Major fault lines are emerging in how business leaders approach and implement AI, marked by deep contradictions between strategies and a growing disconnect between vision and operational reality.

That’s according to the latest research from the Adaptavist Group, which found that more business leaders are now ‘AI sceptics’, with 42% believing that their own company’s AI claims are over-inflated, versus 36% who remain confident that their organisation is realistic about AI’s promise.

The study, Digital Etiquette: Unlocking the AI Gates, reveals that 65% of leaders who view AI as overhyped believe their company’s stance risks customer harm, either financial, psychological, or physical, compared to just 9% of those who see their organisation’s claims as more realistic.

The report found that in firms led by AI sceptics, pressure, not results, is driving adoption. The vast majority (84%) of sceptics admitted they encourage their team to use the technology because they feel they should, rather than because they believe it delivers specific value.

AI sceptics reported feeling compelled to deliver results quickly to meet lofty expectations, often working within a culture of fear, blame, and stringent restrictions. 

For example, at organisations marred by AI scepticism, 67% of leaders worry that its adoption threatens jobs, with 80% saying they believe their company uses AI to cut headcounts, compared to just 39% among firms with more realistic expectations for AI.

These fears are also bleeding into day-to-day work, with 42% of AI sceptics saying they hide their AI usage at work out of fear of repercussions, versus only 6% of realists. 

Nearly half (48%) of those in over-inflating organisations worry about being incorrectly accused of using AI, while 45% think that their colleagues perceive AI users as less competent, a stark contrast from the 15% and 5% of realists who believe the same.

Despite those fears, however, most organisations are still investing heavily in AI. The study found that, over the last year, 34% of even AI sceptic leaders spent between £1 million and £10 million on implementing the technology,

Moreover, the report discovered that 8% of AI sceptics invested over £10 million, more than their ‘realist’ peers, 31% of whom spent between £1 million and £10 million, with 6% spending more.

According to the Adaptavist Group, the narrow gap in spending suggests that differing attitudes toward AI aren’t linked to investment levels, but rather to deeper organisational dynamics and strategic tensions.

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While in some firms AI is being foisted upon teams from the top down with stifling restrictions, those that take a more measured approach to AI adoption report more tangible gains.

The study found that more than half (58%) say AI has improved work quality, while 61% report time savings, and 48% note increased output. Ethical concerns are evidence of further stark divisions, with 74% of sceptics worrying about plagiarism and misuse, compared to just 37% of realists.

“Organisations that treat AI tools simply as replacements for existing jobs or tasks, without considering their system of work as a whole, are set up to fail,” said Jon Mort, CTO at the Adaptavist Group.

“Pushed to ‘just adopt’ without considering training and time to test, refine, and build the right support structures, leaders are far more likely to find themselves in a culture of fear around AI and diminished confidence in the value of human input. 

“To unlock AI’s true value, organisations must be quick to experiment, but take time to thoughtfully roll out fully, by investing in training, and creating an environment where both people and technology can thrive.”