Is AI Learning Empathy, or Are We Losing Ours?

The Rise of AI in People Management: Are We Trading Human Connection for Convenience?

What if the future of people management isn’t about people at all? At the CIPD Festival of Work, AI seemed ready to take over.

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Rise of The Machine

This was the year we finally launched ManageKind and it seemed like the perfect opportunity to attend the CIPD's Festival of Work at London's Excel Centre. We wanted to see what was happening in the people management space, network, and maybe even attract some business.

The event was impressive—huge stands from all the big players, with some setups that must have cost as much as a small house. It was a little overwhelming for a small, two-person training provider like us. But as we wandered through the exhibition hall, one thing quickly became clear: People were no longer the main attraction.

The Perfect Storm in People Management

The people management sector has exploded over the last five years. The pandemic, alongside other factors, drastically changed how people view work-life balance. And expectations about what employers should offer have risen sharply.

People want more choice in how, when, and where they work. They expect better rewards, whatever form those might take. They want meaningful work and they won’t hesitate to leave if their current role doesn’t provide that. Add to this the continuous demands around diversity, mental health, and employee well-being, and it’s easy to see why HR departments are desperately searching for answers. They're searching for a new hero.

The Festival’s Star Attraction

That brings us back to the Festival of Work and its shiny smorgasbord of people management solutions.

It became clear early on that AI was dominating the conversation. Solutions designed to automate or streamline everything from payroll to employee engagement took centre stage. Big tech and AI were being touted as the magic bullet, the ultimate tool to solve every HR headache and, more importantly; do the heavy lifting when it comes to people management.

Here’s the thing: AI isn’t the problem. When used correctly, AI is fantastic. We've used it ourselves; DALL-E helped create our headline image. We are sure many solutions showcased at the festival will undoubtedly help solve today’s people management challenges by automating tasks and offering data-driven insights.

But while technology offers valuable tools, it cannot replace the human relationships at the core of effective leadership. This was the most eye-opening part of our time at the festival; the noticeable lack of focus on the human side of people management.

It seemed like people management was being managed out and handed over to AI.

AI in People Management: A Tool, Not the Solution

According to a survey by the Society for Human Resource Management (SHRM), nearly 85% of employers using AI or automation tools reported that they help save time and increase efficiency, particularly in recruitment and performance management. However, there's a significant limitation—AI still struggles with empathy. 24% of organizations highlighted the need for human intervention in AI processes to handle tasks requiring emotional understanding.

It seems that people management demands a human touch, and relying too heavily on AI risks reducing employees to mere data points, missing their unique motivations and challenges.

The Real Challenge: People Are Messy

Managing people isn’t just about automating processes or crunching numbers. Let’s be honest; we are messy, demanding and awkward and every one of us comes with different needs, motivations, and personalities. That complexity requires emotional intelligence and human insight.

AI might be efficient but It can't navigate the subtle, often uncomfortable, realities of human interaction.

Take Amazon’s 2018 attempt at AI-powered recruitment for example. The system, trained on historical data, developed a bias toward male candidates; reinforcing rather than eliminating hiring inequalities. This is a stark reminder that AI, without careful oversight, can't address the complexity and diversity of human beings.

Moreover, Gallup’s data reveals that only 23% of employees worldwide are engaged. This disengagement is costing the global economy $8.8 trillion annually. These numbers are driven by a lack of trust and weak relationships with managers - issues no AI tool can fix.

AI + Humans = The Winning Combo

Despite this, the festival demonstrated AI’s potential to enhance, rather than replace, human leadership. AI can free up managers from administrative tasks, allowing them to focus on what truly matters; engaging with their teams (on a personal level).

AI can track performance trends or analyze employee feedback, but it’s still up to managers to interpret that data and take meaningful action.

Some of the most successful organizations know how to balance the efficiency of AI with the power of human connection. Southwest Airlines is a prime example of this. While the airline leverages technology to streamline operations, its 'real' success comes from prioritizing trust, employee well-being, and human relationships. It is this focus on people-first leadership that has helped Southwest achieve long-term success.

Investing in Managers, Not Just AI

The key takeaway from the festival is clear: AI can be a valuable tool for HR, but organisations must continue investing in their human managers. According to Harvard Business Review, 70% of employee engagement is directly driven by managers. Organisations that prioritise leadership development see a 23% increase in productivity and a 20% improvement in retention.

The future of people management lies in empowering managers to build strong relationships with their teams, motivate individuals, and foster trust. AI can help by automating tasks and offering insights but it cannot replace the emotional intelligence and interpersonal skills needed to lead people effectively.

And at some point, someone will have to go into the trenches and get their hands dirty, talk to people and fix things. someone is going to have to have that awkward conversation face to face and someone is going to have to be accountable to the workforce on behalf of the powers that be.

Conclusion: Human Leadership for a Human Workforce

The CIPD Festival of Work showcased AI’s exciting potential in HR but it also highlighted a fundamental truth: while AI can enhance people management, it cannot replace the human connection at its core. Employees need to feel valued as individuals, not just as numbers on a screen.

The organisations that will thrive in the future are those that strike the right balance between technology and human leadership. By investing in both AI tools and manager development, companies can create workplaces that are efficient, emotionally intelligent, and human-centred.

AI is a powerful tool, but when it comes to people management - nothing can replace the human touch.

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