When business leaders contemplate AI’s impact on the workplace, they often focus on automation, cost-cutting, and enhancing operational efficiency. However, AI is quietly but profoundly transforming the very fabric of work itself. Rather than merely driving efficiency, the true significance of AI lies in how it is redefining not only the way tasks are carried out but also which skills are in highest demand. The influence of AI on today’s workplace is rapidly evolving beyond initial assumptions, ushering in deeper and often unforeseen changes that are reshaping the future of work.
It is fundamentally altering the way business leaders operate across various aspects of their roles, not just their jobs but also the way their team members function. AI gives the business leaders deep insights into structured and unstructured data in a more meaningful way, which can translate into business competitiveness. The expectation is faster output, better margins, and a future-ready workforce. While initial AI adoption can cause a short-term slowdown as organisations adapt and retrain teams, it isn’t a simple plug-and-play solution, ultimately, it is a transformation catalyst.
How AI augments human skills
AI is enhancing business processes by augmenting human capabilities. It streamlines routine and repetitive tasks, which allows employees to concentrate on higher-value, more strategic activities that require critical thinking and creativity.
Whether it’s agentic, generative, or conversational AI, these technologies collectively amplify the workforce’s capabilities. As AI streamlines routine processes, employees are shifting their focus from producing original content to evaluating, refining, and guiding AI-generated outputs. This transition places a greater emphasis on curating high-quality data and steering business processes in meaningful directions.
This new dynamic elevates uniquely human skills like emotional intelligence, creative and critical thinking, adaptability, and sound ethical judgement. These abilities are more vital than ever, complementing technical proficiencies like AI literacy and data analysis. As AI becomes increasingly embedded in everyday business operations, it is essential for leaders to recognise and champion the irreplaceable value of human insight and intuition. These qualities are what will allow organisations to differentiate themselves and maintain a distinct competitive advantage in a rapidly evolving market.
Embracing AI’s potential
A McKinsey report on AI adoption shows that 94% of the employees are familiar with GenAI technology. This research also suggests that employees are more familiar and ready to adopt AI tools than leaders realise. They are learning to work with AI, yet their business leaders underestimate the extent of their comfort with an AI-driven business tool. While the C-suite believes that only 4% use AI for 30% of their daily work, the reality is a whole lot different. Three times more employees are actually using AI for their daily work than what their business leaders believe. Moreover, 70% of the employees believe that in the next 2 years, GenAI will help them manage 30% or more of their daily jobs at work. According to the Microsoft 2025 Work Trend Index, 93% of business leaders in India are looking to use AI agents to boost their workforce capabilities.
Over 92 per cent of Indian leaders said they are considering adding AI-specific roles to their company. These new roles might include AI workflow designers, software operators, and ‘agent bosses’ who will be tasked with managing teams of AI agents to enhance productivity, as per the report.
Contrary to leaders’ assumptions, the majority of employees do not perceive AI tools such as Microsoft Copilot, Notion AI, and ChatGPT as a threat. In fact, they are becoming digital assistants used in their daily workflows. Most employees find the tools helpful in amplifying the decision-making process. Interestingly, the current situation is almost like ‘Bring Your Own AI’ (BYOAI), where many employees, without formal guidance, are incorporating AI tools into their workflows, leading to a kind of ‘shadow IT’ adoption.
Senior executives often fail to recognise the importance of fostering AI literacy across all tiers of their organisation. By empowering managers who are already adept at using AI, leaders can encourage these individuals to guide their teams in mastering the skill of crafting effective questions and employing purposeful prompts, thereby enhancing overall team capability and readiness for the future.
Shifting AI strategy from tools to talent
The biggest mistake business leaders make is treating AI like a procurement decision. The true value lies in building AI-ready cultures, where experimentation is encouraged, learning is continuous, and employees are supported to evolve their roles. Today, a significant gap exists between leaders’ expectations for AI proficiency and the actual AI training offered to employees.
Leaders face a pivotal choice: to create workplaces where people feel like cogs in a machine or to build environments that foster empathy, creativity, and purpose. The opportunity to create a more human-centric future of work is well within reach.
Leaders should entrust the millennial managers, those who are power users of AI, to leverage the technology to not only optimise their individual productivity but also improve their team’s AI literacy, enhance broader business processes and influence business outcomes.