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AI Won’t Fix a Broken Business—But It Will Expose It

New Business Agility Institute Report: AI is a Leadership and Tech Challenge

AI is often touted as a game-changer for business, promising faster decision-making, enhanced productivity, and breakthrough innovation. But here’s the catch: AI doesn’t operate in a vacuum.


According to new research from the Business Agility Institute, From Constraints to Capabilities: AI as a Force Multiplier, AI’s potential is often undermined by organizational constraints like slow decision-making, rigid budgeting cycles, and outdated workflows. Instead of solving business problems outright, AI ends up amplifying them—meaning that unprepared organizations may find themselves struggling rather than thriving.

ALJ Founder and CEO Pete Behrens contributed to this report as a member of the Business Agility Institute's Expert Panel.

From constraints to capabilities ai as a force multiplier

AI as a Force Multiplier—For Better or Worse


The report highlights AI’s role as a “force multiplier,” capable of delivering business improvements ranging from modest gains (20%) to transformative leaps (320%). However, achieving these benefits isn’t just about adopting AI—it’s about creating the right conditions for AI to succeed. Organizations stuck in bureaucratic decision-making or siloed workflows often fail to capitalize on AI’s potential, while those embracing agility, dynamic funding, and a learning culture see much greater returns.

Leadership Matters More Than Ever


One of the report’s most critical findings? Leadership plays a significant role in unlocking AI’s benefits. The study points out seven capabilities that separate winners from under-performers:


  • Cultivating a learning organization: Leaders who encourage continuous learning and adaptability ensure their teams evolve alongside AI.
  • Prioritization: Without clear priorities, AI initiatives risk becoming distractions rather than strategic assets.
  • Dynamic funding: Traditional budgeting processes slow down AI innovation—organizations need more flexible, real-time resource allocation.
  • Creative workflow optimization: AI thrives in environments where workflows are designed for speed and integration, rather than constrained by silos and inefficiencies.
  • Balancing governance and risk: Striking the right balance between AI oversight and innovation ensures AI is used ethically and effectively.
  • Sensing and responding proactively: AI provides predictive insights, but leaders must be prepared to act on them quickly.
  • Realizing people’s potential: AI isn’t here to replace employees—it’s here to enhance their capabilities. Organizations that invest in upskilling their workforce unlock the greatest value. 

AI Alone Won’t Drive Business Outcomes—Leadership Will


The research makes one thing clear: AI’s success is a leadership challenge, not just a technology challenge. Organizations that treat AI as a plug-and-play solution will likely see disappointing results. But those that rethink leadership, structure, and decision-making can harness AI to drive unprecedented business impact.


So before investing in AI, let’s ask ourselves: Is your business designed to operate at the speed of AI? If not, AI won’t solve your problems—it will simply expose them.

Interested in learning more about the intersection of AI and leadership? Visit the ALJ AI Leadership Lab!

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About the Author


Betsy Piland is the Marketing and Communications Manager at Agile Leadership Journey. She has spent the bulk of her career working in the higher education, healthcare, corporate learning and development, and nonprofits—always looking to tell a compelling story that will inspire audiences into action.


When not at work, she can be found digging in her garden, baking something delicious, and spending time with her husband, daughter, and two rescue dogs.


Connect with Betsy on LinkedIn.

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