Why Soft Skills Still Rule the C-Suite in the Age of AI

January 7, 2025 – In an era dominated by technological advancements and artificial intelligence, it might be tempting to believe that machines can replace human leadership. However, the essence of effective leadership lies in a unique blend of soft skills that transcend AI’s capabilities, according to a new report from Kestria.

“While technical expertise is undoubtedly necessary, it is often the softer skills that distinguish exceptional leaders,” the Kestria report said. “Soft skills like empathy, communication and emotional intelligence are the bedrock of successful leadership. These interpersonal qualities enable leaders to navigate complex organizational challenges, build strong relationships and inspire their teams to achieve great things.”

In today’s fast-paced and interconnected world, the Kestria report explains that influential leaders must be able to:

• Build strong relationships: Cultivate trust and rapport with colleagues, clients and stakeholders.
• Communicate effectively: Convey ideas clearly and persuasively, both verbally and in writing.
• Resolve conflicts: Address disagreements and resolve conflicts diplomatically.
• Motivate and inspire others: Engage and inspire teams to achieve common goals.
• Adapt to change: Embrace change and lead through uncertainty.
• Make ethical decisions: Act with integrity and consider the impact of their decisions on others.

“By honing these soft skills, leaders can create a positive work environment, improve employee morale and drive business success,” the Kestria report said.

High-Level Soft Skills for C-Suite Leaders

The report also notes that while soft skills are often associated with interpersonal communication and teamwork, C-suite leaders require a more sophisticated set of soft skills to excel in their roles. Kestria lays out the following skills:

• Visionary leadership: The ability to articulate a compelling vision for the future and inspire others to follow
• Strategic thinking: The capacity to analyze complex problems, identify opportunities and develop innovative solutions.
• Stakeholder management: The skill of building and maintaining solid relationships with a diverse range of stakeholders, including employees, customers, investors and regulators.
• Negotiation and conflict resolution: The ability to resolve disputes, find common ground and achieve win-win outcomes.
• Change management: The capacity to lead organizational changes and adapt to evolving circumstances.

What Skills Do CEOs Need Today to Succeed

While the pandemic is in the rearview mirror, that doesn’t mean we aren’t experiencing challenging times. From economics to politics, and from cyber threats to artificial intelligence (AI), the world can be difficult to navigate—and so can the role of a CEO. A 2024 survey from The Conference Board showed that inflation and a possible recession are the leading concerns among CEOs worldwide. Meanwhile, AI is reshaping nearly every aspect of the workplace. All of this is occurring against a seemingly constant backdrop of conflict and global unrest, according to a new report from DHR Global’s Keith Giarman, Christine Greybe, Mike Magsig, and Heather Smith.

It’s a lot, to say the least. Some CEOs are built to rise to the occasion, but even they need an equally proficient and passionate leadership team around them, according to the DHR report. The firm provides a few qualities and factors that are critical for the success of today’s CEOs and other C-suite leaders, with insights from the firm’s executive recruiters and leadership consultants.

“While AI can be a tool for leaders, and certainly will be, it cannot replace the human qualities that define effective leadership,” said Carlos Eduardo Staut, CEO of Kestria Brazil. “Soft skills are deeply rooted in human-centric traits. They are not just supplementary, they are fundamental to leading teams, navigating complexities, understanding emotions, managing stakeholders’ complexity and fostering innovation. This symbiosis of human leadership and AI support will shape the future. Especially at the C-suite level, where people expect disruptive thinking and acting.”

Why AI Can’t Replace Human Leadership

Targets while AI has the potential to augment human capabilities, it cannot fully replicate the nuanced understanding of human behavior, empathy and intuition that are essential for effective leadership.

• Ethical decision-making: AI algorithms are trained on data and biases may influence their decisions in the data. On the other hand, human leaders can apply ethical principles and consider the broader societal impact of their choices.
• Complex problem-solving: AI excels at analyzing large datasets and identifying patterns. However, it struggles with complex problems that require creativity, critical thinking, and a deep understanding of human psychology.

Related: Leadership Traits That Matter in Times of Crisis

• Building relationships: Effective leadership requires strong interpersonal skills and building trust and rapport with others. While AI can facilitate communication, it cannot replace the human touch.
• Empathy and emotional intelligence: The ability to understand and respond to others’ emotions is crucial for building trust and fostering strong relationships.
• Creativity and innovation: Human leaders can think outside the box, generate new ideas and adapt to changing circumstances.
• Cultural nuance and interpersonal skills: Effective leadership requires navigating cultural differences, building rapport and inspiring diverse teams.

“In summary, while AI can assist with data analysis and task management, the intrinsic qualities of human leadership – empathy, emotional intelligence, communication and ethical decision-making – are irreplaceable,” said Katerina Meimaroglou, founder and managing director, Kestria Greece. “These soft skills enable leaders to connect with their teams and navigate complex interpersonal dynamics, which are essential for effective leadership.”

Developing Soft Skills in C-Suite Leaders

To cultivate these essential soft skills, C-suite leaders can benefit from a variety of development strategies. The Kestria report points out the following skills:

• Executive coaching: Personalized coaching can help leaders identify their strengths and weaknesses, develop new skills and build confidence.
• Mentorship and sponsorship: Mentorship programs can provide valuable guidance and support, while sponsorship can accelerate career advancement.
• Leadership development programs: Structured programs focusing on leadership skills, such as emotional intelligence, communication and strategic thinking.
• Experiential learning: Engaging in challenging projects and assignments can help leaders develop new skills and perspectives.
• Feedback and reflection: Regular feedback and reflection can help leaders identify areas for improvement and enhance their leadership capabilities.

“By investing in developing soft skills, C-suite leaders can position themselves to navigate the complexities of the modern business landscape and drive sustainable growth,” the Kestria report concluded.

Kestria, formerly known as IRC Global Executive Search Partners, has partners in over 40 countries and 90 cities across Europe, the Middle East, the Americas, Africa, Asia, and Australia. The consortium has completed more than 40,000 assignments for more than 4,000 clients, from game-changing start-ups to major global players.

Related: The Skills That Help CEOs Make the Right Choices

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media