40% of employers expect to reduce their workforce where AI can automate tasks
By 2050, AI will have fundamentally transformed the global workforce. Estimates (according to reports from PwC, McKinsey, and the World Economic Forum) suggest that up to 60% of current jobs will require significant adaptation. That shift has already started. So, the question is: are your leaders ready for what comes next?
Artificial Intelligence (AI) is changing the way we work. Fast. And while much of the conversation still focuses on systems, tools, and automation, there is a much bigger shift underway – one that every leader needs to be paying attention to. Because AI is here to support, not replace. This is not just about technology, it is about people, trust, and leadership.
Whether it is Gen Z treating ChatGPT as a colleague, or HR teams preparing for roles that do not yet exist, we are not talking about some future state, we are already in it. AI isn’t coming, it’s here. So, the question is: how do we lead through it?
In this blog, Axiom’s Aniko Czinege, explores what AI means for employee engagement and experience – and highlights the hard truths that leaders need to know to lead well in this AI‑driven era.
The leadership wake-up call
The AI Workplace Report by Freshworks Inc found that 40% of employees think AI policy and implementation sits with IT, with just 23% expecting business leaders to take the lead. That’s a problem, because if AI is reshaping how we engage, decide, communicate, and connect, then it needs to be on every leadership agenda.
But this is also an opportunity. An opportunity for leaders to take the fear out of AI and help their people focus on the possibilities, not just the risks. By proactively engaging teams in what AI could mean for them, their roles, and their customers, organisations can get ahead of the change and bring people with them, rather than leaving them behind.
It is easy to focus on the tools – how much time we will save, how many tasks we can automate – but this shift demands something else. It demands leaders who are ready to engage with tougher questions:
- How are we explaining what AI actually means within our organisation?
- Are we building trust – or leaving room for fear?
- Are we investing in people, or just in platforms?
For decades, Axiom has worked with organisations navigating change, and throughout that time we have learned that whilst technology might drive transformation, it is leadership that makes or breaks it.
How is AI impacting Employee Engagement & Experience?
Some employees are still “getting around to” AI, but many, particularly the younger generations, are already using it every day. According to a recent survey commissioned by Resume.org, 21% of Gen Z workers use ChatGPT regularly at work, with the same number admitting to spending over an hour a day on it during working hours.
Leaders can use these early adopters to help bring other employees along, creating a natural champion network to show AI in practice, share successes, and support others to get started. When done well, this approach removes fear and helps people see AI as an opportunity, not a threat.
Strikingly, and of some concern, over half of Gen Z workers say they would rather ask ChatGPT than their manager for help. And around one in five describe it as a companion or even a therapist. That may sound far-fetched, but it tells us something important: people are not waiting for permission, they are already adopting. If leaders do not catch up – not just technically, but emotionally – they risk losing connection with their teams.
This is where the emotional aspect of Employee Experience (EX) really matters. EX is not a dashboard metric; it is an emotional thing. It is about trust, clarity, belonging, and motivation – the stuff you feel as much as measure. AI might be able to offer advice or track sentiment, but it does not feel anything. And right now, what your people need most is to feel safe, supported, and seen.
A new kind of leadership
Let’s be clear, this is not about teaching every leader to write code, it is about building the kind of leadership that is fit for a fast-moving, unpredictable landscape. The kind that does not just implement AI tools, but helps people understand and feel confident using them, whilst protecting the cybersecurity of the organisation that employs them.
According to Gallagher’s 2025 Attitudes to AI report, 85% of business leaders are putting job protection strategies in place, and nearly half are offering AI training to employees. That is welcome progress, but it is only part of the picture, because if we expect employees to work differently, we need leaders who lead differently. Not just operationally, but emotionally.
Right now, younger executives are more likely than their older peers to believe that AI will have a “considerable” impact on business. Yet many senior leaders still feel unsure – unclear on the opportunities, and untrained in the risks. That gap is not just technical, it is cultural. This matters because leaders cannot build confidence in a world of AI if they do not have it themselves.
The need for a clear change and communication strategy
It’s now more important than ever for organisations to set out a clear change and communication strategy – not just for the tech, but for the people. Leaders need to actively engage their teams in what AI means for their organisation, their customers, and their day-to-day work. This is about helping people harness the potential of AI and see it as a positive, not a problem to fear.
So how do you do it? A three-step approach can help:
Step 1: Raise awareness
Start the conversation by making AI real for your organisation. Use lunch and learns or team meetings to explain what AI is, what it isn’t, and what it could mean for your business and customers.
Step 2: Show it in practice
Use early adopters and champions to share projects where AI has been applied successfully. Give employees a safe space to ask questions, explore case studies, and learn from real examples.
Step 3: Recognise and reward
Encourage teams to submit examples of how they have used AI to add value. That could be how AI has helped them to save time on a project or process, improve customer satisfaction, or speed up delivery. Celebrate success and share the benefits through regular surveys and updates, so people see AI making a difference.
This can all be supported by specific training for leaders on how to communicate change. It also means creating of a champion network for early adopters, and a manager advisory panel to keep the conversation flowing.
This is about people, not just platforms
AI can automate processes, write content, schedule meetings, even simulate thought and conversation. And it is evolving at lightning pace. But it cannot replace the feeling of being recognised. It cannot replicate the trust built in a difficult conversation, or the impact of well-timed praise. It cannot sense the unspoken dynamics in a room, and it does not know when to offer reassurance as well as a productivity boost.
That is the human side of leadership, and it is becoming more valuable, not less.
At Axiom, we believe emotional intelligence, curiosity, empathy, compassion, and even vulnerability are the hallmarks of modern leadership. They are the things that cannot be generated by an algorithm – and the qualities that help your people feel safe, motivated, and connected.
AI can suggest training, it can identify patterns, it can even flag moments worth celebrating. But it is still down to leaders to build relationships, to listen, to adapt communication styles – whether through psychometric profiling such as DISC or Insights Discovery, or through simple, human awareness. We cannot fully outsource the human experience, and we should not want to. If we did, we would all end up doing the same things in the same way, led by the same process. Taken to extremes, generative AI will talk to other generative AI , no human touch involved. Taken together, these topics are not how you build a culture, it is how you lose the one you had.
Leadership that connects
There is growing talk of AI’s ability to personalise communications, learning, and recognition. And it is true – done well, AI can support highly tailored employee engagement. But without strong leadership, that “personalisation” risks becoming mechanical. It might be timely, but it lacks emotional intelligence.
The best leaders will take what AI offers – insights, data, even support – and pair it with genuine connection. Because Employee Experience does not happen in a vacuum, it lives in moments of clarity, empathy, and recognition, and those do not come from a chatbot.
The communication challenge
It is worth noting that communication around AI is, in many organisations, getting worse – not better. Gallagher found a drop in internal communications about AI risks year-on-year, and yet, with something this fast-moving and potentially unsettling, silence is the worst strategy of all. Who are your people going to ask for clarity, especially when their manager is in another office, or a different time zone, AI?
The answer is a well-executed communication strategy that keeps AI front of mind and creates safe spaces for questions. An approach that ensures leaders are equipped to have the right conversations.
What your people need now is genuine human connection and conversation. Leaders do not need to have all the answers, but they do need to be visible, to invite the difficult questions, and to keep showing that AI is here to support, not replace. The more advanced the technology, the more human our leadership needs to become.
The real opportunity? Better leadership
When AI takes care of routine tasks, it gives leaders something precious: time. Time to listen, to coach, to think, to build trust. And to lead in a way that does not just get results, but builds resilience. If we get this right, we do not just adapt to AI, we grow because of it. We develop more confident, curious leaders. We create space for creativity, conversation, and collaboration. And we give our people reasons to stay, to care, and to contribute – not just to show up and survive.
Let us help your leaders lead with confidence
For over three decades, Axiom has helped large organisations navigate change. We have run conferences and engagement programmes, trained leaders at every level, and designed change communication strategies that help people feel part of what comes next.
We are already working with clients to:
- Create meaningful, human-centred conversations about AI and change
- Equip leaders with the emotional intelligence and communication tools they need to lead confidently
- Design long-term strategies that evolve with technology – not just tick boxes
- Help teams stay connected, engaged and inspired – no matter what is changing around them
AI will not make us better leaders, but it might just give us the space to become them – if we are ready to lead differently.
