Artificial Intelligence (AI) is reshaping all industries across the globe, and its influence is only expected to intensify over the coming years. Of course, throughout history, each generation has introduced new technological innovations that have transformed how we live, work, and lead. However, leadership in the AI era requires a unique approach, as leaders must navigate the balance between human insight and technological advancement like never before.
So why is AI receiving so much more attention?
AI stands out due to its broad applications across all industries and functions. As AI evolves, so must the role of a leader and the competencies needed to lead effectively. To thrive in the AI era, today’s leaders must embrace key shifts that balance the human and technological elements of leadership.
David De Creamer, author of The AI Savvy Leader: Nine Ways to Take Back Control and Make AI Work, emphasizes that AI has the potential to be “leadership’s ultimate change management project.” For the first time, leaders are tasked with:
- Balancing technological advancements with human interaction across all areas of the business, not just within IT.
- Calming concerns among employees about AI’s potential to replace jobs.
- Leading and implementing technologies that they may not fully understand.
Having developed leadership programs and coached leaders for decades, I’ve seen firsthand how critical it is for leaders to adapt to new technological landscapes. Extensive research highlights three critical shifts that leaders need to make in order to navigate the complexities of the AI era and ensure they have the AI leadership skills for the future.
Shift #1: Leverage Your Unique Human Skills
After twenty years of leadership development experience, it feels a little bizarre for me to recommend that leaders need to be “more human” or to “leverage their human traits,” but that is exactly what AI is bringing to the forefront. And it appears that this is something leaders need to consider, because according to Gartner research, only 29% of employees believe their leader exhibits human leadership!
“After twenty years of leadership development experience, it feels a little bizarre for me to recommend that leaders need to be ‘more human’ or to ‘leverage their human traits,’ but that is exactly what AI is bringing to the forefront.”
As AI continues to advance, its ability to analyze, synthesize, and process expansive amounts of data is undeniably powerful. However, AI’s strength lies in data, not in human emotion. The importance of human skills, sometimes referred to now as “power skills” which some of you may remember being called “soft skills,” will be essential in developing leaders. Skills such as empathy, creativity, and emotional intelligence will be what makes leaders successful in the future.
Research from the Top Employers Institute’s World of Work Trends 2024 reveals that “68% of employees believe non-work-related training that supports their overall well-being will be vital in 2024. From mental health and mindfulness to career development and financial wellness, employees are increasingly seeking a more holistic approach to personal and professional growth”[1]. Leaders must be prepared to support their teams in these areas, offering not only technical skills but also the human touch that fosters a positive and productive workplace.
One way to frame leadership development and AI is from the HBR article, “How AI Can Make Us Better Leaders” by Rasmus Hougaard and Jacqueline Carter. “Through strategic application of AI systems and tools, leaders can cultivate their best human qualities and human areas of leadership”[2].
Shift #2: Recognize When to Leverage Technology vs. Humans
AI isn’t a one-size-fits-all solution. It’s about knowing when to deploy technology and when to lean on human judgment or intuition. For leaders to know how to do this, they need to develop fundamental AI skills. This requires leaders to better understand their current organization’s key priorities, processes, and systems to determine where AI can provide a positive impact. Some of those areas include data analysis, predictive modeling, and automating repetitive tasks like scheduling.
While AI can enhance efficiency and inform decision-making, it cannot replace the understanding, critical thinking, and creativity that humans bring to complex problems. Leaders must be able to distinguish between tasks best suited for AI and those that require human empathy, creativity, and emotional intelligence or a combination of the two. Research suggests that leaders need to consider AI as a way to enhance and not replace the human qualities that make leadership impactful.
To distinguish these tasks, leaders should ask themselves two questions according to the authors of the Harvard Business Review article, “The Best Leaders Can’t Be Replaced by AI”:
- Does the situation rely on knowledge, rational thinking, or analysis?
- Does the situation require social, emotional, or interpersonal qualities?
The article provides a decision-making matrix to assist leaders in determining whether to leverage AI for specific tasks such as research and data analysis or to leverage human qualities such as strategizing and decision-making based on the two questions above. The focus for the future is on developing leaders who are self-aware, authentic, and know how to connect with their teams, peers, and customers.
Another critically important human consideration is the ethical use of AI. “Over 75% of executives now consider AI ethics as important, a significant jump from previous years”[3]. The topics of accountability and compliance are coming to the forefront as companies integrate various forms of AI. From the Harvard Business School article, “5 Ethical Considerations of AI in Business,” leaders are now having to both manage and regulate the use of AI across all aspects of the business. Some of the considerations include Algorithmic Bias (i.e., Workplace bias, Discriminatory Hiring, etc.), Cybersecurity, and Privacy (i.e., Collecting, storing, and using employee data.) This distinction is critical for those navigating leadership in the AI era, where understanding the synergy between human judgment and AI-powered solutions defines success.
“For those navigating leadership in the AI era, understanding the synergy between human judgment and AI-powered solutions defines success.”
Shift #3: Embrace Continuous Learning vs. a Specific Set of Leadership Skills
In the rapidly evolving AI era, the traditional model of leadership development where leaders relied on a fixed set of skills, will no longer suffice. Leaders must adopt a mindset of continuous learning, adapting their skills and approaches to meet the demands of ever-changing technology and organizational needs. AI is influencing all levels of leadership, from Leading Self, Leading Teams, and Leading the Organization.
To thrive, leaders need to embrace a growth vs a fixed mindset, viewing change and new technologies as opportunities rather than challenges. “A study by the Harvard Business Review found that companies with growth-minded leaders had more innovative and collaborative cultures. These companies were also more likely to outperform their peers in terms of revenue growth and profitability”[4].
Developing a growth mindset involves not only learning about AI but also cultivating adaptability within themselves and their teams. Here are a few actionable strategies to achieve this:
- Develop Foundational AI Knowledge: Build a basic understanding of AI concepts like machine learning and predictive analytics to more effectively engage with your company’s data analytics teams.
- Commit to Building a Habit of Learning: Identify a few sources that allow you to stay informed through online courses, podcasts, and industry forums, etc. Then, dedicate a few minutes every day or every week to boost your knowledge.
- Model a Growth vs Fixed Mindset for your Team: Cultivate a culture of learning and adaptability by encouraging experimentation and innovation with time to discuss lessons learned, share knowledge across functions or departments to build empathy and connection with others, and learn to reframe business challenges to discover solutions from different perspectives.
Partnering for Better Business Outcomes
Leadership in the AI era isn’t just about implementing new technologies; it’s about adapting behaviors to an ever-changing work world that requires leaders to find new ways to partner with humans and technology. The three shifts outlined above are a few stepping stones towards positioning yourself and your team for success.
By embracing these shifts, a leader not only prepares their organization for AI leadership skills for the future, but they cultivate a culture where technology and people partner together to achieve extraordinary business results.
Learn more about how CARA can help you navigate leadership in the AI era, get in touch!
Who is CARA?
CARA works with leaders who understand that a high performing workforce is the key to outstanding business results. Our solutions empower employees to quickly adapt to organizational changes and develop the skills and abilities to sustain high performance in their roles. Each CARA solution is customized to the unique client need, ensuring maximum results in the shortest amount of time.
Our consultants are experts, leveraging our 6D Solution Methodology to identify and fix performance issues in the workforce through the combined power of OCM, learning, and communication best practices. For 20+ years, the world’s most recognizable companies have trusted CARA to help their business perform, by helping their people perform.
[1]: Top Employers Institute’s World of Work Trends 2024. [2]: Hougaard, R., & Carter, J. (2024). How AI Can Make Us Better Leaders. Harvard Business Review. [3]: Forbes, Jan 2024. 6 Critical and Urgent Ethics Issues with AI. [4]: TrainingIndustry.com, March 6, 2024. How Leaders Can Develop a Growth Mindset and Improve Their Resilience.
