Artificial Intelligence (AI) is becoming an established part of organisational life, and for many managers, the software already supports everyday tasks such as data analysis, research synthesis and administrative work. When applied thoughtfully, these tools can improve efficiency and decision quality. However, as AI applications such as ChatGPT and other Large Language Models (LLMs) become more embedded in leadership practice, it raises important questions about how and where the technology should be used.
This article explores what has changed for leaders in the so-called ‘Age of AI’, why human skills in leadership remain critical, and how organisations can realise the benefits of AI without unintentionally weakening their core leadership capability.
Leadership in the ‘Age of AI’ – what has changed?
AI tools now, arguably, enable leaders to process information more quickly, identify patterns in data and reduce the time spent on routine tasks. Business schools and policy bodies increasingly recognise that, when used appropriately, AI can support better-informed decisions and free leaders to focus on higher-value work. However, the impact of AI-enabled software (largely using LLM chatbots) has been extremely varied across different sectors and roles, and many businesses are struggling to quantify the genuine impact of AI on their bottom line, and to justify a solid ROI.
Despite this, research from Westminster Business School in November 2025 suggested that effective AI adoption in leadership styles is less about technical expertise and more about strategic judgement; understanding where AI software adds value and where human involvement remains essential. AI is most effective when it supports, rather than substitutes for, leadership thinking.
The pace of adoption is also significant. A study by Accenture reported that 78% of UK workers now use generative AI in the workplace at least weekly, while, worryingly only 24% have received training on how to collaborate with it effectively (Personnel Today). This capacity gap does not suggest that AI use is inherently problematic, but it does indicate that many leaders are navigating new tools without shared guidance or clear development support.
Gallup data from June 2025 also shows that workers in leadership or managerial roles are adopting AI more frequently than others: 33% of leaders use AI tools weekly or more, compared with 16% of individual contributors. This suggests managers are often at the forefront of experimentation — and therefore play a critical role in setting norms around how AI is used in practice.
Are Human Skills In Leadership Still Important?
Yes. Despite these changes and the pace of change, the fundamentals of leadership remain largely unaltered. AI, like all software applications, stands out in structured tasks with clear parameters. Leadership, particularly in people-centred contexts, is rarely structured in this way.
Skills such as emotional intelligence, judgement, empathy and contextual awareness continue to underpin effective leadership. This means that over-reliance on AI (especially ChatGPT) for activities such as difficult conversations, presentations, motivation or performance feedback may reduce opportunities for leaders to practise and develop these capabilities for themselves.
This doesn’t mean that AI has no role in supporting people management; for example, in report preparation, idea generation, or analysis. However, human insight remains central to building trust and understanding, with self-awareness and authenticity being more crucial than ever in an increasingly technology-enabled environment.
Similarly, analysis from Skills England points to the ongoing importance of non-technical competencies such as judgement and understanding alongside AI adoption. As technology becomes more capable and ubiquitous in the office, the ability to interpret nuance, respond to emotion and adapt behaviour remains firmly human. For most leaders, effectiveness increasingly depends on making deliberate choices about when to rely on AI and when to engage directly.
AI And Leadership Skills: Embracing Potential While Avoiding The ‘Technology Trap’
The challenge for organisations is not whether leaders should use AI, but how they are supported to use it well. Without guidance, there is a risk that efficiency gains are prioritised at the expense of reflection, learning and capability development.
For HR and L&D professionals, this reinforces the need for balanced leadership development strategy must help leaders to:
- Build their confidence and fluency in using AI tools appropriately
- Develop the judgement to interpret and challenge AI-generated outputs
- Continue to strengthen the human leadership capabilities that technology cannot replace
Experiential development remains particularly valuable here. Leaders benefit from opportunities to practise difficult conversations, decision-making under uncertainty and reflective leadership; areas where AI can inform but not lead. As routine tasks become increasingly automated, the distinct contribution of leadership lies less in speed or information access and more in how leaders think, relate and decide.
Find Out More
Discover how GRA supports leaders to develop their human skills alongside technological change: Download the GRA Solutions Guide to learn how our experiential leadership development strategy can build enduring capability in your business.
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