From the August 2026 issue AI & Innovation

AI Won’t Fix a Broken Company. It Will Expose It Faster

There is a growing assumption inside executive teams that adopting AI is a strategy. It isn’t.

What I took from my conversation with Dr. Victoria Mensch is that a lot of organizations are struggling with clarity, identity, and leadership discipline. AI simply accelerates whatever already exists. If the foundation is strong, it compounds results. If it’s not, it compounds confusion.

It reframes the real risk. Companies aren’t falling behind because they lack tools. They’re falling behind because they’re applying powerful tools to flawed thinking.

Why curiosity, not certainty, separates leaders who adapt

The leaders who navigate disruption well are not the ones with the most answers. They are the ones willing to operate without them.

Dr. Mensch pointed to curiosity as the defining trait. That sounds soft until you see what it actually requires. Curiosity means admitting your current model may no longer apply. It means taking in information that contradicts your experience. It means moving forward without full data.

Most executives have been rewarded for certainty their entire careers. That becomes a liability when the environment shifts faster than their experience can keep up. The ones who struggle tend to double down on what worked before. The ones who adapt are willing to question it early, before the market forces them to.

The most common AI mistake is treating it like a tool

There is a quiet but costly misunderstanding happening in boardrooms right now. Executives are asking how to use AI inside their current processes. The better question is whether those processes should exist in their current form at all.

Dr. Mensch made this point directly. If you apply AI to a broken workflow, you don’t fix it. You scale the inefficiency. Faster output doesn’t equal better outcomes. It just produces more of whatever system is already in place.

That requires a different starting point. Instead of asking how to automate what exists, leaders need to ask how they would design the operation if they were building it today. That question is uncomfortable because it exposes how much of the business is built on legacy decisions. But it’s the only way AI becomes transformative instead of cosmetic.

The identity trap is what actually slows innovation

Companies protect what made them successful. Leaders protect the expertise that got them to their current position. That creates a quiet tension when change is required. If the business evolves, what happens to the identity tied to the old model? Dr. Mensch described this as an identity crisis. It shows up in two ways.

First, organizations try to innovate without disrupting their core. They want new results without changing the system that produced the old ones. That rarely works.

Second, experienced leaders become overconfident. They filter new information through old frameworks and dismiss what doesn’t fit. That’s not stubbornness. It’s pattern recognition misapplied to a changing environment.

The companies that move forward faster are the ones willing to detach their identity from their current model. They treat success as temporary, not permanent.

Clarity is crucial

Dr. Mensch specifically called out clarity as something that creates a measurable shift in performance. She didn’t mention inspiration or urgency. She mentioned clarity.

That shows up in three ways:

Most companies underestimate how much confusion exists below the executive level. Decisions are made at the top, translated poorly in the middle, and executed inconsistently at the front line. Then leadership wonders why adoption is slow.

Clarity removes that friction. It also creates alignment. When people understand where the company is going and how their role connects to it, execution improves without additional pressure.

There is another piece many leaders miss. Clarity requires repetition. One announcement doesn’t change behavior. Ongoing communication does.

AI can increase burnout if leadership doesn’t change how it measures value

There is a dangerous pattern emerging in companies adopting AI. Tasks become faster. Expectations stay the same. Then they quietly increase.

The logic is simple. If work takes less time, more should be produced. That sounds efficient. It also ignores how value is created.

Dr. Mensch pointed out that when companies continue to measure output in hours or volume, AI becomes a pressure multiplier. People are expected to keep pace with machines, which leads to exhaustion rather than improvement.

Leaders need to shift from measuring activity to measuring outcomes. That requires defining what good actually looks like, not just how much work gets done.

It also creates space for something most companies say they want but rarely structure for: better thinking. AI handles repetition. People handle judgment. If leadership doesn’t make that distinction operational, burnout becomes inevitable.

The only sustainable advantage is how well you think under uncertainty

Executives are dealing with more information than at any point in history. That doesn’t make decisions easier. It makes them slower and more fragile.

The instinct is to wait for more data. The problem is that complete information never arrives.

Dr. Mensch’s approach is more practical. Accept that uncertainty is constant. Build decision frameworks that function inside it.

That includes:

This doesn’t eliminate risk. It makes it visible. The leaders who move faster are not guessing. They are operating with structured awareness of what they don’t know.

Curiosity cannot exist in a culture that punishes failure

Every company says it wants innovation. Fewer are willing to tolerate the conditions required for it.

Curiosity requires experimentation. Experimentation includes failure. If failure carries a penalty, curiosity disappears.

Dr. Mensch made an important distinction. Failure isn’t the problem. Lack of learning is. Organizations that improve treat failed efforts as data. They analyze what happened, extract what’s useful, and move forward with better assumptions.

Organizations that struggle treat failure as a mistake to avoid. That leads to risk aversion, slower decision-making, and eventually irrelevance.

This is not a cultural slogan. It’s a structural choice. If leaders want curiosity, they have to build systems that make it safe to test ideas.

Technology doesn’t fail. Adoption does.

Adoption is a leadership problem. That comes back to clarity again. If people don’t understand why a change is happening or how it benefits them, they resist it. Not because they oppose progress, but because they lack context.

The companies that implement technology successfully spend as much time on communication and alignment as they do on the tool itself.

Leadership starts before the title

One of the more grounded points in this conversation was also the simplest. Leadership is not defined by position. It’s defined by behavior.

That matters because many organizations wait for direction instead of creating it. Individuals defer responsibility because they don’t have authority. Teams stall because they expect clarity to come from above. That creates a bottleneck.

Dr. Mensch’s view is more direct. Leadership starts with how you manage your own decisions, energy, and response to uncertainty. That applies at every level of the organization.

Companies that move faster don’t rely on a few decisive leaders. They develop more people who can think, decide, and act with ownership. That’s what scales.

The companies that benefit from AI will be the ones that rethink themselves first

There is no shortage of AI tools. There is a shortage of companies willing to rethink how they operate. That is the dividing line.

The organizations that treat AI as an upgrade will see incremental gains. The ones that use it as a forcing function to challenge their assumptions will see disproportionate results.

That requires stepping back before moving forward. It requires questioning systems that feel familiar. It requires leaders who are willing to trade certainty for relevance.

Most companies will try to move faster. The better ones will start by thinking differently.