The reality behind AI's alluring dazzle.

A few weeks ago, I was in Los Angeles for Deloitte’s global leadership summit. It was a gathering of our senior leaders from around the world, all focused on the opportunities and challenges ahead, and particularly, on what AI means for how we lead, build, and deliver.

The venue was the iconic Beverly Hills Hotel which has hosted everything from the Golden Globes to presidential galas and press conferences that went on to become part of history. This type of setting, with all its old-Hollywood dazzle carries its own kind of weight. The past lingers in the décor. All those polished floors and mirrored walls have seen more than a few turning points.

But our attention was on AI.

In every meeting room in that hotel, the demos were sophisticated and impressive. We’re now seeing AI agents that can instantly analyse and draw insights from financial statements. A digital workforce capable of building digital solutions end-to-end. In the healthcare space, we are seeing how AI is already mapping breast cancer pathways more effectively, giving patients and clinicians better outcomes.

We saw generative AI tools that are already helping teams generate content, summarise reports, analyse legal documents, spot anomalies in operations, and in most cases, fundamentally shift how work gets done. The ambition in those rooms was seriously head spinning and we all agreed over our coffees that the speed at which AI space is evolving is still catching many off guard.

But the more time I spent in those rooms, the more I noticed the gap between the dazzle and the day to day doing. Because for all the energy and enthusiasm when it comes to the amazing ways AI can be applied, the reality is that most businesses are not ready for what this technology requires.

Not in terms of understanding, because awareness is high. And not in terms of ambition, because the intent is strong. But there’s a gap in the foundations that actually allow AI to move from prototype to practice. In areas like decision-making structures, governance processes, technology integration, leadership alignment, workforce readiness.

Most organisations already have AI tools in some part of the business. What they lack is the connective tissue. They haven’t yet built the systems that allow change to travel quickly.

This isn’t a matter of access. Most organisations already have AI tools in some part of the business. What they lack is the connective tissue. They haven’t yet built the systems that allow change to travel quickly. They haven’t removed the friction that keeps good ideas locked in small teams. They haven’t made the operational changes that let innovation scale without stalling.

I’ve seen exceptions, of course. Many of those businesses we work with have risk and tech teams working side by side, where decisions are made in days, not months, and where people know not just what AI can do, but what they’re allowed to do with it.

But many companies are still structured for a different pace, a different level of certainty, a different kind of control. And AI, by its nature, pushes against all of that.

So we end up with a strange sort of tension. On one hand, we have all the symbols of progress, the events, the announcements, the demos, the flashy dashboards. On the other, we have a leadership and operating model that still defaults to caution, complexity, and control. This is where the real work lies.

The organisations that will move forward quicker are the ones doing the quieter, more difficult work of making space for it: understanding hierarchies, simplifying governance, encouraging responsible risk-taking, building fluency across functions. They’re not waiting for the perfect strategy. They’re moving and learning in real time.

This means letting go of the idea that transformation can be planned in neat, linear stages. This means that organisations that will benefit most are the ones willing to design for agility.

Back in LA, walking through the Beverley Hills Hotel black-and-white portraits of old stars after my meetings, I kept thinking about how perfectly the setting reflected the moment.

With AI, the initial dazzle will also fade. The headlines will shift, but the organisations that invest now in their people, in their systems, in their ability to actually absorb change will be the ones that shape whatever this next era becomes.

AI won’t transform your business. But it will force you to decide if you’re willing to. This particular Hollywood ending hasn’t yet been written.