AI transformation is underway but where are the leaders that will ensure their companies implement it successfully? Professor David De Cremer explains why treating people like data is failing leadership in the AI era and why we need to learn how to lead with empathy and human-centric strategies
In July The People Space introduced David De Cremer’s concept of the AI-savvy leader, where leadership must prioritise human-centred AI integration to drive business success. De Cremer, Dunton family dean of D’Amore-McKim School of Business at Northeastern University, warned that delegating AI adoption to tech experts without aligning it with business objectives was a major leadership pitfall, noting that without strategic oversight AI often fails to deliver real value.
Now, in an extended conversation with De Cremer for our Work’s Not Working… Let’s Fix It podcast, he offers even deeper insights into why so many organisations struggle to unlock AI’s full potential and, more importantly, what steps leaders can take to course-correct.
The leadership struggle: tech-first, business-second
In the podcast episode People Aren’t Data: How to be an AI Savvy Leader De Cremer expands on his earlier critique of how AI is often misunderstood and misapplied in organisations. "Too many leaders are dazzled by AI’s capabilities," he explains, "but they’re forgetting that AI is a tool, not a strategy. Leaders are still struggling with how to integrate AI into their business plans, which means AI projects often fall flat or never progress beyond the pilot stage."
One of the key reasons for this, he continues, is the way AI is introduced in the workplace. "AI is framed as this game-changing technology – something leaders feel they must adopt right now or risk falling behind. But in reality adopting AI without a clear purpose leads to poor results. The fear of missing out is driving decisions, not a strategic vision."
De Cremer explains that leaders, especially those in the C-suite, are often ill-equipped to handle AI transformation because they haven’t been trained to understand or manage AI. "Most of today’s executives were educated in a pre-AI era. They didn’t have courses on artificial intelligence or even the concept of sustainable, tech-driven business models,” he says. So when AI comes along these executives feel out of their depth, he notes, and that’s why they delegate the responsibility to tech teams.
This delegation, while understandable, creates a disconnect between AI’s potential and business needs. Tech experts are skilled in the technology itself but often lack the business acumen needed to align AI projects with broader company goals. As De Cremer points out: "Without the right business questions driving AI use, companies are left with great technology that doesn’t solve the right problems."
Trust and the human cost of AI
Another important layer De Cremer brings to the discussion is the psychological impact of AI on employees. "The presence of AI creates a lot of uncertainty," he says. "Employees feel anxious about their roles, their job security and what the future holds. This anxiety leads to resistance. In some cases people sabotage AI systems or try to work around them, purely out of fear."
He notes that much of this fear stems from a lack of clarity from leadership. "When leaders fail to explain the purpose and benefits of AI – both for the company and for the employees – workers are left wondering: 'Will AI take my job? What’s going to happen to me?' These are legitimate concerns and unless leaders address them head-on the organisation will suffer from disengagement and burnout."
This insight underscores the critical need for transparent communication during AI adoption. It’s not enough to simply roll out new technology and expect everyone to embrace it. Leaders must create an environment where employees feel involved in the process and can see how AI will augment, rather than replace, their roles.
Soft skills: the key to future leadership
Building on this De Cremer says the future of leadership will be determined by soft skills. While AI will handle many of the technical, routine tasks that currently occupy managers’ time, the ability to lead with empathy, communicate effectively and foster collaboration will become increasingly valuable.
"Emotional intelligence, creativity and collaboration – these are the skills that will set great leaders apart in an AI-driven world," De Cremer argues. As he adds, AI can process data and automate workflows but it can’t inspire a team or build a culture of trust. That’s the leader’s job, and it’s more important than ever.
For HR professionals, this means cultivating an organisational culture where soft skills are prioritised and developed. Leaders who invest in their own soft skills – and those of their teams – will be far more successful at navigating the complexities of AI integration.
From fear to opportunity: redefining AI in the workplace
One of the most critical elements De Cremer highlights is the need for a shift in mindset around AI. Many organisations still view AI through a lens of fear – fear of job losses, fear of inefficiency and fear of falling behind competitors. De Cremer challenges leaders to reframe their approach.
"AI is not here to replace humans," he says emphatically. "The goal is augmentation. Leaders need to think about how AI can help their employees do their jobs better, not replace them entirely."
He offers a practical example: "Think about data analytics. AI can process huge amounts of data far faster than any human. But the interpretation of that data, the insights that come from it – that still requires human judgment,” he says. AI can bring the information to the table but it’s the people around the table who make the decisions.
De Cremer’s argument is clear: AI is a tool but it’s humans who drive value. Leaders who understand this dynamic will be best positioned to lead their organisations into the future.
Lifelong learning: a necessity in the AI era
De Cremer also stresses the importance of continuous learning in a fast-evolving AI landscape. AI isn’t a one-time implementation, he explains. It’s constantly evolving, which means leaders and their teams need to evolve with it. Lifelong learning is no longer just a nice-to-have; it’s a necessity.
For HR leaders this means creating opportunities for ongoing education and development – both for employees and leadership. HR should play a pivotal role in promoting a culture of learning, De Cremer says. That includes offering AI training but also fostering the emotional intelligence and creative thinking that will become so essential in the future workplace.
Practical steps for HR leaders
As AI continues to permeate all aspects of the workplace, HR leaders are uniquely positioned to guide their organisations through this transition. Drawing on De Cremer’s insights here are several practical steps HR can take:
- Create an AI-enabling culture: Shift the focus from efficiency-driven AI use to augmentation. AI should be seen as a tool that enhances human capabilities, not one that replaces them. Encourage leaders to stay involved in AI projects and align them with strategic business goals
- Prioritise transparent communication: Alleviate employee concerns by being open about how AI will impact roles within the company. Explain how AI will support – not threaten – their jobs, and encourage feedback throughout the process
- Foster a culture of lifelong learning: Provide opportunities for ongoing AI education and skill development. Make sure both technical and non-technical staff have access to resources that will help them adapt to AI-driven changes
- Develop soft skills: Invest in training that builds emotional intelligence, collaboration and creativity. These skills will become increasingly important as AI takes over more routine tasks
- Lead by example: HR should model the behaviours and attitudes they want to see in the organisation. If leaders show that they’re willing to embrace AI, learn from it and integrate it into their decision-making, employees will be more likely to follow suit.
As De Cremer points out AI represents both a challenge and an opportunity for today’s leaders. While the technology itself is powerful it’s the human element that will determine whether AI succeeds or fails in your organisation. By fostering a culture of trust, embracing lifelong learning and developing the soft skills that will be so crucial in the AI era, leaders can not only survive but thrive in this new world of work.
For a deeper dive into how to make AI work for your organisation, listen to the full podcast episode People Aren’t Data: How to be an AI Savvy Leader with David De Cremer