WHY LEADERSHIP MUST EVOLVE TO THRIVE IN AN AI DRIVEN WORLD

By Sanjay Raghunath, Chairman and Managing Director of Centena Group

Leadership today is being reshaped not by technology alone, but by the pace at which the world around us is changing. Conventional leadership models built on rigid hierarchies, authority, and control are no longer sufficient in an era defined by artificial intelligence, automation, and constant disruption. What organisations need now is a more human-centric model, adaptive, and grounded form of leadership.

As digital transformation accelerates, the role of a leader has fundamentally shifted from imposing authority. Leadership is no longer about issuing directions from the top; it is about guiding organisations and people through uncertainty with clarity and confidence. In an AI-driven world, effectiveness does not come from being the most technical person in the room, but from understanding how technology reshapes industries and how to integrate it responsibly to create long-term value.

The economic impact of AI is already undeniable. Reports suggest that AI could contribute up to USD 320 billion to the Middle East’s GDP by 2030, with the UAE alone expected to see an impact of nearly 14 per cent of GDPby that time. Globally,PwC estimates that AI adoption could increase global GDP by up to 15 per cent by 2035. These numbers signal more than opportunity, they signal inevitability. Leaders who cling to static models and resist change risk being overtaken as industries evolve around them.

One of the most persistent challenges in leadership today is resistance to change. When leaders rely on outdated hierarchies and familiar ways of working, organisations struggle to respond to volatility. What worked yesterday may no longer work tomorrow. Flexibility, once considered a desirable trait, has become a necessity for survival. Ignoring change is no longer an option.

At the same time, expectations of our colleagues have shifted significantly. People today seek more than compensation or career progression. They are looking for purpose, belonging, and leaders who communicate with transparency rather than authority. This shift is reinforced by the 2025 Employee Experience Trends Report, which draws on feedback from 169,000 employees. The findings show that belonging and purpose are now among the strongest drivers of engagement, while AI-related anxiety and change fatigue are growing concerns within the workforce.

These factors highlight the role of authentic human connection in leadership. One of the critical elements in this regard is emotional intelligence (EQ), which enables leaders to build trust, inspire confidence and form meaningful relationships with their teams. While data, analytics, and AI can inform better decisions, it is empathy that sustains relationships and credibility. Leaders who lack emotional awareness often appear distant, making trust difficult to establish and sustain.

In an era of advanced technologies such as AI, automation and chatbots, there is a prevailing fear about technology overtaking the human role. It is the leadership’s responsibility to instil confidence in people that technologies are designed to enhance human capability, not to diminish it. Technology must be positioned as an enabler. Even though the pace of this transformation can be exhausting, leaders must navigate this challenge with renewed energy and a clear strategy to guide their organisations.

Today, leadership that is adaptable, collaborative, and emotionally aware is proving far more effective than traditional command-and-control models. The transition is from exercising authority to creating genuine connections. Strong leaders integrate change into their strategies while keeping people at the centre of their organisations, while viewing technological innovations as a partner rather than a threat.

Investing in people is not optional, as roles continue to evolve and skill requirements change.  Our colleagues must feel valued and supported, as recognition and empathy contribute to boosting engagement and innovation. Empathic leadership helps bridge the gap between market demands and individual needs. Listening with intent, understanding context and responding with genuine concern are no longer additional qualities, they are essential leadership competencies.

The future belongs to leaders who blend clear thinking with empathy, who remain grounded in the present while envisioning bold possibilities and driving innovation forward without eroding trust. In this AI-driven age, success depends on how leaders balance innovation with trust. Leadership is neither about resisting change nor surrendering to it entirely. It is the ability to guide people through uncertainty with emotional depth and stability, recognising that true authority is not earned through control, but through the strength of human connection.