Navigating AI Disruption And The New Competitive Edge In Finance

The financial markets have been all over the board recently. The Cboe Volatility Index (the famed “fear gauge”) jumped 28% in the first quarter of 2025, and the S&P 500 logged its worst quarterly performance since early 2022. At the same time, generative AI hype has reached a fever pitch where banks and insurers are racing to deploy chatbots, AI traders, and AI-driven analytics in hopes of staying ahead. A recent survey from EY found 90% of European financial services firms have integrated AI into their operations. The message to executives is clear: adapt or fall behind. But adapting is easier said than done.

Jay Kiew, a change navigation strategist, believes there’s a hidden factor separating the firms that thrive from those that flounder. It’s not superior technology, a bold strategy, or even exceptional talent. It’s something Kiew calls “change fluency,” and evidence suggests it’s now the biggest predictor of which companies will still be standing five years from now. In fact, organizations with high change fluency have delivered shareholder returns 143% higher than their less adaptable peers. As AI disruption only accelerates, this ability to skillfully navigate change may be the most vital business capability of all.

What exactly Is Change Fluency?

Essentially, change fluency is all about an organization’s ability to spot shifts early, absorb disruptions without missing a beat, and turn uncertainty into opportunity. It’s not about following a rigid playbook but more like building muscle for adaptability. Just like learning a new language, the goal isn’t to memorize every single rule and word, but to develop a natural feel for how to respond in the moment. The most change-fluent financial organizations don’t just react—they process all the signals around them including n markets, technology, or customer behavior and use them to drive innovation that lasts.

Jay Kiew compares it to speaking a language fluently. True fluency means you’re able to express ideas naturally across diverse contexts, rather than haltingly translating every thought word-for-word. In the same way, a change-fluent organization doesn’t need to scramble for a plan every time a new AI tool or fintech challenger appears. It already has the cultural vocabulary to respond smoothly and confidently. This means less hesitation and inaction when facing uncertainty and more proactive moves that turn turmoil into opportunity.

The Pitfalls of Traditional Change Management in Finance

In the financial services sector, the pressure to transform is real—but so are the challenges. Too many organizations are still relying on outdated playbooks that simply don’t cut it in today’s fast-moving, tech-driven, AI-enabled world. Two common traps that organizations far too often fall into are:

• Initiative…