As the world becomes more disorienting and AI reshapes work, leaders must think more provocatively and playfully to succeed, according to a new report from the University of Sydney Business School.

The 2027 Skills Horizon is designed to help leaders and organisations stay ready in an era of unprecedented disruption, uncertainty and complexity.

The report draws on insights from conversations and focus groups with more than 200 global leaders and executives—including Prime Minister Anthony Albanese and former Prime Minister Julia Gillard—with diverse backgrounds spanning business, government, academia, defence, culture and the arts.

It explores the six shifts driving global change and the 37 skills—grouped into five areas of convergence—essential for future success. New in this edition are the 17 provocations: the big issues leaders need to tackle in a changing world, ranging from the use of increasingly expensive AI tokens to balancing the demands of five generations in the workplace.

“Change is relentless and AI is everywhere. But learning new skills, unlearning what
no longer serves you, and finding ways to make work more fun will enable you to confidently face and work through the challenges of the future,” said Associate Professor Sandra Peter, Co-Director of Sydney Executive Plus.

“AI upskilling may be expected, but we have also seen some surprising moves in our research,” said Professor Kai Riemer, Co-Director of Sydney Executive Plus.

“Play, for instance, seems counterintuitive because it is the opposite of work.

“But when you operate under uncertainty, you must feel free to explore and try new things in an environment of fun and good humour. Play allows you to work through uncertainty in a way that is refreshing, as opposed to daunting.”

The report is also informed by a thematic media analysis of one million articles from key business news outlets and magazines, mapping how the public conversation has changed over the past five years.

“It’s the worst of times; it’s the best of times. The future remains messy, the pace and intensity of change have increased, and complexity has become standard. But there are opportunities in the mess for leaders: you have the chance to build trust, redesign work for the better, and help your people find stability,” said Associate Professor Peter.

“It’s also the AI-est of times. The technology moves fast and touches everything, from work to sovereignty to culture. In both our interviews with leaders and our thematic analysis, it’s clear that AI has everyone’s attention and has colonised the conversation,” said Professor Riemer. 

The inaugural Skills Horizon in 2024 introduced the idea of “the decade of disorientation”, characterised by five shifts: values, technology, accountability, trust, and energy.

The 2027 Skills Horizon reiterates these shifts, with a sixth one emerging: the information shift. This explores how AI is degrading and complicating the information ecosystem, leading to more noise and threatening leaders’ ability to make decisions.

The six shifts give rise to provocations which appear throughout the report, linked to core themes and ideas.

“Provocations are the big things leaders need to figure out. We’ve highlighted some in the report—around the leadership crisis, declining trust, thinking strategically about tech—but leaders will also face them in their day-to-day. Engaging with provocations, either alone or as a team, will help clarify complex matters. And probably spark some spirited debate,” said Associate Professor Peter.

The 37 skills identified in the report are grouped into five ‘blobs’ of convergence: Speaking the language of tech, Solving problems of scale, Working across difference, Thinking through complexity, and a new, fifth blob in Leading the AI transition.

“All five blobs cover AI to an extent, but two in particular are dedicated to managing its impacts: Speaking the language of tech focuses on what is practically doable with AI, while Leading the AI transition will help leaders clean up the mess AI causes at work,” Professor Riemer said.

The report closes with some practical tips for ‘provocative leadership’ – the type of leadership that will engage and inspire teams through disorientation, characterised by five attributes including telling it like it is and embracing lifelong learning.

About the Skills Horizon 
The Skills Horizon is the flagship annual research report from Sydney Executive Plus at The University of Sydney. Together with research, it produces actionable insights for leaders globally about how the world is changing and what they need to know next. 

Report authors 
Dr Sandra Peter, Director of Sydney Executive Plus and Associate Professor 
Dr Kai Riemer, Director of Sydney Executive Plus and Professor of Information Technology and Organisation 
Dr Pat Norman, Manager of Research & Development at Sydney Executive Plus