How “change fluency” separates winners from losers in finance

In a financial landscape marked by extreme volatility and AI-driven disruption, a new strategic capability called “change fluency” is emerging as the critical differentiator between organizations that thrive and those that fail. As financial institutions rush to implement AI technologies amid market turbulence, this organizational adaptation skill—more than technology, strategy, or talent—appears to be the strongest predictor of which companies will survive the next five years of transformation.

The big picture: Financial markets are experiencing significant instability while financial services firms simultaneously race to integrate AI, creating a perfect storm that demands exceptional organizational adaptability.

• The Cboe Volatility Index jumped 28% in Q1 2025, while the S&P 500 logged its worst quarterly performance since early 2022.
• Meanwhile, 90% of European financial services firms have already integrated AI into their operations, according to a recent EY survey.

Key details: Change fluency, as defined by change navigation strategist Jay Kiew, encompasses an organization’s ability to identify shifts early, absorb disruptions smoothly, and transform uncertainty into opportunity.

• This capability differs from traditional change management by developing a natural “adaptability muscle” within the organization.
• Evidence suggests change fluency has become the strongest predictor of which companies will remain viable in the next five years.

Why this matters: Traditional change management approaches are proving inadequate in today’s environment, often creating initiative overload and resistance through top-down implementation strategies.

Behind the numbers: The rush to deploy AI technologies in banking and insurance—including chatbots, AI traders, and analytics—reflects a growing recognition that adaptation is no longer optional but existential.

The roadmap: Building change fluency requires three fundamental mindset shifts within financial organizations:

• Embracing wonder over certainty
• Practicing strategic sacrifice
• Co-creating change instead of forcing it

Actionable insights: Financial services leaders can develop change fluency by implementing specific strategies:

• Creating dedicated space for change initiatives
• Leading through experimentation
• Collaborating with front-line employees
• Cultivating a culture where failure is acceptable

The bottom line: Organizations that develop change fluency will not only navigate current market volatility and AI disruption but also position themselves to discover new growth opportunities in a continuously evolving landscape.