[AI-generated audio article] With insights from UQ Business School and industry experts, this episode examines why the real risk of AI isn’t the technology itself, but leaders using it to dodge judgement, accountability and trust. The conversation covers what AI still can’t do, from ethical reasoning to psychological safety, and why human oversight remains essential.

To say AI

is advancing swiftly is an understatement.

2

From telehealth apps

using AI for patient triage to logistics

3

firms automating supply chains, Australian

organisations are embracing AI at pace.

4

Recent data from the Australian Bureau

of Statistics shows businesses

5

have more than doubled their investment

in AI, allocating more than $660 million

6

to AI research and development

7

Nowhere is this transformation

felt more keenly than in the workplace.

8

From streamlining operations

to redefining roles and reshaping

9

organisational structures,

AI is rewriting the rules of business.

10

But amid this technological revolution,

the real challenge for leaders

11

isn't simply keeping up: it's harnessing

AI's momentum

12

to build more adaptive,

human-centered cultures, not replace them.

13

As AI applications

automate routine tasks and influence key

14

business decisions,

the human dimensions of leadership –

15

empathy, creativity, and accountability

– become even more critical.

16

We asked UQ Business School experts

Professor Marta Indulska

17

and Associate Professor Chad Chiu,

plus UQ alum and industry expert

18

Dr Gayan Benedict, to share their insights

in a thought-provoking

19

Q&A about how to lead with humanity

in the age of AI.

20

Part one:

21

The technology perspective from Professor

Marta Indulska at UQ Business School.

22

With a background in computer science

and information systems,

23

Professor Indulska has long

24

been intrigued by the business impact

of emerging technologies.

25

She believes transparency, trust

and ethical judgement

26

are now essential additions

to every leader's AI toolkit.

27

We asked Professor Indulska

28

which

29

uniquely human

skills will remain essential for leaders

30

over the next 5 years as AI becomes

more integrated into the workplace.

31

And here's her response: Creativity

is an innate skill that AI won't replace.

32

While generative

AI output can seem impressive,

33

it's merely a synthesis of already

existing content.

34

As AI becomes more pervasive, leaders

35

need to foster innovative environments

where technologies like AI are applied

36

to generate the most value

and create a competitive advantage.

37

This means using AI to effectively augment

38

human creativity, not replace it.

39

Equally important

is the human ability for ethical judgment.

40

It will become imperative that leaders

establish clear ethical boundaries

41

and adequate oversight for the responsible

development and use of AI.

42

Relationship

building and communication skills

43

are crucial for leaders

as AI becomes widely adopted.

44

We've seen the consequences of unchecked

AI use play out in the media,

45

from consultants preparing reports

with AI-generated errors to newspapers

46

publishing AI-assisted reading lists

with books that didn't exist.

47

Instances like these highlight

a lack of transparency between contractual

48

partners, and a poor understanding

of how we might use AI to assist work.

49

Our next

50

question for Professor Indulska was:

how can leaders integrate

51

human-centred principles into the design

and deployment of AI systems?

52

She told us: leaders

who embed effective governance mechanisms

53

within an organisation

have the best chance

54

of ensuring responsible,

transparent and well-informed AI use.

55

This commitment means constantly

monitoring AI model performance,

56

ongoing human oversight,

and open conversations about AI use.

57

There's a critical need for higher levels

of AI literacy in the workplace, so

58

upskilling employees is a key priority.

59

Explainability and escalation

mechanisms are also crucial features.

60

AI systems should provide explanations

of how they came

61

to a particular recommendation,

and humans should have access

62

to escalation mechanisms

to adjust the AI output if needed.

63

Accountability is also essential.

64

When AI makes mistakes,

a human has to be held accountable.

65

Our final question for Professor

Indulska was: what practical steps

66

can leaders take to lead with humanity

in an increasingly automated world?

67

Here's what she said:

It's difficult to lead confidently

68

in the age of AI without

first understanding the technology.

69

A certain level of AI fluency is needed

70

to lead effectively in this new era.

71

Professor Indulska shared 3

practical tips for leaders.

72

Tip 1: dedicate time each week to learn.

73

Subscribe to podcasts, commit to a short

course, read a book, talk to your teams

74

and ask them to explain concepts

you don't understand.

75

Tip 2: never blindly trust an AI system.

76

The technology offers tremendous value,

but over reliance is dangerous.

77

Question the assumptions of the system,

the quality of the data it's trained

78

on, and the potential impacts

of any decisions.

79

Tip 3: model transparency

80

by being open about how you use

AI in your work and decisions.

81

This strategy will help you identify

any areas of personal discomfort regarding

82

responsible use, and encourage others

to be forthcoming about their AI use.

83

Part 2: the organisational leadership

perspective from Associate Professor Chad

84

Chiu at UQ Business School.

85

As a behavioral scientist specialising

in leadership and organisational

86

behaviour, humanity and humility

sit at the core of Dr Chiu’s work.

87

He believes these qualities are essential

for leaders to maintain a people-centred

88

focus as they integrate

AI into their organisations.

89

Our first question for Dr Chiu was:

looking ahead to the next 5 years,

90

which human capabilities

will remain vital for leaders

91

as AI becomes

more deeply embedded in the workplace?

92

Dr Chiu told us: by definition, leadership

is a social influence process through

93

which some individuals

(leaders) motivate and enable

94

others

(followers) to achieve a common goal.

95

We can't automate this human process.

96

Even as AI becomes

97

more integrated into workplaces, leaders

will still need uniquely human skills.

98

He identified 4 of these skills for us.

99

Number 1: sense making.

100

Interpreting complex and uncertain

environments and identifying what truly

101

matters. Number 2: empathic communication.

102

Articulating shared goals and aligning

diverse people behind them.

103

Number 3: relationship building.

104

Cultivating trust and inclusion

by building connections

105

beyond their supervised group

or their organisation.

106

Number 4: moral discernment.

107

Balancing efficiency and ethics

when technology may optimise for only one.

108

Dr Chiu

109

said these abilities

connect people to purpose,

110

which is something the existing algorithm

can hardly replicate.

111

We asked Dr Chiu: what cultural shifts

are essential for organisations

112

to lead responsibly and humanely

through AI-driven transformation?

113

He told us: we should use AI to amplify

human judgement and connection,

114

not as an excuse for organisations

to assign more direct reports to managers

115

and push people to their cognitive

or emotional limits.

116

The technology can process information,

but only humans can interpret

117

meaning,

build trust, and nurture commitment.

118

The challenge for modern organisations

is to ensure that AI frees leaders to lead

119

more thoughtfully, rather than becoming

faster administrators of larger teams.

120

To achieve this goal, organisations

could embrace a broader definition

121

of efficiency and performance,

one that recognises the importance

122

of relational quality, trust,

belonging, and psychological safety,

123

rather than solely focusing narrowly on

measurable outputs or financial returns.

124

Without this broader view, companies risk

falling into a bottom line mentality

125

where short-term productivity

126

gains come at the cost of long-term

engagement and innovation.

127

Leaders should be encouraged to question

and interpret technology,

128

exercising curiosity, moral judgement

and empathy in every decision.

129

Finally, we asked Dr Chiu:

what practical steps can leaders take at

130

an individual level to lead with humanity

in an increasingly automated world?

131

Dr Chiu’s answer was: for leaders

to embody the broader definition

132

of efficiency and performance,

they must value human connection, ethical

133

reflection, and sustainable

wellbeing alongside measurable results.

134

He identified 5 practical steps

for leaders to take.

135

Number 1: practise intentional humility.

136

Openly acknowledge

personal limitations, recognise

137

others' strengths, and demonstrate

a willingness to learn.

138

These behaviours

build trust and psychological safety,

139

which are essential foundations for teams

navigating rapid technological change.

140

Number 2: humanise your data.

141

Before acting on data-driven

recommendations, ask how each

142

algorithmic decision might affect

the people behind the numbers.

143

This approach

prevents overreliance on systems

144

that may unintentionally reinforce

bias or neglect human nuance.

145

Number

3: prioritise presence and relationships.

146

Use the time saved through automation

to strengthen interpersonal connections

147

through mentoring, coaching,

and informal check-ins.

148

Face-to-face contact is a powerful source

of trust and engagement.

149

Number 4: treat people as individuals,

not categories.

150

Take the time

151

to understand each person's unique

motivations, constraints and values.

152

Personalised leadership decisions

are more effective and equitable.

153

Number 5: invest

in self-care as a strategic resource.

154

Effective

155

leadership depends on sustained energy

and emotional balance.

156

Leaders who recharge themselves

157

are better able to make sound judgements,

model empathy and avoid burnout.

158

Part 3: the industry perspective

from Dr Gayan Benedict, partner at PwC

159

and Industry Research fellow at MIT’s

Center for Information Systems Research.

160

Dr Benedict is an experienced technology

leader and industry expert.

161

The UQ Bachelor of Commerce and Laws

alum is a partner at PwC, having held

162

senior leadership roles at the Reserve

Bank of Australia, Westpac and Salesforce.

163

Central to his focus

are the risks and opportunities of AI,

164

as well as the critical need

165

to keep “humans at the helm”

to ensure human accountability

166

as companies and broader society

scale their adoption of AI.

167

We asked Dr Benedict: in an era

of increasing workplace automation,

168

which human function will remain critical

for leaders over the next 5 years?

169

His answer was: the one thing you can't

delegate to AI is human accountability.

170

In fact, you have to elevate it.

171

Generally, accountability

sits at the very top of an organisation,

172

and with AI,

we need to ensure this continues

173

and that this accountability is traceable

through to AI-driven

174

decisions, actions

and outcomes across an organisation.

175

There can't be any room for a situation

where AI leads to a bad decision,

176

or performs a task

in a way that causes harm, and we're left

177

wondering who was accountable

for that outcome.

178

Wherever AI has operated

179

without a ‘human-in-the-loop’,

it's nearly always ended up in tears.

180

One thing humans

181

do that

AI machines can't is take accountability

182

for the broader outcomes

that are developed and achieved.

183

As leaders, we need to understand the

AI we're accountable for, and importantly,

184

exercise the right diligence

to ensure it’s performing within our risk

185

appetite and employing the controls

we expect to see in place.

186

Knowing how to lead and govern

187

machines will be a key

skill for leaders in the coming years.

188

Our next question was:

how can organisations build principles,

189

controls and leadership structures

190

that ensure human accountability

without slowing innovation?

191

Dr Benedict said: if you want to scale AI,

you have to scale AI governance,

192

and that starts with making accountability

explicit.

193

For centuries, human accountability

was often implicit,

194

with the main challenge

identifying where the buck stopped.

195

However, as we hand off work that humans

previously did to AI, the question

196

then becomes, who is accountable for

the decisions and actions that AI takes?

197

What we've seen previously

with new technology innovations is someone

198

being allocated executive accountability –

a chief information officer,

199

a chief digital officer, and now, a chief

AI officer.

200

Often, that's because you need someone

at an executive level

201

who can set a direction, and who's

also accountable for delivering it.

202

Organisations need to make

203

this principle of accountability

abundantly clear to staff.

204

They may use a tool, but ultimately, it's

their name and reputation on the line,

205

reinforcing

this need for explicit accountability.

206

We can't risk the responsibility

for AI actions falling between the cracks.

207

That only ever ends badly

when things go wrong.

208

This approach is much more pressing

as we move towards agentic AI.

209

Unlike gen AI, which creates

and summarises content, agentic

210

AI is autonomous and can reason,

211

make decisions in dynamic situations

and then act digitally.

212

Finally,

we asked: what practical steps can leaders

213

take to navigate with humanity

in an increasingly automated world?

214

Dr Benedict shared 5

practical steps for leaders.

215

Number 1: become fluent in AI.

216

It's hard to lead an organisation

or a team that's been disrupted by AI

217

if your understanding of the technology

stops at the basics.

218

Leaders have elevated their knowledge

in key domains over the years,

219

from financial knowledge,

health and safety, risk, cyber,

220

and now it's AI's turn.

221

You can't delegate fluency

222

in these strategic domains to others,

and AI is no different.

223

Number 2: lead by experiencing change.

224

Leaders must determine the implications of

AI for their own roles

225

to better empathise

with how the technology will transform

226

the roles of their team and customers.

227

Number 3: futureproof your workforce.

228

Encourage AI use from the bottom up,

not just dictated by central teams.

229

The time for command-and-control, top-down

AI micromanagement is passing.

230

Delegating decision

rights is key to unlocking scale, provided

231

you have a focus on embedding controls

and elevating your team’s

232

fluency of the risks and opportunities

AI presents.

233

Number 4: balance opportunity with risk.

234

Focus on educating staff and leadership

on AI's risks, controls, and benefits.

235

This knowledge will help leaders

236

ensure their people are less likely

to make inadvertent mistakes,

237

while taking advantage of the innovation

now possible.

238

Number 5: invest in and experiment

with AI.

239

It's crucial to invest in the technology.

240

The initial attitude of many organisations

was to say,

241

“you can't use AI”,

but that's not realistic anymore.

242

It's almost impossible to buy technology

that doesn't feature AI in some way.

243

Instead, work out

how to introduce the technology safely

244

into the organisation, then encourage

staff to experiment and extract value.

245

Part 4: the shared perspective.

246

“The future is already here.

247

It's just not evenly distributed.”

248

According to Dr Benedict, this quote

by science fiction writer William

249

Gibson exemplifies the integration of AI

into the business world.

250

“Uneven AI adoption is very much

the case in organisations –

251

some are very progressive

and considered in their approach,

252

while others are lagging

behind,” Dr Benedict said.

253

“AI isn't

something you can delegate anymore.

254

The emphasis has shifted

from building the technology to using it.

255

If you have a mobile phone,

you have access to a powerful technology,

256

and you need to be accountable

for how you use it.

257

The experts agree that knowledge

and understanding are key to leading

258

organisations through AI's fast-paced

workplace transformation.

259

“AI is a double edged sword –

the technology comes with significant

260

benefits as well as significant risks,”

Professor Indulska cautioned.

261

She said the better equipped leaders

262

were to understand the implications

and applications of AI,

263

the more they could harness its potential

to lead with empathy.

264

Additionally,

AI has the potential to reshape

265

leadership priorities and retain people

at the centre of an organisation.

266

“Many task-oriented responsibilities can

now be automated or augmented through AI.

267

This shift means that, theoretically,

leaders should have more capacity

268

to focus on people-oriented functions,”

Dr Chiu said.

269

To thrive, organisational culture

must evolve to balance AI innovation

270

with trust, transparency, and inclusion,

ensuring technology

271

empowers rather than replaces people.

272

If business leaders adopt and adapt,

they can position themselves

273

and their organisations

for future success.

274

Wow, that's a lot to digest.

275

Thank you to the experts

for sharing these valuable insights.

276

And that's all we have time for today.

277

You can read more UQ Business School

research insights

278

at business.uq.edu.au/momentum

279

See you next time.