AI, XR and Innovation don’t fail businesses – leaders do when they don’t have the new competencies and mindset needed to create significant new value. And realize to do this it takes Tools + Vision + Strategic Thinking + being Digital Savvy + knowing What Will Have Value + providing a Great UX + having a Human – Centric approach + + .
Why are a lot of leaders struggling to meaningfully improve outcomes and create new value with AI, XR and Innovation ?
While tools are purchased, platforms are introduced, and people advised to use various products (ie: ChatGPT, Copilot, AI Agents, etc.) – unfortunately, there is frequently confusion and frustration with some innovation initiatives not delivering the new value or desired outcomes.
It’s not because leaders lack vision. It’s because of lack of project specifics or lack of technology acumen in the C-Suite, or the execution is rushed, reactive and often disconnected from the people it’s meant to empower. Knowing how to gain meaningful benefits from AI or XR or Business Innovation tools isn’t magic – it’s a mindset shift and a reflection of leadership competency. And without clear direction and purpose, they quickly turn into shiny tools that no-one knows how to use effectively – or worse, one that quietly fizzles out before it ever makes an impact.
To avoid these issues, get past the tendency to –
1. Rush in without good look ahead, clear strategic intent, need to solve a major problem or to make good on a new opportunity
This starts with a plan, clear objectives, and being open minded – curiosity and being competent at discovery to address a problem or to make good on opportunity. One of the biggest mistakes is leaders investing new tools without knowing what they’re actually trying to fix, change, improve or explore. There’s no alignment with business goals, workflows or people – just a vague hope that the new tools will somehow improve productivity or deliver meaningful new value. View it as like buying a coffee machine for the office – without knowing preferences or if people drink coffee !
A big mistake is leaders investing in new tools without knowing what they’re actually trying to fix.
What’s the fix ?
Start with intent or the objective to be achieved by determining – Where is the pain ? Where is the opportunity ? Where are people or the process bogged down ? What’s causing burn out or people being blocked from doing high-value work ? What’s wasting people’s time that could be better spent on strategic thinking, relationship building or creativity, assessing opportunities ?
When you focus on the real challenge or friction, that’s where new tools can become a meaningful support system – not a gimmick or leading to Innovation Theater ! It’s not about chasing the newest tool or fad, but rather about asking –
- Will this help us create new value – to expand relevance and revenue ?
- Will the new tool meaningfully improve and expand our competencies ?
- Does it reflect the kind of business and culture we want to build ?
And recognize, without clarity, AI, XR and Innovation can add to the challenges – while with clarity, they are catalysts for positive change to meaningfully improve outcomes with better look ahead as well as better managing change and mitigating risk.
2. Treating new tools as a shortcut to create favorable optics – not about enablement, learning, discovery, being better at collaboration, creating new value, etc.
There’s a world of difference between working with AI, XR and Innovation tools versus delegating the task or handing over the projects to others. For example, while AI can draft content, summarize meetings, generate fresh ideas in seconds, etc. – but if you’re using it to skip the thinking part, you’ll end up with bland, generic output that doesn’t reflect your view, your values or your insight. The leaders, seeing real impact, aren’t using AI to replace human input – they’re using it to extend it. To sharpen ideas. Pressure-test decisions. Refine messaging. Explore new directions. With this, it’s key to remember that if you step too far back and let AI run unsupervised, you risk losing the very things that make your business distinct – uniqueness, brand trust, operational nuances, human connections, etc. And given this also applies to improving outcomes with XR tools and the mindset to innovate for impact – it’s essential Leaders learn the new tools and concepts.
AI is brilliant – but it’s still learning. It needs a human in the loop demonstrating leadership to make the work meaningful and rewarding.
What’s the fix ?
Stay close. Review everything AI produces before it goes out the door. Coach your team on what ‘ great ’ looks like. And before you start pumping out prompts, make sure your tool actually knows you – your brand voice, your values, your customers, your tone.
AI is brilliant – but it’s still learning. It needs your leadership to make the work relevant and personal. Similarly, ensure the results of XR and Business Innovation initiatives are producing the best outcomes possible.
3. Leaving the team behind
Here’s the part that often gets missed – and yet it’s the difference between AI / XR and innovation tools collecting dust or creating real value and momentum – your people. You can buy the best tools but if people don’t know when or how to use them – or why – they’ll be reluctant to engage, or worse, misuse the tools and lose confidence in the process, the project, and in the decision makers ! Recognize most people aren’t resisting AI, XR or doing Innovation – they’re just unsure what’s expected or what they need to do to meaningfully improve outcomes. And frequently they’re afraid of doing something wrong since they’ve been handed powerful tools without the context, coaching or safe space to explore. And when that support is missing, curiosity shuts down. Experimentation stalls. The situation stops feeling like an opportunity and starts feeling like a risk with many unknowns.
Realize that clear, human-focused and intentional leadership enables progressive people and tools into something truly transformative.
What’s the fix ?
Create space for learning. Host onboarding sessions. Share quick wins and use cases. Enable people to explore, tinker, etc. and learn what’s needed to effect change in low-stakes areas before rolling new initiatives into mission-critical projects by –
- Encouraging curiosity and asking questions.
- Building capabilities and competencies as well as functionality. Further, don’t just teach which buttons to press, but help people understand how the new tools fit into corporate strategy, build brand value, and better position the business for success.
- Recognizing being good at using new tools doesn’t come from one workshop, but develops with increasing familiarity and growing through small experiments, ongoing conversations, etc.
- Leadership that sees people as the priority – with a “ Human-in-the-loop ” steering projects to success.
4. Analysis paralysis or making impulsive decisions – not leading with informed intent
Recognize the importance of organization leadership providing clear, human-focused and intent to utilize new tools and processes to do something transformative and meaningful. So, before your next rollout, pause and ask – Are we solving a real problem ? Are we partnering with a powerful tool – not offloading to it ? Are we empowering and lifting people up, and providing new opportunities ? Are we addressing their concerns about how change will affect them – today and in the future ? What else should we consider (to improve project success or business outcomes) ?
In conclusion, good leadership is about leveraging competencies, creating synergies, and enabling people to develop new thinking and competencies so the organization is better able to raise the bar with new value and advantages.
And recognize AI and XR tools plus the mindset to Innovate for Impact will change how people work and redefine what’s possible.
Jan 14, 2026 – By CEO Magazine / CAIL CAIL Innovation commentary
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