Internal misalignment slows AI-era execution
New EQ data finds internal friction and misdirected development, not AI skills, are slowing execution.
As organisations accelerate AI adoption, internal misalignment and leadership blind spots are proving more restrictive than the technology itself, according to TalentSmartEQ’s 2026 State of EQ Report.
When asked what most obstructs execution, 44% of respondents cited internal alignment. Financial challenges followed at 38%. Only 12% identified AI and technology adoption as the primary barrier.
The survey, based on 695 HR, L&D and business professionals, suggests that coordination breakdowns, competing priorities and unclear decision rights are absorbing more energy than technical implementation.
Economic uncertainty now tops the list of expected business impacts over the next one to two years, cited by 65% of respondents. More than half, 54%, report experiencing frequent or constant change, up from 45% the previous year. Yet only 41% say their organisation is well prepared to handle disruption.
Under these conditions, effort does not disappear, it fragments. Teams move quickly but not consistently in the same direction. The report links this to sustained pressure on leaders, with 45% of respondents naming stress as their biggest challenge, up from 34% in 2025.
Multi-rater data from more than 23,000 leaders adds another layer. Fewer than 5% of leaders share the same top three development priorities as their raters. 45% per cent show no overlap between what they want to improve and what their teams say limits their effectiveness.
Leaders tend to focus on inward goals such as initiating difficult conversations or staying engaged in tension. Their teams more often highlight outward behaviours, particularly how leaders regulate their reactions and respond in difficult moments. The behaviours most visible to teams, and most consequential for trust and coordination, are not always the ones leaders prioritise.
The report describes adaptability, critical thinking, communication and emotional intelligence as interdependent capabilities shaping how organisations function under strain. Its central argument is that technical investment alone does not secure performance. Execution depends on whether leaders can maintain clarity, regulate responses and align priorities when conditions are volatile.
For L&D teams, the findings point less to a gap in AI capability and more to a question of behavioural precision. If development focus does not match lived experience, organisations risk investing heavily in tools and programmes while friction inside teams continues to slow progress.
Report
Download: TalentSmartEQ’s 2026 State of EQ Report
Learning investment emerges as AI’s key differentiator
Nearly 40% of AI time savings are lost to rework, with organisations that invest in skills and learning far more likely to realise real value.
AI value depends on learning speed
AI tools are advancing quickly, but learning and role design now determine whether organisations realise value or simply accelerate activity.
AI's learning gap gets multi trillion dollar price tag
Economic modelling finds that AI alone will not deliver expected productivity gains, with learning and skills development identified as the key constraint on value, potentially worth up to $6.6 trillion to the US economy, over a fifth of GDP, by 2034.
Workload is the blind spot in AI-driven work
New employee experience research shows 36% of employees do not feel able to cope with their workload, pointing to sustained pressure at work.
Learning becomes the constraint on AI productivity
AI tools scale faster than learning systems. Skills and role design lag behind adoption. Time saved lost to checking and rework. Learning now limits AI value.