AI is fundamentally reshaping the business and tech landscape, requiring leaders to embrace new skills and approaches to effectively navigate this new era.
For instance, according to DDI’s Global Leadership Forecast 2025, senior leaders who are effective at building trust are 2.8 times less likely to encounter resistance to AI adoption. Yet at a time when trust is critical, data shows that only 29 percent of employees trust their managers and only 32 percent trust their senior leaders.
This crisis of trust is particularly exacerbated during periods of significant change explained Dr. Adam Taylor, senior director of Assessment Content Design and Development at Development Dimensions International (DDI).
Fortunately, testing services have developed assessments that leverage artificial intelligence to help companies select and develop leaders who can build trust and leverage other relevant skills. Here’s how to integrate AI-powered assessments with traditional assessments to evaluate leadership potential more effectively.
Redefine What Success Looks Like
Start by redefining what success looks like in an AI-driven environment Taylor said. Without a clearly defined picture of the skills, qualities and behaviors that are needed to lead the company, selecting the right battery of assessments can be a challenging and complex task.
What do you want to measure? For example, our research shows that the skills that matter most are the ones that help people navigate disruption and thrive through change, he said. In fact, 61 percent of leaders see managing change as a critical future-focused skill, yet only 36 percent have received training in this skill.
Leading through change often comes down to five essential capabilities—connection, conscience, creativity, clarity and curiosity—or “the five Cs.”
For instance, clear and consistent communication during times of change can help to remove ambiguity and facilitate a smoother transition. A scenario-based assessment can reveal whether a prospective leader possesses communication skills and emotional intelligence, and perhaps most importantly, whether they know how and when to apply those skills and behaviors to achieve a positive outcome.
Use the Right Assessment at the Right Time
Most AI-powered assessments leverage algorithms and data to provide insights into leadership potential, strengths, and skill gaps more effectively and accurately. They are quick to administer and tend to be more objective, enabling organizations to make more informed decisions when it comes to selecting and developing talent.
These tools have the ability to assess micro behaviors and predict leadership potential without human bias. They can also enhance the accuracy, and personalization of evaluations for current employees, helping organizations identify high-potential leaders and tailor development programs.
That said, they aren’t meant to be a standalone solution. They are most effective when
integrated with human judgment and the interaction that comes from behavioral interview questions or 360-degree feedback surveys for current employees.
How and when you administer the assessments matters Taylor noted. For example, it’s best to use AI-powered leadership assessments in the later stages of the hiring process once a small slate of candidates has been identified and vetted.
Because leadership effectiveness is influenced by a multitude of factors, including both individual attributes, situational contexts and things like the company’s work practices and culture, HR leaders and recruiters should always use a muti-step, multi assessment approach for evaluating potential leaders noted Dr. Leslie Thomas, chief psychometric Officer for Kryterion, a leading test development and delivery company.
Also, because leaders are navigating a new, rapidly evolving landscape, the sample size for these assessments may be small, making accurate predictions about future success challenging.
To ensure the rigor and effectiveness of your leadership assessment programs, consider engaging a professional to review the validation reports Thomas added.
These professionals can provide context and help you determine if an assessment aligns with your desired profile, leadership needs and the company’s current situation and goals.
On thing is clear, finding capable and effective leaders for the age of AI requires a combination of human and AI collaboration.