By Mike Pearson
Let’s get one thing clear: this isn’t a “man versus machine” conversation. We’re not in a sci-fi showdown. What we’re facing in today’s world of work is something far more nuanced and far more human.
AI is here. It’s already in our systems, our workflows, and probably our coffee machines too if they’re smart enough. The question isn’t whether we use it. It’s whether we lead well with it. And that means understanding how human skills and tech insight must work in tandem, not at odds. This blog isn’t about fear. It’s about focus. It’s about what people leaders need to actually do in this next era, not just react to AI but rethink leadership altogether.
New Tech Needs New Thinking
According to McKinsey’s 2024 Global Survey on AI, 71% of organisations report regularly using generative AI in at least one business function, up from 65% in early 2024. That’s a significant uptick, reflecting how rapidly AI is embedding itself into daily operations. But here’s the catch: while AI adoption is accelerating, many organisations are still grappling with the human side of this transformation. McKinsey’s research highlights that the biggest barrier to scaling AI isn’t the technology itself – it’s leadership readiness. Only 1% of companies consider themselves at AI maturity, where AI is fully integrated into workflows and driving substantial business outcomes.
Let that land for a second…
We’re rolling out AI faster than we’re preparing our people to lead, adapt, and work alongside it. That’s like giving someone a jet engine but no pilot training. Upskilling alone won’t cut it. What we really need is a shift towards rehumanising leadership in the age of AI. The truth is, AI doesn’t replace what makes great leaders great. When used with intention, it brings those human qualities into sharper focus.
Here’s Where the Science Backs the Soul
From a business psychology lens, we know that what makes leadership effective isn’t just technical knowledge, it’s emotional intelligence (EQ), cognitive flexibility, and the ability to create psychological safety in ambiguity. Daniel Goleman’s framework for EQ (self-awareness, self-regulation, motivation, empathy, and social skills) hasn’t suddenly become obsolete. In fact, it’s more relevant now. Why? Because AI doesn’t do emotions. It can mimic, but it doesn’t feel. It can process language, but it doesn’t mean it.
Gartner’s research into ‘Human-Centric Leadership’ shows just how powerful these human qualities really are. Teams led by leaders who are seen as authentic, empathetic, and adaptive report a 37-percentage-point increase in employee engagement compared to those who don’t experience those traits in their leaders. And that matters because highly engaged employees can improve team performance by up to 27%. That’s not fluff, that’s impact!
If you’re a leader reading this, just ask yourself: Are your leadership frameworks keeping up with what the human brain actually needs in times of rapid change?
Human Judgement Still Leads
AI is phenomenal at data, spotting trends, and crunching numbers faster than we can blink. But decision-making at leadership level? That’s still a deeply human process. AI can tell you what’s happening, but it can’t tell you why it matters, or how it’ll land emotionally. Or what your people aren’t telling you because they’re afraid to speak up. Leadership is about trust, and trust isn’t built in dashboards or data points. It’s built in conversation, context, and showing up consistently when it counts. AI can’t replace that. And it shouldn’t.
The False Comfort of Certainty
Here’s where psychology gets even more useful. As humans, we’re wired to crave certainty. Ambiguity makes our brains feel unsafe – it triggers cortisol, shrinks our access to creativity, and narrows our thinking. But AI introduces ambiguity by nature. It’s changing our roles, our pace, our expectations – often without clear roadmaps. This is why human leadership is vital. We need to create stability in motion. That means being transparent about what’s changing, honest about what isn’t known, and present enough to guide people through complexity – without pretending it’s easy.
This is what Deloitte calls “stagility”, the ability to balance stability and agility at the same time. And guess what? It’s learnable. Human leadership is a practice, not a personality trait.
AI + Human Skills = Multiplicative Impact
OK, let’s flip the lens. The organisations that are doing this well are not separating AI and people development into different lanes. They’re weaving them together.
In healthcare, we’ve seen how AI tools, like diagnostic systems or admin-reducing tech, can take pressure off stretched clinicians. But what really makes the difference isn’t just the tech. It’s how leaders support their people through the shift. In organisations where team leads are equipped to have coaching-style conversations, the focus isn’t just on how the tech works, it’s on how people feel about it. The fears around job security, the identity shifts, and the subtle tension it can create across teams. Where this human layer is in place, the results are striking: increased efficiency, stronger engagement, better cross-team collaboration, reductions in stress-related absence, and even fewer grievances. It’s a reminder that AI on its own won’t transform an organisation, but human leadership around AI just might.
This is what we mean by whole-system thinking.
So, What Now?
Here’s the practical bit:
1. Prioritise Human-Centric Strategy
Build strategies that start with the question: how will this impact people? Not just from a productivity view, but emotionally and culturally.2. Integrate Human Skills into Leadership Development
Don’t treat empathy, listening, or adaptability as “soft” add-ons. They’re core competencies in an AI-integrated world.3. Use AI to Free Up What Matters
Let AI take the admin. Let humans do the leading. Use the space AI creates to build culture, connection, and capability.4. Model Human Curiosity, Not AI Mastery
Your people don’t expect you to code a neural net. They want to see you curious, open, and willing to learn alongside them.5. Talk About It
As obvious as it sounds, talk more. AI is scary for many, exciting for others, and confusing for most. Transparent, two-way communication is your superpower, so make sure you use it.
It’s Not Either/Or – It’s Together
The best leaders I’ve worked with recently aren’t overwhelmed by AI. They’re energised by what’s possible, but only because they trust their people to be the differentiator.
Let me leave you with this:
‘Technology changes the tools, but people change the world.‘
Tech keeps evolving, but your culture, your leadership, your humanity – that’s what really turns AI into impact.
So if you’re feeling the tension right now, that’s OK. It means you’re paying attention. Just don’t retreat from it – step into it – as a human, first.
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