Unlock Growth: M&A Opportunities for Mid-Market Companies in 2026

Navigating Disruption: Seven Key Questions Leaders Must Ask

Update In Times of Disruption, Asking the Right Questions Matters As the velocity of change accelerates, particularly in the realm of artificial intelligence (AI), corporate leaders find themselves facing a crisis of trust. A recent study reveals that two-thirds of employees trust AI more than their own leadership, posing a significant challenge for those at the helm. According to research from the FranklinCovey Institute, only 42% of employees view their leaders as trusted, indicating that the disparity between technology and leadership trust is growing. This calls for a crucial introspection: how can leaders steer their organizations through turbulent times while rebuilding trust amongst their teams? Contextualizing the Crisis of Trust AI's rapid growth is not just about algorithms taking over tasks; it’s also about how leaders manage the feelings and apprehensions of their teams regarding these changes. Employees often perceive transformation—like the introduction of AI—as a loss, not a gain. With 70% of workers feeling that technology outpaces cultural adaptation within their companies, it’s vital that leaders acknowledge this sentiment openly. Asking, "How do my team members feel about AI invading their roles?" is a critical starting point for engaging with employees and mitigating fear. What Leadership Must Address In an era where employees fear they might be replaced by AI, the primary question is whether their leaders exhibit emotional intelligence. As articulated by global consulting firms like Korn Ferry, while AI skills dominate conversations about the future, emotional intelligence (EQ) remains pivotal. Leaders must foster a workplace within which team members feel safe to express their concerns about AI’s implications on their job security. Additionally, the notion that leadership should focus solely on technical skills is somewhat misleading. As the World Economic Forum emphasizes, it’s the culture that amplifies change, including AI integration. If organizations haven’t built trust in leadership roles prior to deploying advanced technologies, they risk creating an environment rife with uncertainty and resistance. The Role of Emotional Intelligence in Trust-Building As organizations navigate this digital transformation, leaders' emotional presence has never been more necessary. Employees are asking whether they can trust their leadership to guide them through these uncertainties. Demonstrating self-awareness, empathy, and strong relationship skills is imperative to build and maintain that trust. According to Harvard Business Review, 90% of top performers exhibit high EQ, highlighting its importance in effective leadership. Fostering genuine connections and ensuring an atmosphere of psychological safety can significantly enhance engagement levels among teams. Strategies such as hosting open forums for discussion, emphasizing transparency in decisions regarding AI, and engaging in active listening can help bridge gaps that often lead to distrust. Moving Beyond Automation to Augmentation To successfully implement AI, leaders must navigate the complex emotions surrounding job security. Are employees being replaced, or is AI redefined as a collaborative tool? How leaders answer these questions helps to frame the narrative around AI implementation. Positioning AI not as a job threat, but as a digital teammate can bridge gaps in trust and reduce anxiety. Furthermore, organizations need robust training programs that empower employees rather than leaving them in the dark. The BetterUp study shows that without a clear understanding of how these systems work, fear and insecurity can proliferate. Thus, investing not only in AI technologies but also in employee education and resources becomes essential to mitigate these anxieties. Embracing the J-Curve of Transition Every significant transformation, including AI deployment, will initially disrupt productivity—a phenomenon often described as the 'J-curve'. Leaders must recognize this transition period as a normal response to change and not respond with rash pressures for immediate results. Instead, fostering a supportive environment during this crucial stage is key to maintaining trust and encouraging innovation. Leaders can ease employee transition by openly acknowledging productivity declines and celebrating small wins as teams adapt to new systems. Allowing for mistakes and emphasizing a collective learning approach not only nurtures resilience but also lays the groundwork for a sustainable culture of innovation. Conclusion: Leading with Trust in the Age of AI Recognizing that trust is integral to successful leadership, particularly in times of disruption, can transform how leaders engage with their teams. As AI technologies evolve, so too must the emotional competencies of leaders who guide their organizations. By prioritizing the cultivation of trust alongside technical implementation, organizations can navigate the storm of disruption with integrity and foster an environment where employees thrive, not just survive.