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Change management in the AI era – 8 things business leaders need to know

Michael Hill | 05/14/2025

The artificial intelligence (AI) era is here – and change management has never been more important. AI adoption is skyrocketing – driven by new advancements in generative AI and agentic AI.

Organizations are investing heavily in AI technology to support wide-ranging business use cases. From enhancing automation and augmenting (or replacing) workforces to streamlining processes and improving compliance, the potential of current and emerging AI is huge.

However, behind the tech and hype lies the most crucial factor in achieving effective, last success from AIchange management. Carefully managing the vast amount of change AI adoption can trigger is essential. If not, investment can be only wasted – it could cause more harm than good.

As businesses increasingly integrate AI into corporate workflows, change management strategies must evolve to harness the transformative potential of these technologies.

Here are eight things business leaders must know about change management in the AI era.


1. People come first

Even with AI, innovation still starts with people, says Stephen Hinch, former Hewlett-Packard (HP) executive and author of Winning Through Innovation. “While generative AI can handle predictable tasks, true creativity and change management require a human touch.” Managers must learn how to cultivate innovation in their teams. “Senior support is essential, but not sufficient. Every employee must believe that innovation is encouraged. That mindset is what turns disruption into opportunity.”

Humans have an inherent resistance to change and a strong preference for the status quo, adds Andrea Schnepf, founder and managing director of nepf. “Behavioral change is often the most challenging aspect of AI implementation because it requires individuals to break away from familiar routines and habits.”


2. Trust is key

One thing remains unchanged in the AI era: change management is less about tech and more about trust, says Arianna Cerrito, award-winning business mentor and founder of StartUpAndRise. “Leaders must move beyond hype and focus on building clarity, emotional safety and strategic alignment as they integrate AI.”

However, you cannot outsource trust – you must earn it, adds Dr Ja-Naé Duane, faculty at Brown University and research fellow at the MIT Center for Information Systems Research. “That means being transparent about your AI vision, inviting questions, listening deeply and involving your teams in the journey. If your people do not trust the process, they will not move with you.”


Building trust in AI systems


3. Leadership sets the tone

In the AI era, change management is supported by leadership. “Leaders need to address fears, build capabilities and create the necessary psychological safety to innovate and drive growth,” says Leah Brown, founder and CEO of The WayFinders Group. “This goes to culture and a willingness to allow people to test, learn and fail fast. In many businesses, this model is hard to embed.”

Leaders must possess a clear vision of how AI will benefit the organization and work to convey this vision effectively to their teams, says Schnepf. This includes explaining the purpose of AI, addressing any concerns or fears and inspiring confidence in the new technology.

“Leadership is not about control – it is about connection,” says Duane. This moment calls for leaders who are connectors, sense makers and co-creators. “Your job is not to dictate direction. It is to design the conditions where people can thrive and innovate. The most effective leaders now are those who empower others to lead alongside them.”

Effective communication is necessary as technology continues to evolve. “Leaders must articulate both the ‘why’ behind the technological changes they are implementing and honestly acknowledge and embrace uncertainty,” says Brown. “Transparency (while uncomfortable) builds trust.”


4. Change is continuous

The pace and complexity of AI-driven change means transformation can no longer be treated as a one-off event. It is a constant. “The organizations that perform best are not those chasing perfect plans but those that accept the tension between long-term direction and short-term volatility,” says Dieter Halfar, partner at Elixirr. They use disruption as a stress test, refining what works, discarding what doesn’t.

“Change is not a phase – it is the environment,” echoes Duane. Waiting for stability is a waste of leadership energy. “AI has increased both the speed and complexity of transformation. The ‘SuperShifts’ framework shows us that we are living through nine massive societal shifts, all moving at once. Leaders must build systems that can adapt in real-time.”


Join us at All Access: Change Management for Business Transformation 2025 and learn how to measure change initiatives


5. Training and upskilling are essential

Training and reskilling are not optional – they are essential. “Work is being redefined. Roles are changing. Skills are evolving. We need to invest in people, not just with technical training, but with the mindset and agility required to collaborate with intelligent systems,” says Duane.

Helping people build confidence with AI through upskilling and hands-on learning can turn resistance into real engagement. Track how change is landing using data, but don’t get stuck in endless analysis. Stay agile and keep moving forward.


6. Experimentation breeds innovation

Leaders need to ensure their teams see AI as a tool that can simplify their tasks and make them more efficient. Technology changes can feel daunting but when handled well, they can open up exciting opportunities for growth and innovation. “Most importantly, create a culture where it’s safe to experiment,” says Cache Merrill, founder of Zibtek. “Let people know it’s okay to try, mess up and try again. That’s where real innovation happens.”

Adam Yong, founder of Agility Writer, has seen firsthand how important it is to create a space where the team feels comfortable experimenting with AI. “This helped everyone ease into the transition without feeling overwhelmed. The key is helping your team see how the technology enhances their work and not just how it alters their roles.”


Read 7 free AI training courses for business leaders


7. Holistic views are paramount

Leading change management in the AI era demands that organizations take a holistic view of how they’re advancing their implementations, says Kate Katz, principal at advisory firm FMG Leading. “Otherwise, they might come in on time and on budget but not meet intended goals.”

This requires leaders to adjust the lens through which they view and understand adoption initiatives. Instead of just focusing on the capabilities of newly available tools, they need to consider the effect these innovations will have on existing structures, processes, systems, norms and team members throughout their organization. “Crucially, they need to lead such efforts with a commitment to driving the enterprise changes needed to ensure that implementations are a big-picture success,” says Katz.

True impact comes from integrating AI with process intelligence to align people, processes and strategy. Process intelligence empowers leaders to navigate change with clarity, monitor progress with transparency and drive continuous improvement, says Marlon Dumas, chief product officer (CPO) of Apromore. “In the AI era, effective change management is fueled by data-driven insights that ensure every initiative delivers measurable and lasting business value.”


8. Agility fosters resiliency

Change management today is not about controlling the process but about enabling agility. That means simplifying decision-making, investing in relevant skills and fostering collaboration across teams. It also requires building systems that flex, detecting problems early, creating alternative pathways and treating suppliers as strategic partners, not just vendors.

“In the AI era, success depends on shutting down what is no longer useful, doubling down on what is and being clear about why decisions are made,” says Halfar. “Resilience is not just about endurance. It is about moving forward with clarity, even when the path is uncertain.”

Indeed, agentic AI and generative AI tools aren’t just analyzing data anymore – they are making decisions, triggering actions and learning from outcomes. “If your operational model is still built around reporting and review cycles, you’re not managing change – you’re managing lag,” says Paul Butterworth, co-founder and chief technology officer (CTO) at Vantiq.

Deployed multi-agent systems represent an entirely new management model. They decentralize decision-making, embed intelligence at the edge and are built to thrive in uncertain, dynamic environments. “Leaders are already designing systems that adapt, act and learn continuously. If your business can’t do that, it’s not ready for AI – and AI will most likely move on without you,” says Butterworth.


Read 9 free change management training courses for business leaders


Change management in the AI era – are you ready? 

We are living in a time of unprecedented possibility. Ultimately, leaders are not just navigating change – they are rewriting the rules of how organizations, people and systems operate, concludes Duane. “In this new landscape, change is not a project to complete. It is the atmosphere we breathe.”

We are living in a time of unprecedented possibility. “The real question is not whether we can manage this change. The question is whether we are bold enough to shape it,” says Duane. This is not about helping people survive disruption. It is about equipping them to design what comes next.

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