Dive Brief:
- Although almost three-quarters (72%) of HR professionals have used or plan to use artificial intelligence-based learning tools for leadership development, only 37% of companies currently using those tools have seen strong results, according to the Global Leadership Forecast 2027 from DDI, a leadership development company.
- AI coaching works best in conjunction with other methods, per the research. Nearly two-thirds (64%) of leaders who said they received both AI and manager coaching said their development was “high quality,” but just 45% who only received manager coaching and 39% who only got AI coaching agreed.
- As AI takes on tasks previously given to early career workers, it may also be affecting the development of critical skill sets. A separate study found that 78% of senior HR leaders, talent acquisition managers and learning and development experts said they were concerned about how AI is impacting the evolution of managerial skills with regard to the leadership pipeline.
Dive Insight:
Despite the importance of effective leadership training, DDI’s study found that only 1 in 4 leaders believed their manager was an effective coach. As a result, many end up entering leadership development programs without the kind of foundational skills that AI-based coaching needs in order to effectively deliver results.
“Most organizations aren’t seeing strong results when using AI in development, which suggests the technology alone isn’t the answer,” Rosey Rhyne, manager of DDI’s Center for Analytics and Behavioral Research, said in a statement. “The coaching that matters most comes from a leader’s manager.”
However, it can be difficult to assess organizational development programs, and while 68% of HR professionals said development improves leadership capabilities, only about half (51%) can show proof that these programs work.
The study recommended that any leadership development program include assessment and personalized experiences, and added that when a company is able to diagnose leaders’ strengths and needs, it’s more than twice as likely to see improved leadership capabilities. Yet just 13% of HR teams say they use assessment extensively in this manner.
Looking ahead, companies with improved leadership capabilities are 1.6 times more likely to be top financial performers, per the study. It added that strong development programs can help deepen that bench, “allowing HR to fill 39% more critical leadership roles with internal candidates.”
“Every business strategy is a bet on leaders, but too many organizations are still making that bet without evidence,” Verity Creedy, chief product officer at DDI, said in a statement. “HR has access to something incredibly valuable: objective data about leadership capability, readiness, and growth. The opportunity now is to turn that data into intelligence the business can act on, showing not just that development happened, but where it changed leadership capability and truly strengthened the bench.”