5 Essential Skills for Leaders in the Age of AI

If proof were needed that we’re moving beyond the hype when it comes to Artificial Intelligence and into the reality of it transforming the world of work, then the last few weeks have provided it.  

In the middle of January, we saw the launch of the Government’s AI Opportunities Action Plan in which Chair of the Advanced Research and Invention Agency, Matt Clifford CBE, set out 50 recommendations to put the UK at the heart of the global AI revolution.

The plan and the Government’s response to it show we’re at a critical point when it comes to deciding the global winners and losers of the AI revolution. In the words of Clifford, “business as usual is not an option”. 

Hot on the heels of the Government’s action plan, this week Workday announced the launch of Workday Digital Workforce Management, the AI System of Record for employees, contractors and AI agents. This is an exciting leap forward, giving organisations the power to realise the true potential of Agentic AI and creating a workplace where humans and AI work together seamlessly.

It was against this backdrop that Workday invited the brightest and boldest in UK business to the first ever Illuminate Work, our flagship AI event hosted right here in London. Customers, partners and industry experts joined us to discuss the power of AI in the workplace. And one question was front and centre: How will AI change the skills needed to succeed in the workplace?

It’s a question we’ve been grappling with for some time and one that we sought to answer when we undertook our global study, Elevating Human Potential: The AI Skills Revolution.  Through that research we found that AI is enhancing human creativity and that its growing use will make human skills such as empathy, creativity, and ethical decision-making, more valuable. It also explores how the concept of leadership will change in this new era, so let’s take a closer look at what the data tells us.

The Leadership Gap in the Age of AI

One of the most striking findings from the UK data reveals that there’s a disconnect between employees and leaders when it comes to the importance of human connection. While 83% of individual contributors in the UK and Ireland believe that employees will crave more human connection as AI usage grows, only 65% of managers agree. 

This leadership gap is particularly concerning when you take into account two critical trends:

1. Top performers are leaving first: Voluntary turnover of high-potential employees is on the rise in 75% of the industries we track.  

2. Meaningful work fosters loyalty: Employees who believe they’re doing meaningful work report greater feelings of accomplishment and loyalty, even under challenging workloads. 

In short, employees want to feel valued, connected and empowered to do meaningful work. And those with the highest potential are the most likely to leave if they don’t.  

In the UK, where businesses are already facing a challenging economic environment, human-centric leadership is going to be more important than ever. But what is that going to look like?

Embracing human-centric leadership

Human-centric leadership is all about valuing and promoting the unique skills that humans can bring to the table; skills such as empathy, creativity, and ethical decision-making. Our research identified five key human-centric skills that respondents believe cannot be replaced by AI:

• Human Networking and Relationship Building: While AI can analyse data and identify patterns, it cannot replicate the nuances of human connection. The ability to build strong relationships, both internally and externally, will remain a critical skill.

• Emotional Intelligence and Empathy: Understanding and managing emotions, both our own and those of others, is a uniquely human trait. Empathy and emotional intelligence are crucial for effective leadership, collaboration, and customer service.

• Ethical Decision-Making and Moral Judgment: As AI systems become more sophisticated, the ability to make ethical decisions and exercise moral judgment will become even more important, particularly when it comes to ensuring that AI is used responsibly.

• Conflict Resolution: Disagreements and conflicts are inevitable in any workplace. The ability to navigate and resolve them in a constructive manner is something best left to us humans. 

• Cultural Sensitivity and Adaptation: In an increasingly globalised and diverse world, cultural sensitivity and adaptability are essential for success. You need to understand and appreciate different cultures if you want to create a true sense of belonging amongst employees.

The Future of Work in the UK

While we’ve all become used to change, the AI revolution is going to transform the workplace at a pace we’ve not seen before. As well as unleashing the transformative power of technology, that’s going to require us to reconnect with what’s unique about us as human beings, creating workplaces that value connection and collaboration, and promoting a human-centric approach to leadership.

While talk around AI may be dominated by technology, it’s the opportunity to create a more human-centered workplace, that empowers individuals and elevates human potential, that we should be excited about.

Looking to unlock human potential in an AI-driven world? Read “Elevating Human Potential: The AI Skills Revolution” and dive into all things AI in our AI Masterclass series.