Blog | Morgan James Consulting | Bespoke Leadership Programs

Is Your SME Leadership Team Ready for AI? 3 Questions For Every Leader

Written by Lily Newman | Dec 08, 2025

​AI is everywhere. If you haven't noticed by now, you must have been asleep for the whole of the 2020s! It's in our inboxes, our CRMs, our marketing dashboards, and occasionally, in that suspiciously well-written LinkedIn post that your "competitor" definitely didn't create without the help of ChatGPT.

But while big corporates are hiring Chief AI Officers and hosting innovation hackathons and huddles, many SME leaders are quietly wondering:

"Are we meant to be doing something about this, or can we just keep pretending that ChatGPT is a fad?"

Here's the truth: AI isn't coming. It's arrived. And whether you're thrilled, terrified, or just tired of the hype, one thing is certain: AI is not just a tech revolution. It's a leadership revolution.

Because the real question isn't, "Can AI help your business?"
It's, "Are you, as a leader, ready to lead in the age of AI?"

Here are three questions every SME leader should be asking themselves right now, ideally before your intern installs another "productivity" tool that locks everyone out of SharePoint.

1. Do I Understand the Human Impact of AI on My People and My Culture?

I hear people talk about AI as if it's purely about systems, automation, and clever algorithms. Having facilitated a Leading Digital Transformation programme for a highly regarded university in the North West, I have seen the confusion, first hand. But at its heart, AI is a people story: and people don't fear technology; they fear being replaced by it.

So before investing in another platform that promises to "revolutionise your workflow," ask:

  • How will this affect how my people feel about their jobs?
  • What emotions might be bubbling under the surface: Excitement, anxiety, suspicion, or all of the above?
  • Have I explained why we're implementing this tool and the impact on my staff, not just what it does?

This is where the Emotional Agenda of Leadership kicks in. Your job isn't just to buy the software; it's to create psychological safety and understanding around it.

Because if your team feels anxious, they'll resist. But if they feel informed, supported and involved, they'll implement and innovate.

A couple of my clients have held a "Let's Talk About AI" coffee session. No jargon. No PowerPoints. Just honest questions like: "What do you think AI could do to make your job easier or harder?"

Spoiler: You'll discover insights and build trust faster than any consultant-led transformation programme (and I say that as a consultant!)

Leadership readiness for AI starts with emotional readiness: yours and your team's.

2. Am I Modelling the Right Behavioural Response to Change?

The uncomfortable truth? Your team takes their emotional cues from you and your leadership team.

If you treat AI as a threat, they'll retreat.
If you treat it as an experiment, they'll explore.

Welcome to the Behavioural Agenda of Leadership.

Leading through change isn't about having all the answers; it's about being seen to be learning and growing.

Remember that time your teenager had to show you how to use a new phone app? (Or maybe that's just me?) The humility, the confusion, the "why is there no button for that" moment? That's your new leadership muscle. When leaders show curiosity ("Let's test this out together") instead of control ("We'll roll this out once I understand it perfectly"), teams relax and engage. They stop waiting for you to give them all the answers and start creating solutions instead.

A fantastic client of ours recently started a weekly "Tech Check-out Day," modelled around Google's FedEx Days when they used to use a Friday to brain-storm new ideas for Google. The challenge was to develop an idea into a short innovation event, where employees were given 24 hours to develop and "deliver" a new idea, just like FedEx promises overnight delivery. In my client's case, a team member would demo a small AI tool they'd found. No pressure. No prizes. Just learning, laughter, and the occasional technological meltdown.

Guess what happened?
Productivity went up. Fear went down. Support for innovation (not just tech) flourished.

Your behaviour will tell your team whether AI is a threat or an opportunity. Choose wisely.

3. Do I Have a Strategic Vision for How AI Supports Our Growth?

To be honest: AI isn't a magic wand that fixes everything.
If your processes are messy, AI will amplify that mess.

So before you start tinkering with new apps and the latest tech solutions, ask yourself:

  • What's the business problem we're trying to solve?
  • How could AI amplify what we already do well?
  • How will we measure whether it's working?

This is the Strategic Agenda of Leadership: connecting purpose, people, and technology and always measuring the outputs.

AI should never replace strategy; it should underpin and support it.

Maybe AI can help you spot sales trends faster?
Maybe it automates boring admin so your managers can focus on developing better staff?
Maybe it frees you up to actually take a lunch break or a walk away from your desk to refresh and reframe your challenges for the day? (Imagine that!)

The key is alignment. Start small. Test. Learn. Scale.
Don't buy tech for the sake of it; buy clarity, confidence and capability.

Without a strategic purpose, AI becomes noise. With one, it drives efficiency and improves leverage.

And Finally: The Real AI Revolution


AI won't replace leaders, but it will expose those who stop leading.

The leaders who'll thrive aren't the most technical.

They're the most human, adaptable, curious and clear about their purpose and intentions.

So, before you rush to integrate AI into your business, ask: "Am I integrating it into my leadership?"

Because technology doesn't transform businesses. Leaders do.

And if you'd like to explore how ready your leadership team really is (emotionally, behaviourally, and strategically), let's have a conversation to see how we can ensure that you and your business are truly AI ready.

​Image source – Canva