Employees, Leadership Disconnected Over AI

If you still think AI will replace humans, you must read this.

Workday published a new global research report, Elevating Human Potential: The AI Skills Revolution, which studied AI’s impact on jobs. The findings challenge the narrative that AI will replace humans, revealing instead that AI will catalyse a skills revolution where uniquely human capabilities like empathy and ethical decision-making become the most valuable assets at work. This is a fundamental shift juxtaposed against current human thinking. The rapid evolution of AI-powered agents is expected to hugely impact jobs, with many fearing it will lead to diminished roles or, in the worst-case scenario, unemployment.

This research points to a more optimistic future.

Curiously, it is the most active users of AI who are most optimistic about its benefits, with a sentiment score of 4.23 out of 5 while those planning to adopt AI within the next 12 months show the lowest optimism with an average score of 3.89 out of 5. For the optimists, AI helps free them up for more meaningful work, with 93 per cent in agreement that AI allows them to focus more on higher-level responsibilities such as strategy and problem-solving.

Although societal concerns about AI damaging trust exist, 90 per cent of workers agree AI can play a significant role in increasing transparency and accountability in organisations, with leaders (92 per cent) and employees (89 per cent) closely aligned. Where employees and leaders disagree is the growing need for human connection. 82 per cent of employees think it’s needed, while only 65 per cent of managers agree.

It Is Not Always About AI

It cannot be stated enough that uniquely human skills such as ethical decision-making, empathy, relationship-building, and conflict resolution are viewed as critical for success in an AI-driven economy. “The conversation around AI often focuses on fear and job loss, but we see it as an incredible opportunity,” said Jim Stratton, CTO, Workday. “By embracing AI for good, we can elevate what makes us uniquely human – our creativity, our empathy, our ability to connect – and build a workplace where these skills drive success. Our research shows that workers are ready to embrace this possibility as a reality.”

The survey says 83 per cent of respondents believe AI will both elevate the importance of uniquely human skills and enhance human creativity, leading to new forms of economic value, signalling a growing positive sentiment around the adoption of AI in the workplace. It is an improvement from earlier Workday-commissioned research on AI finding only 52 per cent of workers welcomed AI in their workplace a year ago.

If anything, today, these findings underscore the critical need for uniquely human skills like creativity, leadership, learning, trust, and collaboration to thrive in an AI-powered world. This pivotal moment, where we collectively recognise AI’s transformative role in the future of work and the enduring importance of uniquely human skills, is leading to an AI-driven skills revolution. One that stands to impact everyone in some capacity from factory workers to data analysts.

“AI is driving us towards a future where we can harness our innate human skills to connect, create, and innovate,” said Sadie Bell, VP of People Systems, HPE. “This isn’t just about efficiency and problem-solving; it’s about unlocking our potential to build a future that prioritizes skills like empathy, ingenuity, and our shared humanity.”

Nearly all (93 per cent) of AI users agree that AI allows them to focus on higher-level responsibilities such as strategy and problem-solving. What’s more, active AI users consistently have positive perceptions of its benefits, with 92 per cent of employees and 95 per cent of leaders in agreement. These findings highlight the transformative potential AI can have in the workplace, helping free up human capacity for meaningful and innovative collaboration, which will in turn unlock new ideas and opportunities for businesses to adapt and grow in a VUCA cum BANI economy.

Where Uniquely Human Skills Reign Supreme

AI is already reshaping the workplace. 81 per cent of participants in the study recognise that AI is changing the skills required for their jobs. The top three uses of AI today include data analysis (51 per cent), fraud detection and security monitoring (43 per cent), and human resources and recruiting (39 per cent). While some will need to develop new skills to use AI at work, they’ll also need to continue cultivating uniquely human skills to succeed.

The data reveals a clear trend: human-centric skills are becoming more vital in the face of increasing AI adoption. “In 2025, AI will play the critical role of unlocking efficiencies in how teams operate, but it won’t replace the essential human elements, like empathy, communication and relationship building,” said Jennie Rogerson, Global Head of People, Canva.

The skills deemed least likely to be replaced by AI are also considered the most valuable at work: ethical decision-making, connection and relationship building, emotional intelligence and empathy, and conflict resolution. In fact, across multiple scenarios, ethical decision-making consistently ranked as the most valuable human-centric skill today and in a future shaped by full AI adoption.

The Disconnect on Human Connection: Leaders Must Act

A stark disparity between employees and leaders is emerging regarding the essential need for human connection in the workplace. While 82 per cent of individual contributors believe the craving for human interaction will only intensify as AI usage increases, 65 per cent of managers share this view. This disconnect presents a critical opportunity for leaders to actively prioritise building genuine human connections and enhancing strong relationships within their teams.

When asked how AI adoption will impact leadership and management priorities, respondents identified three key areas: enhancing data-driven decision-making, prioritising upskilling and learning to use AI technology, and reallocating resources to more critical areas as AI automates routine work. The equal weighting across these responses underscores AI’s potential to assist leaders in each of these critical areas, freeing them to focus on cultivating empathy and deeper connections within their teams.

As AI revolutionises the workplace with 90 per cent of workers agreeing it can enhance organisational transparency and accountability, success cannot be achieved without a joint commitment to responsible AI. The data reveals there is a widespread expectation, with 54 per cent agreeing that the technology sector will lead efforts to ensure transparency and accountability in AI integration.

However, the shared responsibility attributed to individual organisations (12 per cent) and governments (12 per cent) reflects a broader sentiment that gaining trust in AI requires far more collaboration across sectors. Tech companies, organisations, and governments must work together for AI to benefit us all. A future-creating collaboration where humans and AI partner to achieve more than either could alone.