Australian businesses are facing growing pressure to strengthen leadership capabilities as artificial intelligence reshapes workplaces, with new research showing only half of employees believe their leaders are prepared for the shift.
The study, commissioned by COS - Complete Office Supplies, found that just 50% of Australian workers are confident their leadership teams have the right skills to navigate a future shaped by automation and AI. The findings come amid accelerating AI adoption across industries, as organisations increasingly integrate digital tools into daily operations and long-term business strategies.
The research, based on responses from more than 1,000 Australian employees, revealed a growing divide in how workers view leadership readiness. While some employees said their organisations are actively embracing innovation and experimenting with emerging technologies, many others reported a lack of clear communication, structured planning and practical guidance around AI implementation.
Among employees who lacked confidence in their leaders, one-third said businesses were failing to provide adequate training and development opportunities. Another third believed executives were adapting too slowly to rapid technological change, raising concerns over organisational preparedness and workforce stability.
The findings also highlighted notable regional and industry differences. Workers in the Northern Territory and Tasmania recorded the highest confidence levels in organisational leadership during the AI transition, at 83% and 63% respectively. In contrast, New South Wales and Victoria reported significantly lower confidence at 49% and 43%.
Sector-specific data showed employees in IT and telecommunications were the most confident in leadership readiness at 67%, followed by finance at 58%. Confidence levels were considerably lower in travel and transport at 39%, while healthcare employees reported 44% confidence in leadership preparedness for AI-driven transformation.
On the findings, Belinda Lyone, Co-CEO, COS said, “AI is evolving faster than any of us can fully grasp, and the reality is that no one can claim to be a true expert yet or fully understand the future impact. One of the most powerful steps leaders can take is to bring people together, from strategists to emerging experts and curious thinkers, to openly explore how AI could shape their business. Creating these forums accelerates learning, uncovers opportunities, and helps employees feel part of the journey rather than bystanders to change.”
“These findings highlight how Australian workers want clarity and proactive leadership. Ultimately, uncertainty creates anxiety, so when leadership fails to communicate a vision for how AI will be integrated, employees can feel left behind or undervalued. This isn’t just a technology challenge; it’s a cultural one. Businesses need to actively bring their people along on the journey.”
The research reflects a broader shift in employee expectations, with workers increasingly looking to employers for long-term investment in leadership development, digital skills and future-focused workforce planning. The report stated leadership and employee development have remained central to its growth strategy since the business was established in Sydney in 1977. The company has since expanded into a national operation generating more than $300 million in revenue, employing over 700 staff and operating warehouses across every Australian state and territory.
As part of its leadership development strategy, COS provides all employees with access to a dedicated learning and development budget that can be used for role-specific training or future career growth within the company. Over the past year, many employees have used the programme to complete AI-focused learning initiatives aimed at improving digital capability and future workplace readiness.
The company also runs organisation-wide learning programmes designed to encourage collaboration, innovation and experimentation across teams. These initiatives often evolve into ongoing working groups that explore and test new ideas to help the business adapt to technological change.
“Upskilling is not a one-off exercise,” said Lyone. “It’s an ongoing commitment. By supporting our team through structured learning pathways, we are equipping them with the critical thinking, adaptability, and leadership skills needed to navigate uncertainty. This gives our people confidence that they will remain relevant in an AI-driven future.”
The findings further underline the growing connection between leadership capability, employee engagement and productivity in an increasingly automated economy. Businesses that encourage continuous learning and open experimentation are more likely to retain employee trust and maintain long-term workforce stability.
“As leaders, our role is not to have all the answers on AI but to create an environment where learning and experimentation are encouraged,” Lyone said. “Employees who see their leaders investing in knowledge and skills are more likely to feel motivated, secure, and committed to the organisation’s long-term vision.”
COS believes organisations must embed continuous learning into workplace culture, encourage cross-functional experimentation and balance technical capability with human-centred leadership skills such as communication, adaptability and emotional intelligence. The company said organisations that successfully combine AI adoption with workforce development are likely to be better positioned for long-term growth and resilience.