AI at work: 5 hard truths every business leader needs to hear

Techday NZ

a day ago

If you're feeling behind on AI, you're not alone. According to Talent's latest AI survey, nearly 48% of organisations say they're still in the experimental or pilot phase of AI adoption. This figure might sound like a red flag but according to their experts, it's a natural and necessary step.
In their most recent webinar, 'What's next: How is AI really changing the way we work?', they unpacked the realities of AI adoption with two sharp minds in tech and recruitment: JP Browne, Practise Lead from Talent Auckland, and Jack Jorgensen, General Manager – Data, AI & Innovation at Avec, their IT consultancy arm. Together, they explored the real blockers, risks, and opportunities leaders need to wrap their heads around in 2025.
1. Most companies are still figuring it out
The gap between AI hype and delivery is wide, and tinkering with tools like ChatGPT doesn't mean your business is ready to run AI in production. As Jack points out, "There's a big difference between punching in a search query and building something deterministic and robust enough to run in enterprise systems […] Having organisations stuck in that pilot stage isn't a bad thing. It means they're finding the limitations of the tech and discovering what it can actually do well"
The main takeaway both experts emphasised were: Don't rush to a "full rollout." Use the pilot phase to build guardrails, clean up your data, and decide what AI is actually for in your business.
2. Executive urgency doesn't equal ownership
Talent's recent AI survey found that for 31% of organisations, IT or technology departments are seen as the primary drivers of AI adoption. Alternatively, Jack has observed that, "IT isn't driving AI, they're just putting up the guardrails. However, because execs don't know who should own it, they're lumping it in tech's lap."
According to JP, "For the first time ever, I've got IT leaders saying, 'We can't implement what you want until we've fixed security and infrastructure.'" 41% of leaders say their biggest blockers are lack of strategy and unclear goals. Execs want AI yesterday but, without a clear owner or roadmap, most strategies stall.
The result? IT teams are stuck between enabling the business and playing the bad guy. And without a cohesive plan, budgets dry up fast.
3. People are nervous
In the webinar, JP stated, "You can't bury your head in the sand. AI's affecting workflows and job design, and people are understandably unsure where they fit." However, in the midst of such concerns, Jack reassured, "I'm seeing less job displacement and more evolution. But we need to be honest about where AI changes the game."
The fear around AI is real, and it isn't just about job losses. Talent's AI survey showed: 60% are concerned about ethics or compliance risks
58% fear loss of human oversight
57% worry about inaccuracy and hallucinations
Business leaders need to address these fears head-on, not just with reassurance but with transparent, actionable education.
4. Security is the #1 barrier – and that's a good thing
46.2% of leaders said security concerns are the top reason they're cautious about AI, and Talent experts say that's the right instinct. Between real-world data breaches and shadow AI usage, the risks are everywhere.
"If I could rate that 46% stat above 100%, I would. Security and compliance should be front of mind. Full stop," shared Jack.
From accidental uploads of entire CRMs into ChatGPT (yes, that really happened) to AI-generated code opening up backdoors for attackers, this is not the time to "move fast and break things."
5. AI is quietly changing workforce planning
The shift is subtle, but it's coming. One in four leaders say they're actively exploring how AI might reshape the roles they hire for and 12.1% surveyed are already using it to reduce manual work.
As a longtime recruiter in New Zealand, JP shares his observations, "We're not seeing mass hiring of AI engineers, but we are seeing increased demand for system engineers and data people." While AI isn't replacing people yet, it is changing the kind of people you need.
Conclusion: AI readiness is a journey, not a silver bullet
From security fears to strategy gaps, the state of AI in business today is still murky, but that's not a reason to stall. As Jack puts it, "If you're jumping in without looking, you're probably going to break your ankles. But if you plan, pilot, and build velocity? That's the win."
So, the real question isn't whether AI should be part of your business because it already is, but do you know where, how, and why it's showing up?
Want to find out what else Talent's AI survey revealed? Access the full report.