AI for Leadership Training: The New Paradigm Transforming Leadership Development

Humancore Team
|
June 18, 2025
Manager and colleague looking at a computer

Today’s leaders are in crisis. Squeezed by expanding responsibilities, diminishing resources, and relentless performance demands, traditional leadership training approaches have failed to meet the moment. Leveraging AI for leadership training is emerging as a revolutionary solution, offering personalized, contextual support that bridges the gap between theory and practice while dramatically reducing the time investment required for effective leadership development.

The Leadership Crisis

Companies are actively reducing their middle management positions, with US employers advertising 42% fewer middle management roles at the end of 2024 than in spring 2022. Gartner predicts that through 2026, 20% of organizations will use AI to flatten their organizational structure, eliminating more than half of current middle management positions.

Those who remain in management roles face significant challenges:

Team leaders have endured the pandemic's upheaval, workplace fluctuations between remote and in-office work, and are tasked with addressing low morale while juggling mounting responsibilities, especially as recurring layoffs thin their ranks. Research indicates that managers are more likely than non-managers to be disengaged, burnt out, and actively job hunting. Despite the increased importance of effective managers, the resources available to them have produced only modest improvements, if any.

The Limitations of Traditional Leadership Development

Traditional leadership training approaches suffer from several critical limitations:

Corporate training platforms centered around Learning Management Systems (LMS), workshops, and educational content have long been the backbone of L&D teams' ambitions. Yet, despite widespread adoption of these systems, a recent Harvard Business Review study reveals that 70% of leaders need to master a wider range of effective leadership behaviors to meet current and future business needs.

These approaches are temporally and physically removed from the day-to-day situations managers face when trying to inspire and motivate their teams. 

Professional coaching also faces challenges:

Coaching is fundamentally "a process of guidance over recommendations" focused on "creating space for the client's wisdom to emerge," rather than offering solutions to issues managers face daily. While valuable for long-term development, it doesn't serve managers looking for immediate, practical solutions to pressing challenges.

AI: The New Paradigm in Leadership Development

AI is transforming leadership training by providing contextualized, personalized support exactly when managers need it.

Too often, when people hear about AI for leadership training, they assume it means faster ways to make more content—videos, decks, courses. Josh Bersin and others have popularized the idea that this is the future of L&D: more scalable content creation using generative AI. But that’s missing the point entirely. These legacy modalities, such as watching videos and attending workshops, are exactly what today’s leaders don’t have time for, and aren’t engaging with in the first place. Even if AI makes the content slightly more tailored, it doesn’t solve the real challenge: the time crunch. Leaders don’t need more content. They need smarter, more personalized support in the flow of their actual work.

For manager performance and development, the opportunity and new reality is even more compelling than scholars envisioned. Artificial intelligence specifically designed to support managers combines accessibility with the latest organizational psychology expertise, offering relevant, research-backed advice–instantly and securely.

The most effective AI leadership solutions incorporate several crucial elements:

  1. Personalization: Every manager brings a unique combination of experiences, capabilities, and personality traits to their role. Effective AI leadership tools incorporate this understanding, ensuring advice is personally meaningful.
  2. Contextualization: Enterprise organizations spend countless hours developing policies, procedures, and expectations that make the company uniquely successful. AI for leadership training should embed this knowledge into its foundation, to make advice relevant for managers’ here-and-now.
  3. Expert Design: Credible manager development technology must incorporate organizational psychology research. Using Retrieval Augmented Generation (RAG), effective AI leverages scientifically-validated insights on leadership, prioritizing this expertise over generic internet content.
  4. Immediate Application: With the pace of change accelerating, managers need to solve problems now. Unlike traditional L&D programs and coaching approaches, manager-specialized AI delivers specific, actionable advice for immediate challenges.

How AI Transforms Leadership Performance and Growth

AI can offer managers real-time performance insights to help them become better at inspiring and motivating their teams, including providing guidance to improve employee engagement, collaboration effectiveness, and alignment with organizational vision.

AI also helps leaders envision and communicate strategic direction: 

Team leaders can leverage AI honed with employee- and company-specific context to create tailored, meaningful team objectives and plans to achieve their ambitions. Real-time guidance can help them grow their communication abilities, helping them guide their own teams more effectively.

AI can even aid strategic decision-making. Organizations whose leaders leverage purpose-built AI for leadership training can expect them to make more academically-sound decisions, leveraging their individual leadership styles and aspirations to guide them toward implementable strategies that make sense for their teams.

Empowering Leaders with AI Capabilities

To successfully implement AI for leadership training, organizations should focus on comprehensive AI education and enablement:

  • Develop AI fluency programs: Create leadership-specific training that demonstrates how AI can enhance their visionary thinking, strategic communication, and team inspiration—not just operational efficiency.
  • Establish AI champions: Identify early adopters who can showcase how they leverage AI to improve their leadership capabilities and mentor others in effective adoption.
  • Create guided application opportunities: Develop structured scenarios where leaders can safely practice using AI to address complex leadership challenges like communicating difficult strategic shifts or inspiring teams through uncertainty.

AI as the Leadership Multiplier

The role of the leader is inevitably changing. The decision before us is how to best reinvent leadership to help organizations and workers embrace change and thrive. It starts with recognizing the importance of fundamental leadership capabilities, such as vision, inspiration, and strategic thinking, and ensuring they're embedded in the organization's DNA.

Leveraging AI for leadership training represents a breakthrough that combines the personalized approach of coaching with technological accessibility and scalability. By providing contextual, in-the-moment support while dramatically reducing time investment, AI is transforming how organizations develop their leaders—creating a new paradigm that meets the demands of today's complex business environment.

Ready to transform how your managers perform and grow? Humancore has created the first AI-powered advisor for managers. To learn more about how an AI-powered advisor can transform your organization's approach to manager development, contact us today at info@humancore.ai.

Join the Humancore community

Stay up to speed on the latest in manager development and AI with news from Humancore.