AI and ethical leadership

AI is transforming workplaces, threatening entry-level roles and talent pipelines. Neil Hughes outlines how leaders can manage disruptions ethically, balancing innovation and inclusion

A robot arms holds up a justice scale

Artificial intelligence (AI) is rapidly transforming our workplaces. News articles and reports frequently highlight stories of AI replacing entry-level and office jobs, especially those roles focused heavily on data processing and analysis.

As such, professionals in these fields may feel particularly vulnerable.

The question facing senior leaders should no longer be ‘when’ AI will disrupt the status quo, but rather how to manage the inevitable disruption in both a human and a strategic way.

Risks to early-career professionals

This wave of change has implications, especially for early-career professionals. Entry-level positions are vital to organisational succession planning, diverse thinking and social mobility—yet they are at the greatest risk.

AI brings undeniable benefits, including productivity gains, faster decision-making and cost efficiencies, but the speed of change has the potential to outpace organisational strategies and workforce preparedness. Risks include:

  • The displacement of junior roles in favour of cost-saving AI tools that can deplete talent pipelines and increase graduate unemployment;
  • A lack of understanding of AI use and transparency that may erode trust and confidence; and
  • Bias in AI systems, with tools used in recruitment and promotion being shown to replicate, or even amplify, existing inequalities.

Ethical AI adoption

The European Union’s AI Act places a stronger emphasis on human oversight, transparency and risk classification, especially where AI impacts people in an employment context.

Human Resources (HR) is well placed to lead ethical AI adoption and challenge leadership decision-making.

HR not only needs to balance the benefits of the technology but also mitigate the risks by embedding fairness, inclusion and human-centricity at every stage of the transformation process.

To respond effectively, leaders need to move beyond compliance to become architects of AI-enabled workforce strategies.

HR should work to redefine entry-level roles and upskill staff who understand, monitor and augment AI tools.

AI literacy should be incorporated into graduate programmes and graduate positions, enhanced with placements that increase cross-functional literacy.

HR can also conduct AI-readiness audits to understand existing skill and confidence gaps and identify opportunities for AI to build a future-ready workforce.

Leading AI change with transparency and empathy

Embedding ethical oversight, HR must continue to play a leading role in ensuring oversight of AI systems and tools, particularly where AI is used in decision-making, such as hiring, promotion or performance reviews.

Leading with transparency and empathy, leaders can also create engagement loops and develop communication strategies to ensure employees have a voice in decision-making and managers are equipped to discuss the benefits and boundaries of AI tools.

Listening at scale provides an opportunity to integrate pulse surveys and forums to gauge employees’ perceptions of AI and automation, mitigating fear and building trust.

Human and AI collaboration

While AI offers many benefits, it will never replace the essential role of people. Instead, it will increase the demand for adaptability, creativity and emotional intelligence.

Integrating AI is not just a challenge for IT; it also represents a transformation for people within organisations. Leaders must lead this change in a human and strategic manner.

Neil Hughes is Director of People and Change at Grant Thornton