New Investigating The Future CEO Report Reveals Key Challenges

A new report from Livingston James in association with EY - Investigating the Future CEO, exposes an important leadership and technology adoption challenge for organisations across Scotland, with significant implications for family-owned enterprises preparing for generational transition.

Now in its second year, Investigating the Future CEO blends robust survey data and interviews with more than 200 CEOs, non-executive directors and senior functional leaders across finance, HR, technology and operations. The study spans organisations of all sizes across the private, public and third sectors in Scotland, with the majority of respondents (71%) drawn from the business community.

AI Strategy Lags Behind Ambition - A Risk For Future Leadership

While 71% of organisations report that AI is regularly discussed at board level, only 36% have a formal AI strategy in place, a finding echoed in recent coverage highlighting that the public sector is outpacing private firms in establishing AI strategy frameworks.

This disconnect between AI ambition and structured strategy carries real consequences for the business landscape, especially for family businesses where strategic continuity and competitive advantage are central to long-term success.

A number of additional trends from the Future CEO report underline this readiness gap:

• Only 36% of organisations currently have an AI strategy in place, despite widespread board-level discussion

• Public bodies are more likely to have implemented AI strategies than private firms, highlighting that many commercial enterprises, including family businesses, are trailing in readiness

Succession Planning Remains A Priority

Alongside AI readiness, the report highlights that internal succession planning continues to be a major challenge. Although 75% of respondents now believe their CEO successor sits within the senior leadership team, a significant increase from 47% last year, one in four executives still feels that no one in their team is ready to step into the chief executive role.

For family-owned businesses where leadership transition is often intertwined with family dynamics, cultural legacy and long-term vision, the intersection of succession readiness and digital capability is especially critical. Leaders must not only identify future CEOs internally but also ensure they have the skills to lead organisations through rapid technological change.

Implications For Family Enterprises

Family businesses are the backbone of the UK economy, and many are approaching key generational leadership transitions.

The Future CEO findings suggest these organisations will need to:

• Embed AI strategy and capability into broader leadership development plans

• Prioritise board-level conversations that connect digital strategy with succession frameworks

• Invest in structured leadership pathways that balance family continuity with evolving commercial demands

As technological shifts reshape markets and organisational models, Scottish family enterprises that proactively align leadership succession with AI readiness will be better positioned to sustain growth and intergenerational success.

You can read the full Future CEO Report here:

Future CEO Report - 2025-2026 (1).pdf

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