Leadership and AI: Will You Barely Survive or Thrive?

What do leaders need to understand about leadership and AI? In his book, On the Origin of the Species, Charles Darwin’s theory of natural selection suggests that it is not necessarily the strongest or most intelligent species that survives but those best suited to adapt to changing environments.

AI is likely to reshape many jobs and careers soon. It may automate routine tasks across industries, requiring workers to adapt and develop new skills. While some roles may be displaced, AI could also create new opportunities and enhance productivity in others. The impact will vary by sector, but most workers will need to become more adaptable to thrive in the future.

To examine the impact of adaptability on performance rankings, Zenger Folkman gathered data from 301 individual contributors. Each individual contributor was evaluated by their manager on their adaptability. Their manager also gave them a performance rating for both their productivity and effort. Note that the least adaptable individual contributors had an average performance rating at the 10th percentile, but the most adaptable were rated at the 84th percentile. This result came from data collected in the last three years.

Additional data on 3,209 managers gathered in the last three years show the same trend of adaptability and overall effectiveness rankings from 360-degree feedback of managers, peers, direct reports, and others. These studies make it clear that adaptability is a critical trait for both individual contributors and managers today and will become more important in the future.

Both of these studies clearly point out the wisdom of Charles Darwin’s insight that people need to be more adaptable to survive and thrive. However, simply recognizing this need often leaves people uncertain about the specific actions they can take today to better prepare for the future.

Leadership and AI: Which Competencies Impact Adaptability the Most?

We analyzed data collected on managers by comparing leaders in the top 10% for adaptability with those in the bottom 10%. Then, we reviewed how both groups scored on each of our 19 leadership competencies, focusing on the areas showing the largest, most significant differences. What we found surprised us: the most substantial differences emerged in the following seven competencies.

1.         Collaboration and Teamwork

2.         Builds Relationships

3.         Values Diversity

4.         Communicates Powerfully and Prolifically

5.         Displays High Integrity and Honesty

6.         Inspires and Motivates Others

7.         Develops Others

Leadership in the Age of AI Requires Soft Skills

These are all soft skills. Other competencies, many of which are hard skills, also show differences but are less significant. This data caused us to ask the question, “Why are soft skills so important and impactful for leaders who wish to be more adaptable?” One thing that has become clear about AI is that soft skills are the area where AI cannot be as useful or effective. AI is less effective at dealing with negative emotions or creating positive emotions in others. Many studies have pointed out the outweighed impact of soft skills in today’s work environment.

1. A 2017 study by Deloitte Access Economics predicted that soft skill-intensive occupations would account for two-thirds of all jobs by 2030.
2. The same study found that businesses consider soft skills 25% more important for business success than technical skills.
3. LinkedIn’s 2019 Global Talent Trends report found that 92% of talent professionals say soft skills are equally or more important than hard skills when hiring.
4. 89% said that a new hire doesn’t work out often due to a lack of soft skills.
5. A study by Harvard University, the Carnegie Foundation, and Stanford Research Center found that 85% of job success is due to having well-developed soft skills.
6. McKinsey Global Institute predicts that as automation increases, the demand for social and emotional skills will grow by 26% in the US and 22% in Europe by 2030.

These data points demonstrate the growing recognition of soft skills’ importance in various aspects of business, from hiring and leadership to productivity and future-proofing organizations against technological changes.

The Future of Leadership and AI

Preparing for the future can feel challenging, especially with the uncertainty surrounding AI and the obstacles it may present. However, focusing on developing soft skills is a practical way to enhance your adaptability. We encourage you to review the seven skills listed above and identify any significant weaknesses. If one stands out, dedicate time and effort to improving that area. If none seem like a major weakness, choose a soft skill where you can build a profound strength. Ask for feedback from others about what you could do to stand out and differentiate yourself on that one competency and take action. Then, set a concrete goal and commit to taking a specific step in the next week. Don’t wait—start now to future-proof your leadership skills.

—Joe Folkman