By Professor Keiichi Nakata
The impact of AI has left organisations facing a pressing challenge: how do they develop leaders capable of navigating a future that is increasingly unpredictable?
As we advance further into Industry 5.0 – the era of human-machine collaboration – jobs, industries and business models are being transformed.
AI might have changed the context in which leaders operate, but the basic principles of leadership and change management remain the same. The challenge is not simply learning how to use AI but developing the judgement and critical thinking required to lead organisations through unprecedented change. For business schools, this raises a key question of how we can develop leaders for this new world.
As part of its recent report series ‘Leadership Futures’, Henley Business School spoke to senior industry leaders to get under the skin of where capability gaps exist today. Through these insights alongside faculty expertise, it has created a framework of eight distinctly human capabilities that AI can’t replace.
Keiichi Nakata, Director of AI & Automation at the World of Work Institute, Henley Business School, explores each core capability and how Henley’s AI programmes support their development.
Soft skills set the leadership tone
The only certainty in business today is uncertainty. Leaders are expected to make decisions based on incomplete information, navigate situations for which there is no precedent or blueprint, and recalibrate the right balance of human-machine collaboration at every turn.
While the core qualities needed today are not new, they are becoming central to the role of leaders who must prioritise resilience and adaptability to secure long-term business performance. Soft skills are fast becoming the backbone of business with the capabilities of empathy, trust, listening, curiosity, judgement, courage, self-awareness and adaptability taking centre stage.
Successful leadership cannot be measured in technical capability alone, which is why our AI programmes and initiatives put the development of human capabilities at their core. Whether it’s through short courses for senior leaders or AI and digital apprenticeships, we help professionals at all career stages hone their critical thinking, judgement, empathy, curiosity, communication and collaboration skills. The result is leaders who can navigate complexity, adopt new technologies responsibly, and deliver meaningful organisational impact.
1. Empathy
While change is inevitable, we cannot underestimate its impact on people. Being at the helm during change as significant as Industry 5.0 means today’s leaders need to put greater emphasis on empathy, to understand how decisions are experienced by others. This means prioritising people over process. It means recognising that the success of any business transformation or change management programme comes through people.
2. Trust
Building trust within teams and the workforce is more imperative than ever, as people look towards their leaders for reassurance and guidance. The introduction of AI doesn’t necessarily change organisational characteristics but it can amplify them – both positively and negatively. Through our conversations we know that where trust is strong, senior leaders can move more quickly, and identify and resolve problems more effectively due to the collaborative and respectful nature of relationships. Where levels of trust are low, on the other hand, it can become a hindrance which could result in lost investment and even a more distrustful workforce.
3. Listening
Linked very closely to empathy and trust is the need for leaders to listen to others. People need to feel heard, involved, and that their voice can make a difference. They must also feel psychologically safe and that the environment exists for them to contribute and raise concerns without fear of retribution. But these conditions can only be created and cultivated from the top down. Leaders who listen will also be much better placed to spot risks early and then pivot strategies to maintain business resilience.
4. Curiosity
Remaining curious and adaptable is hugely important in situations where the path to resolution is unclear. This is where continuous learning is key along with the ability to learn from mistakes, reflect on outcomes, and explore different approaches. What worked today might not work tomorrow which is why making room for experimentation with technology and new ways of working is imperative. Creating a safe environment to ask questions is a core part of a senior leader’s capability toolkit.
5. Judgement
Where incomplete information exists, having sound judgement is becoming a super skill. Senior leaders in our report agree that waiting for clarity carries its own risks and informed decisions need to be made in the absence of certainty. This requires judgement and the confidence to act based on critical analysis and assessing competing risks, all while remaining agile to evolving circumstances.
6. Courage
This leads into the next capability of courage. Uncertainty requires leaders to step out of familiarity and shift expectations. This takes courage and a willingness to admit that you don’t have all the answers. It’s acceptable to make mistakes but you will be measured on how you take a decision in the first place and what is learnt from it. Having the courage to confront difficult situations and by exercising critical, inclusive, empathetic and accountable judgement, leaders can experience growth beyond their comfort zone.
7. Self-awareness
Closely linked to courage is self-awareness. This complementary capability ensures that decisions made today are fit for purpose and not only reliant on past behaviours or ways of working which might limit success. Being able to reflect, recognise strengths and weaknesses, and spot where a different approach might be better ensures continued personal and business growth.
8. Adaptability
Underpinning each capability is the need to be adaptable. It’s hard to escape it in today’s business environment, when uncertainty from often uncontrollable influences is constant. Being adaptable is central to managing change at every level.
As these competences become core to leadership effectiveness, business schools like ours play a vital role in helping leaders develop them. More than providers of knowledge, we are increasingly becoming environments where leaders learn how to think critically, challenge assumptions, navigate complexity and lead through uncertainty. AI transformation is a people challenge, not a technology one.
Professor Keiichi Nakata
