In 2025, leadership is changing in two main ways, writes Brian Eagar, CEO of Towerstone.
The first is through human-centred leadership. This style has come about after many years of leadership that focused on authority, hierarchy and top-down control, often ignoring people’s wellbeing and personal needs to pursue productivity and profit. Human-centred leadership flips the script and puts the needs, well-being and growth of individuals before tasks or profit. It values empathy, listening carefully and creating a supportive place where people feel respected.
More and more organisations are choosing to operate this way, recognising the benefits of human-centred leadership to boost employee engagement and belonging, resulting in a marked improvement in productivity, innovation and ultimately business performance.
The second way leadership is being shaped in 2025 is by the rise of AI. While AI’s promise of efficiency is exciting, relying too much on technology can hurt the goals of human-centred leadership. The focus on efficiency, innovation and growth can shift attention back to tasks and results, often ignoring people’s well-being.
According to a CNBC SurveyMonkey Workforce survey, 60% of employees who use AI reported that they worry about its impact on their jobs. Insights from the Harvard Business Review also found that, in addition to concerns about AI’s impact, motivation dropped by 11% and boredom increased by 20% when using AI in the workplace.
As concerns about job security and uncertainty grow, leaders need to act now. Success will come from leading with both people and technology in mind, with clear understanding and care. This means recognising the power of AI but also being aware of its hidden effects.
The promises and reality of AI
AI offers great benefits. It can take over routine tasks, help us make better decisions and let teams do more important work. From smart assistants that organise schedules and messages, to systems that give fast data insights, AI aims to make work easier and people more productive.
By automating simple tasks, AI can reduce the time and energy employees spend on admin work. This should let people spend more time on creative thinking, solving problems and working closely with others. Leaders are told AI will boost human ability by handling boring tasks and helping us think and work better.
In this view, AI does not replace people. It helps them. It is like a teammate, coach or tool that makes work smoother and opens up opportunities for new ideas and growth. But this is only part of the story.
Even though AI has benefits, it also causes some hidden problems. Its advantages come with challenges that can negatively impact job difficulty, create stress and reduce how much control employees and teams have over decisions that are based on AI outputs.
According to the Deloitte 2025 Human Capital Report, while AI is often praised for improving productivity and easing workloads, its impact on employees reveals significant hidden challenges. Seventy-seven percent of workers report that AI has increased their workloads and 61% fear it contributes to higher burnout rates.
Although AI automates up to 45% of routine tasks, employees are left with more complex and mentally demanding work, making their jobs harder rather than easier.
Additionally, 33% of workers report reduced human interaction and collaboration due to AI and 28% feel a loss of personal connection. This shows how AI can make workers feel isolated and lonely.
Deloitte emphasises that these effects are often unintended and overlooked by leaders who focus on AI’s efficiency gains. This can erode trust and weaken the employee-employer relationship if not addressed proactively.
Leading with both heart and AI
With this type of study data available, it’s obvious that leaders will have to find the right balance between utilising AI and implementing human-centred leadership styles. Here are three simple ways to do this:
* Understand the trade-offs. Good leaders know that while AI can boost productivity, it can also create problems. Automating work can increase workloads and lead to burnout and letting AI make too many decisions can make workers feel less in control. Also, replacing human interaction with technology can lead to isolation. Leaders must recognise these risks and respond with care and responsibility, always putting employees’ best interests first. This includes intentionally creating an environment where people feel safe to speak up, share concerns and know that their well-being matters; not allowing the grind to take over but instead checking in regularly and creating space for genuine connection. When people feel psychologically safe and know their voices are heard, a sense of belonging grows, even in times of change and especially when that change is introduced through the use of AI.
* Work with employees to adopt AI. Instead of forcing AI on workers, organisations should involve them in deciding how and when it is used. This collaborative approach leads to better and more meaningful use of AI, builds trust and gives employees a greater sense of control. When people help shape the tools they use, they feel more ownership and confidence in their work. They feel their input is valued and respected and this, in turn, supports a stronger sense of belonging, because workers feel included in important decisions that affect their roles.
* Reinforce the human core of work: As the use of technology grows, the risk of loneliness and disconnection increases. Leaders should respond by investing in human connection through mentoring and opportunities for collaboration around shared goals. This creates space for forging genuine relationships, teamwork and emotional support. A strong team is built not just on tools but on trust, care and shared purpose.
In 2025, strong leadership means balancing the power of AI and technology with a deep commitment to people. While technology can drive progress, it must not come at the cost of well-being, connection or control. Human-centred leadership reminds us that when people come first, business benefits through stronger performance and better results.
Generative AI is positioned as a tool to augment human skills, not replace them. Leveraging human creativity, empathy and contextual judgment to guide AI applications responsibly is key.
Leaders who involve employees, use AI thoughtfully and invest in building a sense of belonging will build teams that are not only more resilient but also ready to thrive – alongside technology.