Leadership in the Age of AI: The Capabilities That Matter

Every leadership appointment is a bet on how a person will perform in conditions that do not yet exist. As AI changes how work is organised, the conditions new leaders will face are changing faster than most selection processes.

Amplification, not just automation

In September 2026 Gartner identified four shifts shaping the future of work. Its central message was that the greatest mistake of the early AI era would be treating automation as the point, when workforce amplification is the opportunity. Gartner predicts that by 2029, 30% of employees laid off due to replacement by AI will need to be rehired, often at a significantly higher cost, and warns that cutting too deep and too soon can deplete talent pipelines and institutional knowledge.

Gartner's analysis is directed primarily at CIOs and business executives. Our interpretation is that it has direct consequences for how organisations should assess leadership candidates in every function.

The capabilities that matter

In our view, several capabilities are becoming more important. Judgement: the ability to decide when to rely on AI and when not to, and to take accountability for the result. Adaptability: comfort with redesigning roles, processes and team structures as tools change. Change leadership: bringing people through significant change without losing capability or trust. And talent stewardship: protecting and developing the knowledge and skills an organisation will need later, rather than optimising only for short-term savings.

Assessing executive capability

These qualities are difficult to identify from a career history alone. Effective leadership assessment should explore how candidates have handled real decisions involving technology and change — what they weighed, what they got wrong and what they learnt. Scenario-based interviews, conversations with stakeholders who worked alongside them and thorough reference checking against specific capabilities provide far stronger evidence than a list of achievements.

Defining the role first

Before a search begins, organisations should be clear about what they need the leader to do over the next three to five years, including how AI is expected to change the function. A brief that describes only the role as it exists today risks appointing someone well suited to the past.

The takeaway

The leaders who will create the most value are those who use AI to strengthen their people and their organisation. Leadership recruitment should be designed to find them.