The Hidden Factor Behind Successful AI Adoption

Eden Smith • September 2, 2025

The Role of Data-Literate Boards

Artificial intelligence is reshaping industries, driving efficiencies, and unlocking new opportunities for growth. Yet for all the excitement, many AI projects fail to move beyond pilots or struggle to deliver real business value. Why? More often than not, it’s not the technology holding organisations back, it’s the lack of data literacy at the leadership level.


When boards and senior executives don’t fully understand the fundamentals of data, its limitations, or its potential, they can’t make the informed decisions needed to scale AI responsibly and effectively. Data literacy at the top table is the hidden factor that often determines whether AI adoption becomes a success story or a costly misstep.


Why Leadership Buy-In is the Starting Point


For AI initiatives to succeed, they must be backed by strong leadership. Boards set the vision, allocate resources, and define the metrics of success. Without their buy-in, projects risk being siloed in IT departments, underfunded, or disconnected from the broader business strategy.


Data literacy equips leaders with the ability to ask the right questions:

  • What data do we actually have, and is it reliable?
  • How do biases in the data or models impact outcomes?
  • What risks and ethical considerations need to be addressed?
  • How do we measure ROI beyond short-term cost savings?

When leaders can engage with these questions confidently, AI projects are more likely to be aligned with business goals, better governed, and more impactful. Importantly, data-literate boards can also communicate AI’s purpose and progress more clearly to investors, regulators, and employees, creating trust and transparency.


Bridging the Gap Across Departments


Successful AI adoption isn’t just about boardrooms and data science teams. It requires cross-departmental understanding and collaboration. Finance teams must interpret AI-driven forecasts. HR leaders need to assess AI’s role in workforce planning. Operations teams have to trust predictive models for supply chain or safety decisions.


This is where data literacy becomes an organisational competency, not just an executive one. By fostering a shared language around data and AI, organisations can avoid the common pitfalls of misalignment and mistrust. Employees who understand the basics of how AI works, and how it applies to their roles, are more likely to adopt it confidently, rather than resist it out of fear or uncertainty.


Creating this culture of literacy requires investment in training, but also in accessible tools and processes. Dashboards, visualisations, and natural language interfaces can make data insights easier for non-technical stakeholders to grasp, empowering everyone to participate in AI-driven decision-making.


Data Literacy as a Strategic Advantage


As AI adoption accelerates, the competitive edge won’t come from technology alone. Cloud platforms, algorithms, and machine learning frameworks are increasingly commoditised. The real differentiator will be how effectively organisations can embed AI into their strategy and operations, and that starts with data-literate leadership.


Boards that embrace data literacy don’t just understand the risks and opportunities of AI, they model a culture of curiosity, accountability, and informed decision-making that cascades through the business. They are better positioned to balance innovation with governance, to spot new opportunities early, and to build trust with stakeholders inside and outside the organisation.

In this sense, data literacy at the board table isn’t just a hidden factor behind AI adoption, it’s a fundamental requirement for sustainable, long-term success in the data-driven economy.


By Christa Swain October 17, 2025
There is a moment in every transformation journey when organisations must decide: 👉 Will we protect what we’ve built? 👉 Or reinvent what’s possible? On 17 October , the Data Leaders Executive Lounge gathered senior data leaders to explore this very question. Hosted under Chatham House rules, the evening’s theme - “Risk to Reinvent” - brought together sharp minds, bold ideas, and honest reflections on how data leadership is (and must be) reshaping business strategy. Kate Sargent, Chief Data Officer at Financial Times, and Eddie Short, a renowned transformation and AI leader led the conversation. Their perspectives framed a candid discussion about shifting from process-led thinking to data-centric, predictive, and commercially intelligent business models. From Process-Led Legacy to Predictive-by-Design Futures For more than a century, businesses have been organised around process - a model designed for 19th-century manufacturing. But today, 91% of the UK economy is service-based. Yet many organisations still operate as though process is king. This disconnect surfaced repeatedly in the discussion: leaders often can’t articulate what capabilities actually matter to deliver strategy. Instead, they talk in terms of technology platforms - “We need Oracle” or “We need Pega” - rather than customer value or strategic outcomes. The call to action: ✅ Reframe the backbone of the enterprise - where data and AI are the orchestrators, and processes play a supporting role. ✅ Shift from “backward-looking by design” to “predictive by design” architectures - operating models that drive agility, growth, and resilience. The Capability Flywheel & The Intelligent Enterprise Eddie Short shared the evolution of a capability flywheel model developed over 20+ years - integrating people, process, technology, data, and AI to create the Intelligent Enterprise. This approach starts by asking: What must this business excel at to win? How can data and AI supercharge those capabilities ? Many executive teams can’t answer those questions clearly. And if capabilities aren’t defined, a data strategy is destined to be reactive rather than transformational. The Trap of Technology-Led Change One of the most striking points of consensus... Organisations are spending heavily on technology but not transforming. Why? Because technology alone doesn’t solve business problems . A culture of FOMO, vendor pressure, and shiny-object syndrome often leads to tech purchases without clear value articulation. Meanwhile, the real differentiator - execution, adoption, and value creation - gets overlooked. Data Value Over Data Tech: A Necessary Mindset Shift Kate Sargent outlined how the Financial Times is deliberately reframing its approach to data value measurement .  Rather than treating data as an abstract asset, the FT is embedding a “value funnel” into its operating model. This funnel tracks the potential , captured , and realised value of data initiatives, surfacing where value is lost - whether through data quality issues, resourcing gaps, or lack of adoption. The goal? To create a shared understanding of data value across the organisation, linking it directly to strategic and commercial outcomes. This is data not as “back office plumbing” - but as a driver of growth. Case in Point: Reinvention in Retail A real-world example brought the principles to life. A Romanian retailer - Profi - facing stagnant digital performance, shifted from risk avoidance to experimentation: Deployed Azure AI and revamped its digital app to promote bundled meal purchases. Leveraged ChatGPT and Midjourney to rebrand a wine range - from ideation to market in weeks. Result: 50% increase in basket size and repeat purchases , and a £100m uplift in company valuation in under a year. This was data as a commercial engine , not an IT project. Overcoming Cultural and Structural Barriers The conversation turned candid on risk aversion - especially in regulated industries. Many leaders default to compliance-driven, process-heavy approaches, making bold transformation nearly impossible. Key reflections: Too many leaders rely on anecdotes over analytics. Data teams are often pigeonholed into reporting functions, rather than driving strategy. Transformation requires assertive data leadership at the top table. “Stop being the data guy. Be the business transformation leader.” Speaking the Language of the Board Data initiatives fail to resonate at the board level when they are framed in tech-speak. But, when translated into three universal levers the narrative shifts from “support function” to strategic enabler . 1️⃣ Growing revenue 2️⃣ Increasing profitability 3️⃣ Reducing risk This was the evening’s unifying thread: If you can’t articulate the straight line from data to revenue, profit, or risk reduction, you’re wasting your time. Embedding a Data Value Mindset Kate Sargent’s work offers a clear roadmap: Establish a value mindset - shared language, communication assets, and strategic alignment. Capture value systematically - using value calculators and prioritisation frameworks. Close the feedback loop - to learn, iterate, and scale what works. Build literacy beyond the data team - empowering the wider organisation to speak and act in terms of data value. This structured approach aims to make value conversations accessible and embedded into daily business operations - not confined to dashboards. Call to Action for Data Leaders The event closed with a clear mandate for those shaping the future of their organisations through data and AI: ✅ Reframe your role from data manager to transformation leader . ✅ Speak in the language of commercial outcomes. ✅ Challenge risk avoidance with predictive-by-design models . ✅ Experiment fast, prove value, and scale boldly. ✅ Build data value thinking into the fabric of the organisation. As one participant noted: “Risk and performance are two sides of the same data.” What’s Next A heartfelt thank you to our speakers Kate Sargent and Eddie Short, our event sponsors - Cloudaeon - , and everyone who contributed their insights. The Winter Party returns on 20 November 2025 - a festive gathering, in London, and an opportunity to continue these conversations. 📩 If you’d like to be part of the next Data Leaders Executive Lounge, register your interest at Eden Smith.
By Christa Swain October 17, 2025
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