LEADERSHIP'S ROLE IN AI ADOPTION AND DIGITAL TRANSFORMATION: BUILDING TRUST AND TRANSPARENCY FOR SUSTAINABLE INNOVATION

In the rapidly evolving landscape of artificial intelligence and digital transformation, leadership emerges as the critical determinant of organizational success. This article provides how leaders facilitate AI integration while maintaining essential trust and transparency. Through analysis of contemporary literature and empirical studies, this article identifies key leadership competencies, trust-building strategies, and implementation frameworks essential for successful AI adoption. The findings reveal that 70% of AI implementation challenges stem from people and process-related issues rather than technical limitations (Organizing4Innovation, 2025), emphasizing the paramount importance of effective leadership in digital transformation initiatives. This study provides actionable insights for leaders navigating the complex intersection of technological advancement and organizational change management.