“Leadership is not just about giving energy… it is unleashing other people’s energy.”
– Paul Polman
IN today’s rapidly changing environment, business leaders face the dual challenge of leveraging emerging technologies such as artificial intelligence (AI) and digital systems, while also committing to sustainable practices that embrace green technologies.
This article aims to analyse how private sector leaders are navigating these transformative landscapes amid constraints, emphasising the importance of commercial decision-making and investment discipline.
As the global economy grapples with an unpredictable landscape shaped by geopolitical tensions and economic fluctuations, businesses find themselves at historic crossroads. The stakes have never been higher: How do we leverage AI to drive efficiency while adhering to strict environmental regulations? How do we digitally transform our operations amid regulatory constraints and talent shortages?
This situation forces leaders to balance aspiration with pragmatism, pushing them to rethink traditional operational models and investment strategies.
The traditional focus on policy intent has often overshadowed the need for tangible commercial strategies in the adoption of AI and green technologies. While many governmental frameworks aim to incentivise sustainable practices, the reality is that businesses must make pragmatic decisions based not only on regulatory frameworks but also on market demands and the availability of resources.
In a recent survey by Deloitte, 78% of executives reported that AI adoption is pivotal for their organisations to remain competitive. Yet these leaders face barriers, including high implementation costs, a shortage of skilled talent, and the need for innovative business models that leverage digital transformation effectively.
The challenge is not merely about adopting new technologies, but rather about reshaping the core of business operations to integrate these technologies sustainably and profitably.
To put this into perspective, a report by the World Economic Forum indicates that a staggering 70% of businesses are investing in AI technologies, yet only 31% believe they have a strong strategic direction to implement these technologies effectively. Capital constraints remain pressing, with many organisations acknowledging that their budgets for technological innovation are decreasing.
According to PwC’s Global Digital IQ Survey, 74% of executives say their organisations face significant challenges in attracting talent skilled in AI and digital technologies. These figures suggest that while intent exists, execution remains fraught with obstacles.
However, the discourse must shift from mere recognition of these challenges towards understanding how they affect operating models and investment discipline. Leaders must recognise that understanding market-access nuances and regulatory dynamics is as critical as the technology itself.
Companies are increasingly focused on creating sustainable business models, reflecting evolving consumer demands for corporate responsibility. A McKinsey report notes that 47% of executives believe corporate sustainability initiatives will lead to better financial performance over time.
At the core of this transformation lies a responsibility that transcends quarterly earnings: the duty to serve humanity. Business leaders must recognise their role in fostering social well-being and environmental stewardship.
The United Nations’ Sustainable Development Goals (SDGs) provide a blueprint for this responsibility, challenging corporations to adopt practices that positively contribute to society. This perspective aligns with an emerging leadership style focused on conscious capitalism – where profitability and purpose are pursued in equal measure.
As custodian leaders, there is an imperative to scrutinise the ethical implications of AI deployment, particularly with regard to job displacement. Research from the MIT Sloan School of Management suggests that while AI and automation can enhance productivity, they could displace roughly 15% of the global workforce by 2030, highlighting the urgent need for reskilling initiatives.
The ethical deployment of these technologies must therefore include strategies for human development. Consequently, leaders should explore frameworks that prioritise talent development alongside technological advancement.
Leadership in this context necessitates a robust approach to investment discipline. This includes not only financing innovations in AI and green technologies but also identifying partnerships that align with sustainability missions.
As illustrated by the 2022 Global Sustainability Investment Review, sustainable investing in developed markets reached $35.3 trillion, signifying a clear trend despite economic challenges. This scenario compels leaders to assess not only immediate financial returns but also the long-term impact on their organisations’ brands and on society.
As businesses challenge the status quo, evolving operating models should embrace agility and transparency. Companies leading the charge, such as Unilever and Tesla, have redefined traditional frameworks by interweaving technology, sustainability, and a deep understanding of stakeholder expectations.
Unilever’s Sustainable Living Plan effectively integrates sustainability into its business model while improving profitability and market share. Similarly, Tesla’s innovation culture demonstrates how sustainable products can yield remarkable financial success, challenging perceptions that green initiatives are merely cost centres.
Dear leaders, as we move forward, it is crucial to exemplify thoughtful decision-making while embedding principles of sustainability and community focus into operational models. The questions leaders must engage with include:
How can we align our business strategies to not only meet regulatory requirements but exceed them in ways that add value to stakeholders?
What investments in AI and green technologies will allow us to leverage our unique market position while driving sustainable growth?
How can we ensure our workforce is motivated and equipped to adapt to the rapid changes brought about by digital transformation?
In what ways can we integrate our corporate social responsibility (CSR) initiatives with our core business strategies?
How do we balance short-term financial pressures with long-term commitments to sustainability and ethical leadership?
This reflection is not merely introspective; it is a necessary engagement for every leader committed to navigating the complexities of the modern business environment. Embracing these changes will not only define their legacy but also significantly influence the well-being of the nations in which they operate.
In the face of challenge, business leaders have the power to drive meaningful transformation. Leadership today is defined by the ability to integrate technology and sustainability while maintaining operational excellence and profitability.
Given the current economic landscape, it is imperative that leaders recognise the intersection of AI, green technologies, and digital transformation as more than trends – they are both the present and the future.
By focusing on sound decision-making, adopting innovative business models, and championing sustainability and social responsibility, leaders can navigate today’s challenges and build a future that prioritises profitability, responsibility, and societal well-being. The time to act is now.
The views expressed here are those of the writers and do not necessarily represent the views of Sarawak Tribune. The writers can be reached at argenisangulo@gmail.com and lawleepoh@gmail.com.
