Is AI now substituting for leadership?

New report finds managers are using AI to deal with 'uncomfortable interactions'

Is AI now substituting for leadership?

One in two Australian managers are now using artificial intelligence (AI) tools for at least one sensitive management task, drawing a warning on how AI should be used in leadership roles.

A new report from Dynamic Leadership Programs Australia (DLPA) found that senior leaders and managers are driving AI use in workplaces across the country by utilising the technology at a higher rate for everyday tasks than individual team members.

However, the report noted concerning findings on AI use among leaders, some of whom said they use the technology for:

  • Performance reviews (22%)
  • Responding to complaints (19%)
  • Difficult conversations (19%)
  • Delivering difficult feedback (18%)
  • Managing conflict (15%)

Karlie Cremin, CEO of DLPA and Crestcom ANZ, warned that using AI for sensitive management tasks risks eroding the human skills needed for leadership roles.

"AI can be a highly valuable tool to help managers prepare, structure their thinking, and check their tone. However, we risk weakening the very human skills effective leadership requires if technology is increasingly used to outsource uncomfortable interactions," Cremin said.

She underscored that difficult conversations are a part of leadership, and AI should only be used to prepare managers for these interactions.

"It cannot assume the responsibility for actually leading it," Cremin said. "When managers avoid these moments, performance problems, conflict, and distrust compound."

Separate findings from global research have shown that AI is already being blamed for eroding writing skills and creativity, as workers admit that they are becoming too dependent on the technology.

Cremin said their findings raise the question of where AI assistance should end and where human accountability should take over.

"While AI is an excellent supporting tool, organisations must clearly distinguish between AI supporting leadership and AI substituting for leadership," Cremin said.

Employees don't want AI as managers

The findings also come in the wake of workers' rejection of AI tools as their managers.

A previous global poll from Workday found that only 30% of employees feel comfortable being managed by AI agents, despite 75% being okay with collaborating with the technology.

In Australia, DLPA's findings show that 84% of the Australian workforce would also rather be managed by a person than AI, while 35% said they would be uncomfortable if they learned that AI wrote their performance review.

Employers need to establish clear guardrails on AI use, where the technology is delegated to a supporting role, according to Cremin.

"Organisations need to train managers to use AI as a tool for preparation only, ensuring they remain personally accountable for decisions that affect their teams," Cremin said.

"The ultimate goal of using AI in the workplace must be to make leaders better prepared for human conversations, ensuring human empathy, judgement, and accountability remain firmly in the driver's seat."

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