Not every organization needs an AI chatbot or a machine learning lab. But every leader does need “AI fluency” – a working understanding of the possibilities and limitations of this evolving technology.

Productivity or Pitfall?

There’s no shortage of claims that AI boosts productivity – and in many cases, that’s true. AI can automate repetitive tasks, generate insights from vast data sets, and reduce decision-making time through predictive modeling.

In fact, consultancy firm Gartner forecasts that by 2026, organizations that operationalize AI transparency, trust and security will see their AI models achieve a 50 percent improvement in adoption, business goals and user acceptance. (Ominously, they also predict widespread elimination of middle management positions.)

But here’s the catch: AI only enhances productivity when applied thoughtfully. Poorly implemented AI can actually make things worse. A number of studies have found that rushed automation efforts – like replacing human judgment with rigid AI outputs – often lead to longer workflows, increased errors, and lower employee satisfaction.

AI works best when it augments, not replaces, human effort. It’s a bit like having a second pilot in an airliner: it can handle the data, suggest routes, and help avoid turbulence – but you’re still in the cockpit, and still making the key decisions.

The difference between productivity and pitfall? Strategy. Leaders must align AI tools with clearly defined business challenges – not just adopt them to keep up with trends.

More Than Just a Tool? Embedding AI in Strategy

So, is AI just another piece of tech to slot into your operations? Or is it something bigger – something that should reshape how your organization thinks and acts?

Forward-thinking companies are already moving from isolated pilots to enterprise-wide AI strategies. Deloitte refers to this as “AI-fueled transformation,” where AI isn’t just a support tool, but a lens through which strategic decisions are made.

In this model, AI isn’t an add-on; it’s foundational. It’s used to redesign customer journeys, reimagine supply chains, and even rethink organizational structure.

Leaders who embed AI in the strategic core of their organizations are more agile, better informed, and quicker to seize opportunities.

And there’s already evidence that organizations embedding AI at this strategic level enjoy significant advantages over those who just use it as a surface-level productivity tool.

The key thing to remember is that this isn’t about replacing people with machines. It’s about empowering people – with data, speed and insights – to lead better.

Red Flags and Responsible Use

No conversation about AI would be complete without acknowledging its risks and downsides. For all its potential, AI comes with serious red flags.

First, AI can introduce or amplify bias if the data it’s trained on is flawed – a recurring issue across sectors from finance to hiring.

Second, transparency and explainability remain challenges: if your team doesn’t understand how an algorithm made a recommendation, can they really trust it?

Then there’s the environmental impact. Training large-scale AI models consumes staggering amounts of energy. Research has shown that training one large language model could emit as much carbon as five cars over their entire lifetime.

And there are hundreds, maybe thousands of models – in use and development. It’s a sobering reminder that innovation must also be sustainable.

Finally, it’s pretty clear that the technology is evolving faster than governance frameworks. As a leader, it’s not just your job to explore the upside; it’s your responsibility to ask the hard questions. Are we using AI ethically? Are we making decisions we can defend?

What Capabilities Do Leaders Need Now?

Let’s be clear: you don’t need to code. But you do need to be curious. You need to understand enough about AI to ask the right questions, challenge assumptions, and make informed decisions.

Leaders in an AI world will need a range of capabilities such as:

• digital and data literacy
• empathy and communication (especially as humans work alongside AI)
• strategic thinking to evaluate where AI adds value – and where it doesn’t.

Above all, AI leadership is about mindset. It's not about being the smartest person in the room – it’s about being open to change, grounded in purpose, and unafraid to challenge the hype.

Don’t Just Implement: Lead

AI isn’t a strategy. It’s a tool, one that’s only as useful as the hands that wield it.

The most effective leaders won’t chase every shiny new AI app. They’ll focus on outcomes. They’ll identify where AI can meaningfully drive growth or solve persistent problems. And they’ll invest in their people as much as their platforms.

If you’re not sure where to start, start small. Experiment, learn, reflect. Use AI to free up time for more human work – like mentoring, creative problem solving, and innovation.

Above all, don’t just adopt AI. Lead with it.

What’s Next?

The AI landscape is evolving all the time, and it can be hard to keep up. So, why not ask an expert what’s going on? Our recent podcast guest, Dr Anna Barnett, is exactly that, and she can tell you where AI is now.

If you need an AI 101 for leaders, try our article What Every Leader Needs to Know About AI. If your main interest is how your teams are going to use AI to do their best work, take a look at How Managers Can Use AI to Boost Productivity.

And if you’re looking for something a bit more big-picture, check out How Leaders Can Use AI to Drive Growth and Innovation.

Tip of the Week

Getting in the Zone

By Kevin Dunne, Mindtools Content Editor and Writer

In a world that makes it its business to tempt us, distract us, persuade or dissuade us, it’s no wonder most of us have trouble focusing on what we need to be doing.

When we do get around it, we feel so much better and wonder why we put ourselves through all that procrastinating!

So here’s a quick guide to getting your focus on:

• Make a to-do list, that pillar of time management.
• Do the quick things first.
• Dedicate time in your calendar for jobs you need to focus on.
• Shut yourself away from distractions.
• Stay calm – stress is bad for focus.
• Understand the task – a sense of purpose will keep you in the zone.
• Break big jobs into small tasks.
• Give yourself rewards when you tick off a task – not a Caribbean vacation but maybe a cookie.
• Make yourself comfortable.
• Practice mindfulness and stay in the moment.
• Turn off distractions – and that means you, little cell phone buddy.

For a fuller exploration of this topic, see our article Top Tips for Staying Focused.

Pain Points Podcast

This week's podcast is full of F-words: fraught, fractious, frustrating, frantic... because it's about the challenges of families, and the fight for work/life balance.

Lauren Ezzell should be able to help. She works for a tech company that's determined to improve the lot of working parents, and she talks to Jonathan Hancock about the best ways to organize your family, find time for the things that matter, have fun at home – and still flourish at work.

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Video of the Week

Introverted Leaders With Karolina Szweda

Can you be a leader and an introvert?

According to leadership coach Karolina Szweda, yes you can! And more than that, it might even be your secret asset. Watch the full expert video on Mindtools now.

Watch Now

News Roundup

This Week's Global Workplace Insights

Forget the Hours, Smell the Flowers

Do you have a workaholic in your midst, and would you know how to spot them from a top performer?

In the wake of research revealing that a staggering 66 percent of American employees are suffering some degree of burnout, online workplace news portal WorkLife revealed the signs to watch out for.

They turned to Arizona State University life sciences professor Ramon Velazquez for the answers. His workaholic red flags included:

• The 24/7 email checker. Doing this on personal time signals an inability to disconnect.
• Relationship and self-care sacrifices. This is not commitment; it’s an unhealthy relationship with a job.
• Allergic to downtime. Strategic breaks and recovery periods are essential for sustained excellence.
• The perpetual “yes” person. Employees who can’t say “no” to work, regardless of their workload, often mask insecurity with busy-ness.

As Velazquez put it, “It isn’t about the hours put in, but how effectively those hours are spent.”

For expert guidance on beating burnout, see our new video with organizational culture specialist, Sharon Aneja.

Reach Out, Coworking Spaces Will Be There

Coworking spaces aren’t everyone’s cup of tea. Lack of privacy, the noise and distraction of your neighbor’s Teams call, and the security worries over using shared networks are just three perceived drawbacks.

But some cutting-edge operations are offering a lifeline to those with caring responsibilities, reports online global news outlet The Conversation.

Citing a new EU initiative COWORCare, they reported on coworking spaces that now offer family support “such as kindergartens and elderly-care services.” That’s a boon to parents who may be struggling to work under the burden of one or both of those caring responsibilities.

Others, say The Conversation, also host “training sessions, workshops and networking events,” while Ireland’s “Connected Hubs” scheme has built a national network of remote-working hubs, to bring community and reliable online service to rural communities.

A welcome evolution for digital nomads and work-from-homers.

See you next week for more member-exclusive content and insight from the Mindtools team!