FT report says leaders need judgment, not just expertise, as AI spreads

In short: A Financial Times report says AI is changing leadership, and executives now need stronger judgment and people skills, not just subject expertise.

What's going on

The Financial Times reports that many leaders can no longer rely on being the top expert in the room. Xenia Wickett, an adviser on international affairs and leadership, says a leader’s job is shifting from having all the answers to making good calls with incomplete information.

One reason is uncertainty from world events. Wickett says companies used to treat geopolitics like a yearly checkup, by bringing in an expert once a year. Now, she says businesses are training middle managers to think about these risks, so decision-making is spread out instead of stuck at the top.

The report also highlights the human side of using AI at work. Katie Muldoon, a former RAF officer turned psychoanalyst and coach, describes an “execution gap.” This is when people know what to do, but emotions like fear or pressure stop them from doing it. She argues leaders need to build trust, because in tense situations people often trust the person delivering information more than the information itself.

Sonya Cullington, a cyberpsychologist (someone who studies how technology affects our minds and behavior), says leaders should pay attention to what AI tools are doing to employees, not only what they do for productivity. She points to “psychological safety,” meaning people feel safe speaking up, as a requirement for AI rollouts to work.

What to watch

The FT report also warns about “information diets.” Social media and chatbots can repeat a narrow view of the world (like only reading one newspaper). Leaders may need new habits to avoid being overly reassured by tools that tell them what they want to hear.

Source: Financial Times