Baker Tilly report warns of AI-driven leadership crisis in mid-market companies

A report by Baker Tilly titled ‘The Mid-Market Labyrinth’ warns that medium-sized companies face a potential leadership crisis over the next decade. While 70% of leaders believe artificial intelligence will significantly drive growth in the next five years, there is growing concern that integrating AI could erode the talent pipeline by displacing junior roles necessary for developing future executives.

Key findings indicate that 60% of leaders prioritize technology and digital transformation in their investments, a figure that rises to 66% among high-growth organizations. However, institutional volatility remains a hurdle, with 35% of companies reporting they have postponed or canceled significant investments due to rapid changes in public policy.

Talent acquisition and retention is identified as the primary barrier to growth. Approximately 60% of executives expect competition for high-level talent to be the greatest constraint over the next decade, particularly in specialized fields such as AI, electrical grid engineering, supply chain management, and regulatory compliance.