organizational change, there will be a range of responses among employees. Generally, people will fall into three categories:
- On the Bus. People who are “on the bus” with change understand the need for transformation and are ready to adapt, even if there are uncertainties. They’re willing to embrace the unknown because they see the bigger picture.
- Off the Bus. Some people always prefer the status quo and resist the idea of change altogether. They can be vocal in their opposition and may be unwilling to engage constructively.
- One Foot On, One Foot Off. Perhaps the most challenging group, these individuals — often middle managers — may outwardly support the transformation to leadership while privately expressing doubts or even negativity to their teams. This group can breed a sense of mistrust and create a toxic work environment if not addressed.
Successfully managing an AI transformation requires a deliberate focus to align all three groups. Champions can help bring the “on the bus” group along and may even sway some of those with mixed feelings. For those firmly “off the bus,” it may be necessary to have frank conversations about their future with the organization. The ones who are half-on/half-off have an important decision to make. How you conduct these conversations and lead them to an appropriate, professional decision may help determine the success or failure of your initiative.
Some employees (and even senior executives) may express skepticism of the plan, saying, “We’ve tried this kind of transformation before, and it never sticks.” These individuals may be jaded from past initiatives that failed to deliver. This time, however, the stakes are higher. The pressure (often straight from the Board) to make AI transformation work is intense, and the future of the business depends on getting it right. Acknowledging the concerns of skeptics while maintaining a clear and consistent vision is key to winning them over.
One of the most common missteps in AI-driven change management is assuming that non-technical employees don’t need to be involved. The reality is that AI will impact everyone’s work in some way, whether directly or indirectly, so it’s important to involve all employees early on in the process. Helping one another understand the implications of AI on their day-to-day responsibilities is essential for ensuring a smooth transition. It’s about more than just understanding the technology; it’s about understanding how it will change their work and, ultimately, their careers.
Ultimately, AI transformation is about people, not just technology. It’s easy to get caught up in the excitement of new AI tools and platforms, but the real determinant of success is how well the organization supports its people through the change. The focus should always be on solutions and the employees who will implement them, rather than on the technology itself.
AI transformation isn’t a short-term project. It’s a journey that will likely span three to five years, with continuous iteration, learning, and adaptation. To succeed, organizations must invest in their people — building skills, supporting change, and fostering an environment where employees feel empowered to contribute to the transformation.
Remember: You’re not just upgrading technology. You’re investing in the next phase of your company’s history.
Misti Fragen is the VP of Change and Transformation at Tricon Infotech. Find her on LinkedIn or contact her at [email protected].
