November 2024

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AI vs EI? Why Research Finds a ‘Yes, AND’ Approach to Be Most Effective

Who’s winning the artificial intelligence race: machines or people? As companies make massive, unprecedented investments in artificial intelligence technologies, where does that leave human skills, or EI? According to a growing body of research around the globe, the AI race has mostly caused organizations to neglect investing in human skills, even those needed to effectively adopt and implement AI. The result? Employees are both unhappy and, so far, unlikely to adopt AI successfully at work.

1. CEOs ‘giddy’ about AI  💸

The excitement around AI has led to massive investments from companies around the globe. The AI market reached $184b in 2024, and global spending on AI is projected to reach approximately $632 billion by 2028. A survey of US CEOs found that 73% say generative AI is a “top investment priority,” and 72% of businesses have already adopted AI for at least one business function, according to McKinsey.

“I think it’s a recognition that generative AI is transformational and that it’s not hype,” Paul Knopp, CEO of KPMG in the U.S., told Axios. “It will provide opportunities to make workforces and business processes more efficient.”

2. But employees aren’t feeling the hype

A troubling paradox is growing around AI adoption: While leaders devote more resources to AI, employees feel less ready.

The number of employees who say they are very prepared to work with AI dropped by six percentage points from 2023 to 2024, according to Gallup. Only 1 in 10 employees use AI at least weekly, and 7 in 10 never use it at all. These figures remained essentially unchanged from 2023 to 2024, suggesting that AI adoption requires leadership and training to increase usage.Most workers aren’t even aware of organizational efforts to integrate AI. Only a third (33%) of all U.S. employees say their organization has begun integrating AI into their business practices, even while the same research found that 93% of Fortune 500 CHROs say their organization has begun using AI tools and technologies to improve business practices – an astonishing 60pt gap!

It seems employees aren’t aware of, or excited about, the AI revolution. Why?

3. Amazing new technology… same old change management train wreck

If leaders want to see the productivity and efficiency gains realized that AI promises, they need to bring people along – and invest in the people skills that make technological change successful. AI can only transform your business if your people use it.

But that is easier said than done.

Change is hard. There’s a popular statistic that 70% of organizational change efforts fail. Who knows if that number is accurate, but it points to a reality many of us have experienced: Change efforts are often met with resistance and not as successful as organizations would like them to be. The latest research indicates we’re doubling down on this failed strategy with artificial intelligence. Woohoo.

What’s the typical change management playbook? Leaders “create urgency” and push people to “jump into the new paradigm.” They make the case by explaining what’s wrong with the current situation and how the changes will lead to a better and brighter future. They bring charts, graphs and experts. With AI, this isn’t a hard case to make:

• ChatGPT scored a 155 IQ, which is better than 99% of humans
• AIs detected tumors on a CT scan with an error rate 20x lower than a human radiologist.
• AIs spotted legal issues in nondisclosure agreements more accurately than top lawyers
• AI helped consultants develop more (+12.2%) and better ( +40%) ideas, more quickly ( +25%)

The problem with this playbook? It ignores some basic principles of how the brain responds to change and uncertainty. The brain doesn’t care about facts; it cares about safety and belonging. How will this impact me? What will happen to my job, our department? And when employees perceive change as a threat, and leaders never address those fears, everyone gets stuck in a vicious cycle of fear and resistance. It seems we’re at the beginning of that cycle with artificial intelligence adoption in the workplace.

“Without effective leadership, AI adoption in the workplace will remain limited,” Gallup wrote in its latest piece on AI in the workplace. “This means that the billions of dollars being invested in AI workplace transformation may not pay off if organizations do not manage it well.”

Is there another way?

4. How to balance ‘symbiotic’ technical and human skills

“Technical and human skills are symbiotic,” says Anthony Stephan, chief learning officer for Deloitte US. “Which is why leaders should take a ‘Yes AND’ approach – for the investments they make in tech skills, develop an equally exciting and critical human skill experience.”

Here are 3 concrete steps to focus on:

1. Provide training on AI. No one can predict exactly how the AI revolution will unfold, and conversations about the future can feel difficult when managers don’t know what to expect. But investing in employee development is a great place to start. Employees want to upskill. Even if you won’t see immediate productivity gains, believe in the process of helping your people learn and grow. Plus, only a small part of the workforce is self-motivated early adopters. Most employees won’t feel comfortable with AI until leadership creates real space and guidance for experimenting. When done right, this will enhance productivity and engagement.

2. Provide training on EI. We’re in the midst of a global emotional recession. People are struggling. They don’t feel like they have the emotional skills they need to cope. Over 60% of employees feel emotionally detached at work, according to Gallup. This is both a human problem and a business problem. People who are exhausted and going through the motions don’t have the energy they need to experiment with a new technology, even if it makes sense or is the obvious right solution from a business perspective. Change is hard. It takes more brain power. And when people have the emotional skills to cope with life’s stressors, including change, it’s more successful. “Organizations that overemphasize technical training at the expense of enduring human capabilities — like divergent thinking, emotional agility, and resilience — could end up impeding innovation and leaving employees ill-equipped to lead teams, adapt to market opportunities, and fully harness the potential of technology,” Stephan adds.

3. Model high EI when it’s hardest. In the race to harness artificial intelligence (AI), leaders must model emotional intelligence (EI) to navigate the complexities of this rapidly evolving technology. As AI reshapes industries and workflows, it’s not just about technical expertise but also about understanding and managing human emotions, building trust, and fostering collaboration. Leaders with strong EI are better equipped to address the concerns and uncertainties that often accompany technological change, ensuring that teams feel heard, valued, and supported. It’s hardest to practice emotional intelligence in times of change and upheaval, but that’s also when it’s most important. Invest in your leaders’ EI, and the multiyear AI rollout will be far more successful.