AI is driving wave of operating model transformations

Organisations across Europe are redesigning their operations to unlock the perceived potential of their AI investments. According to a BearingPoint study, 70% of executives said that AI had triggered an operating model redesign; but despite this enthusiasm, just 4% of organisations said they had fully aligned their operating models to support their strategic goals.

A growing body of evidence shows that investing in AI technology alone does not deliver substantial improvements in productivity – it must be combined with strong talent foundations. One recent study from EY showed to that end that organisations with weak talent strategies – such as ineffective training, weak company culture and misaligned rewards – see AI productivity gains lag by over 40%.

Employers could improve their chances if they adopted a less combative stance, then. Organisations that successfully combine a supportive workplace culture, learning opportunities and robust rewards system into an integrated talent strategy will gain more value – however, the same study suggested just 37% of UK employers are currently on course to realise this.

Now, a new study from BearingPoint has also shown that Europe’s corporate leaders are dragging their feet, when it comes to overhauling their operations to make the most of their substantial AI investments. Based on a survey of nearly 400 C-level leaders across Europe and complementary qualitative research, the analysts suggest that AI and continuous change are “redefining organisational performance”, and that “traditional operating models can no longer keep pace”.

"Organisations can no longer rely on static models built for predictable environments," said Rémy Sergent, partner at BearingPoint. "Our research shows that future-ready companies are rethinking how work gets done. They are redesigning their operating models so teams can move faster, collaborate more effectively, and use AI in ways that enhance both decision-making and customer value."

To that end, almost seven-in-ten leaders said that new technology and AI were key external drivers now influencing their business strategy – head and shoulders above evolving customer expectations, or regulatory changes, at 49% and 32% respectively. To translate these strategic goals into effective action, organisations must align their transformation efforts with a clearly defined target picture. The target picture serves as the north star for how structure, processes, technology, and people interact to achieve business goals.

However, despite this perceived need for widespread transformation activity, the study reveals a significant readiness gap. While 70% of respondents assess themselves as well-prepared for future demands, only 4% say their operating model is fully aligned to support their strategic goals. Key barriers include fragmented governance, inconsistent accountability, outdated processes, and limited integration between business and IT.

Once again, however, education and up-skilling of staff seem to be the biggest problem. Among a 44% chunk of C-level leaders who identify talent and skill gaps as a major obstacle, 57% still do not prioritise talent initiatives to close them. This exposes a disconnect between recognized challenges and resource allocation, increasing the likelihood of long-term capability deficits.

"Technology is only one part of the transformation story," added Tobias Liebscher, partner at BearingPoint. "Organizations that succeed take a holistic approach. They align their structure, processes, people, and culture so AI and data can deliver measurable results. The future will be shaped by companies that design their operating models for adaptability, not just efficiency."