AI Meets Leadership: Skills Leaders Still Need
By Jon Kaupla, President/Executive Director of the Wisconsin School of Business Center for Professional & Executive Development
As artificial intelligence (AI) continues to shape the workplace, the role of leadership is changing. AI is transforming how we work by automating routine tasks, enhancing data analysis, and enabling faster decision-making. It is revolutionizing all business functions/departments like:
- Marketing and customer service through personalized experiences, automated responses, and real-time insights,
- Supply chain management with demand forecasting, inventory management and automation,
- Human resources by streamlining recruitment, automating onboarding, personalizing learning and automating routine HR processes,
- Finance through fraud detection and financial reporting/forecasting and,
- Product development with AI-driven design and prototyping.
However, there are still areas where human leadership remains indispensable. While AI enhances efficiency and performance, it can鈥檛 replace emotional intelligence, judgment, adaptability, or ethical decision-making.
In a recent article from the Harvard Business Review, the author discusses how knowledge work鈥攖raditionally focused on managing information鈥攊s giving way to wisdom work, which requires deep judgment, ethical considerations, and human-centered decision-making. Leaders are no longer just responsible for overseeing tasks but must guide their teams with insight and emotional awareness, areas where AI falls short.
Emotional intelligence (EQ) stands out as a critical leadership skill in the AI age. While AI systems can analyze data and trends, they can鈥檛 understand or respond to human emotions. Leaders who excel in EQ can connect with their teams on a deeper level, understanding what motivates them, guiding them through change, and providing the support necessary to navigate the uncertainties that come with increasing AI integration. This human connection fosters trust and creates a resilient, adaptive work environment.
Good judgment is another quality AI lacks. AI can provide data-driven insights and predictions, but it takes a human leader to apply that information in the context of broader organizational goals, ethical considerations, and long-term strategies. Decisions often require a nuanced understanding of factors that AI cannot comprehend, such as team dynamics, cultural shifts, and societal impacts. Leaders must use their judgment to weigh risks, navigate uncertainties, and make informed decisions that reflect the values of their organization.
Adaptability is crucial for leaders navigating an AI-driven workplace. Technology is advancing at a rapid pace, and leaders must be open to continuous learning and growth. Embracing a growth mindset allows leaders to stay ahead of technological changes and incorporate AI tools effectively into their leadership practices. The most successful leaders will not be those who resist change but those who are eager to learn how AI can enhance human work, providing new opportunities for collaboration and innovation.
Leaders should also focus on fostering a productive collaboration between humans and AI. Rather than seeing AI as a competitor, the most forward-thinking leaders view it as a partner. AI can handle the repetitive and data-heavy tasks, allowing leaders and their teams to focus on higher-level work鈥攃reativity, strategy, and human-centered problem-solving. This balance enables teams to work more efficiently while maximizing the unique strengths of human leadership.
Ethical leadership is another critical component in this AI era. As AI takes on more responsibility for decision-making processes, leaders must ensure its use aligns with ethical standards and is free from biases. Transparency and fairness are key to maintaining trust with employees, customers, and other stakeholders. Leaders must remain vigilant about how AI is applied, ensuring it serves the best interests of people, not just the bottom line.
In conclusion, as AI becomes more integrated into daily operations, the need for human leadership does not diminish鈥攊t evolves. Leaders who focus on emotional intelligence, judgment, adaptability, and ethical responsibility will continue to thrive. As the Harvard Business Review article suggests, wisdom work is now the defining feature of effective leadership. AI may be a powerful tool, but the uniquely human traits of wisdom, empathy, and ethical judgment remain irreplaceable.