A C-suite divided: Does empathy really matter? 

“AI does not create value on its own. People create value when they’re enabled with the right set of skills and confidence. If leaders reduce capacity without building capability, they could risk undermining the very productivity gains they’re chasing.” – Sony SungChu, Chief AI Officer at Businessolver 

Sony’s words above ring true in theory, but new data from our 11^th annual State of Workplace Empathy report paints a much different picture of what’s happening in America’s C-suites: As AI transformation holds center stage, executives remain divided on empathy’s importance and value at work. 

What’s holding them back? 

Are executives letting AI cloud their judgement? 

As our work becomes more dependent on AI, executives aren’t aligned on empathy’s role in their organization. 

40% of executives believe AI adoption in their organization does not impact leaders’ need to display empathy. But 60% believe there’s a much greater need for leadership to display empathy. 

So where are they getting stuck? The data indicates that fear is the hidden barrier.  

More than half of executive leaders at high-growth companies say this is what’s giving them pause: 

• Not confident in their ability to display empathy consistently 
• Having their decisions challenged 
• Difficulty making those decisions 

High-growth organizations also see 2X more executive respondents saying they’ve experienced intimidation among coworkers. 

See the data for yourself: www.businessolver.com/workplace-empathy 

The C-suite is pushing for performance and cost savings; employees are paying the price 

Executives who say their organization saw high financial growth are 2X more likely to say that cost savings via headcount reduction is the primary motivation behind AI investment. 

This doesn’t exactly inspire confidence, trust, or delight among those employees: 

• 40% of employees say their workplace is toxic 
• 33% say they experience coworker intimidation 
• 55% cite experiencing at least one mental health issue in the past year 

What the data is telling us: When empathy isn’t present in the C-suite, it plays out among your workforce.  

Here’s what’s at risk when empathy isn’t present 

Those high growth organizations may not be claiming high growth for long.  

We asked executives to tell us what business risks they’re most concerned about. Here’s what’s at the top of their list: 

• Technology outpacing systems or their workforce skill 
• Rising labor costs and unionization 
• Talent shortages 

How does empathy solve for this? By establishing a culture norm in your organization. Empathetic leaders are more likely to proactively invest in strategies and trainings to mitigate these risks.  

We take a closer look at that in our AI special report: www.businessolver.com/workplace-empathy 

The bottom line: AI transformation requires people 

AI may be reshaping how work gets done, but it does not eliminate the need for empathy. Leaders who pair ambitious technology strategies with clear communication, thoughtful change management, and meaningful investment in their people will be better positioned to earn trust and sustain performance. 

The mandate for the C-suite is clear: Treat empathy as a business capability, not a soft skill. Build leaders’ confidence, invite healthy challenge into decision-making, and ensure workforce capability grows alongside AI investment. 

Because the organizations that win with AI will not be the ones that move fastest at any cost. They will be the ones that bring their people with them.