AI transformation: 50% leaders say companies underestimate change management

Companies investing in artificial intelligence and other new technologies may be underestimating one of the most important factors behind successful transformation: change management. According to a survey by Biz Staffing Comrade Pvt. Ltd., 50% of senior leaders said organisations most often underestimate the change-management effort involved when investing in technology, AI or transformation.

The findings emerged from an executive masterclass on The Resilient Organisation, hosted by Biz Staffing Comrade and moderated by Dr Varadharaju Janardhanan. The session brought together senior HR leaders to discuss the challenges organisations face while executing business priorities.

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People remain central to technology transformation

The survey indicates that technology adoption is not simply about implementing a new tool or platform. Organisations also need to prepare employees for changes in their roles, workflows and ways of working.

Another 23% of leaders identified the capabilities required to use technology effectively as the aspect organisations most often underestimate. A further 18% pointed to the impact of technology on existing roles and operating models. Only 9% said companies underestimate the time required to realise return on investment.

Together, the findings suggest that more than nine in ten leaders surveyed see challenges related to people, capabilities or operating models as more significant than the time required to achieve technology returns.

AI adoption requires more than technology

Puneet Arora, Managing Partner at Biz Staffing Comrade, said companies are budgeting carefully for technology while treating adoption as an afterthought. He noted that the return on AI would depend on how effectively organisations redesign roles, skills and ways of working around the technology.

The survey's findings also align with insights from Biz Staffing Comrade's 2025 HR Leaders' Roundtable, where 27.3% of HR leaders identified inadequate communication and change management as a key barrier to AI adoption, second only to a lack of trust in AI-driven decisions.

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Operating models need to evolve

The broader survey also highlights the importance of organisational systems during transformation. 41% of leaders said operating models, processes and systems would become the biggest constraint if their organisation had to grow twofold in three years, while 36% cited culture, alignment and decision-making. Critical talent accounted for 14%, while leadership capacity stood at 9%.

The findings point to a shift in how organisations approach talent and technology. Rather than focusing only on hiring people with new skills, companies are increasingly looking at whether existing roles, processes and capabilities can adapt to changing business requirements.

Biz Staffing Comrade Managing Partner Aditi Rana said talent acquisition is evolving from a hiring function into a capability function, with organisations increasingly seeking to identify whether future capabilities should be built through hiring, development or redeployment.