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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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How much do aspiring CEOs really need to know about AI? More than they think

Lily Mae Lazarus
By
Lily Mae Lazarus
Lily Mae Lazarus
Reporter, News
Down Arrow Button Icon
Lily Mae Lazarus
By
Lily Mae Lazarus
Lily Mae Lazarus
Reporter, News
Down Arrow Button Icon
February 6, 2025, 3:23 PM ET
AI expertise will become a key differentiator for CEO aspirants.
AI expertise will become a key differentiator for CEO aspirants.

The rapid advancement of AI is reshaping the skills current and future leaders need to succeed in C-suite roles.

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More than 82% of CEOs and senior leaders believe that AI will have an extreme or significant impact on their business, according to Korn Ferry. As AI-driven decision-making, automation, and data intelligence become integral to business strategy, executives must develop a deep understanding of AI’s capabilities, limitations, and ethical considerations. Beyond technical literacy, effective leadership in the AI era will require familiarity with seamlessly integrating AI into operations, innovation, and customer experiences.

“There is no substitute for hands-on experience,” says Eric So, codirector of the AI Executive Academy and a professor at MIT Sloan School of Management.

For those with corner-office ambitions, his advice is clear: Actively engage with AI systems. Experimenting with different models allows leaders to develop a nuanced understanding of where AI excels, where it falls short, and how rapidly the technology is evolving.

Sylvain Duranton, global leader of BCG X, the consultancy’s tech and design division, cautions that some leaders mistakenly fixate on identifying the next breakthrough technology rather than prioritizing hands-on experience with AI. To be truly future-tech-ready, he stresses, leaders must focus on integrating AI into their workflows and understanding its practical applications. “Don’t focus on picking the ‘right’ next technology because it will change,” Duranton explains. 

Instead, rising CEOs should build a well-rounded understanding of AI, including foundational coding knowledge, exposure to IT challenges, and direct experience deploying AI initiatives from either a business or technical perspective.

“There needs to be real hard work by business people to reconfigure companies around AI,” Duranton says. “And for that, future leaders need to have firsthand experience.” 

However, understanding the mechanics and applications of AI is only part of the equation. Aspiring CEOs must also be fluent in clearly articulating its business impact.

“Understanding its capabilities, the necessary investments, and how it can transform workflows, operating models, and business strategies is essential,” says Dan Priest, PwC’s U.S. chief AI officer.

Sparky Zivin, senior managing director at CEO advisory firm Teneo, echoes this sentiment, emphasizing that today’s executives must effectively translate emerging technologies into tangible business value by demonstrating the measurable bottom-line benefits.

The ability to link business impact with technology will be a key differentiator in one’s pursuit of the corner office. According to BCG’s 2025 radar survey, 75% of polled executives ranked AI as one of their top three priorities, but only 25% reported seeing significant value from it. 

“Having a vision for how AI will transform the enterprise—how it will reshape strategies, enhance competitiveness, and drive economic growth—while ensuring that humans remain at the center of that value proposition is essential for organizational change management,” Priest says.

By balancing strategic thinking with technological fluency, aspiring CEOs can stay agile in an era where innovation is accelerating at an unprecedented pace. 

“The next kind of CEO has to be able to adapt and evolve quickly to keep pace with that change, knowing that it’s probably going to still be a bit out of everybody’s reach,” Zivin says.

About the Author
Lily Mae Lazarus
By Lily Mae LazarusReporter, News

Lily Mae Lazarus is a news reporter at Fortune.

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