The workplace is undergoing a significant transformation. With the adoption of Artificial Intelligence (AI) agents expected to increase by 327% over the next two years, and Gartner forecasting that 15% of daily work decisions will be automated by 2028, the very nature of leadership is being redefined.

But as the world shifts rapidly, agentic AI is not just a tool; it’s a collaborative partner. These systems are reshaping core business functions, from how we communicate to analyse data and make decisions. As AI systems match or surpass human performance in certain areas, the tasks where AI falls short become even more important. This means that tasks that require empathy, ethical judgement and nuanced understanding are becoming more critical than ever. Leena Rinne, VP of Leadership, Business and Coaching Solutions at Skillsoft, provides SMETodays readers with some insights.

According to the World Economic Forum’s 2025 Future of Jobs Report, leadership remains one of the most critical skills for the workforce to develop. This is not only due to the increasing complexity of work, but also because the rise of AI demands a new kind of leader who can navigate both technological and human challenges.

To lead effectively in this new landscape, today’s leaders must be agile and forward-thinking. They must be prepared to adapt to technological shifts while guiding their teams through uncertainty and change. This means developing a new set of leadership capabilities that blend the best of human and machine intelligence. But what does this look like in practice, and how can organisations begin to make this a reality?

 How humans and agentic AI can lead together

Agentic AI should not be viewed as a replacement for human leadership but a tool leaders can work alongside. When implemented effectively, the technology can automate routine tasks, analyse large volumes of data in real-time and provide personalised feedback that can help leaders act more quickly and strategically. This allows them to redirect their focus towards high-impact responsibilities, like relationship-building, team development and navigating complex change.

However, working alongside agentic AI requires more than just adopting new technologies. Leaders must ensure AI is used ethically, transparently and in alignment with organisational values. While AI can improve efficiency, human elements such as trust, empathy and culture-building remain central to effective leadership.

To lead alongside agentic AI, leaders must develop digital fluency. This includes understanding how AI systems work, critically interpreting their outputs and applying insights with emotional intelligence. At the same time, they must continue to strengthen the irreplaceable qualities of human leaders to create a more resilient, responsive and people-focused organisation.

The rise of power skills

As organisations recognise that their only true competitive advantage lies in their people and how they lead, there’s a growing emphasis on developing ‘power skills’. These are the human qualities that build connection, collaboration and resilience.

While many leaders already possess strong technical skills, the real differentiator today is whether they have the power skills to inspire, motivate and lead teams effectively. Employers are now prioritising individuals who are adaptable, can solve problems creatively, communicate with clarity and collaborate across diverse teams

Some of the most critical power skills for today’s leaders include:

• Effective communication: enabling collaboration across platforms and roles by delivering clear messages, actively listening and responding to feedback.
• Problem-solving: helping teams navigate complexity, maintain focus and drive sustained success by quickly identifying and resolving challenges.
• Adaptability: equipping individuals and teams to respond effectively to change, stay motivated under pressure and recover from setbacks.
• Critical thinking: supporting strategic decision-making through thoughtful analysis, informed judgement and accountability.

These skills are not intuitive or easily mastered; they must be practised, refined and continuously developed over time. That’s why investing in leadership development is no longer optional; it’s imperative.

Creating a culture of continuous learning

To thrive in the age of agentic AI, leaders must build a culture of continuous learning and development for both themselves and their teams. This involves prioritising reskilling and upskilling to meet evolving demands, while also committing to the structured development of human-centric capabilities, like communication, adaptability and ethical judgement.

One of the most effective ways to build these capabilities is through realistic workforce scenario-based learning. These experiences allow leaders and teams to practice critical power skills in a safe and supportive environment, helping them to build confidence and apply insights in real-world contexts.

Preparing leaders for the agentic AI era

As agentic AI becomes a foundational part of the workplace, the future of leadership depends on our ability to blend technical expertise with deeply human capabilities. Leaders must be equipped not only to understand and use agentic AI, but to lead with empathy, integrity and emotional intelligence.

While agentic AI can enhance decision-making and efficiency, it cannot replace the human element required to build trust, inspire teams and navigate interpersonal dynamics. Power skills, such as communication, adaptability, creativity and ethical judgement, remain essential in this new era. These are not skills that can be automated; they must be intentionally developed and continuously practised. By investing in leadership development, organisations can create leaders who are not only prepared for the future but capable of shaping it with confidence, compassion and clarity.

Leena Rinne, VP of Leadership, Business and Coaching Solutions at Skillsoft