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How to properly manage AI integration as a business owner

Efe Udin

July 1, 2025

Since 2023, artificial intelligence has rapidly moved from a niche interest to a central part of many businesses. It’s no longer just tech teams who discuss AI; company boards now see it as a tool for boosting productivity, addressing skills shortages, and even helping to reform entire sectors like healthcare.

A growing number of firms are investing in AI. According to a survey of senior executives, 40% of companies plan to increase spending on AI tools. But as adoption grows, so do concerns. In a recent piece I did, I explained how AI is not here to completely take our jobs. However, this is not the view of many, especially those in the U.S., who believe AI is already taking jobs.

Nevertheless, it is important to reiterate that as AI technology is improving, it cannot replace the human qualities that make great leadership possible. That reality must remain central to any AI integration strategy.

Don’t replace people, support them

Drew Posey, CEO of DPC and a leader with a background in elite sports, argues that AI should not replace people, especially in leadership roles. Over-reliance on AI may help streamline operations, but it also risks weakening essential human connections in teams.

This might not show up immediately in company accounts, but it could hurt staff morale, teamwork, and trust. Posey believes leaders are more than decision-makers; they are the glue that holds teams together. Good leaders understand their team in ways AI cannot, and this needs to be protected during AI integration.

The irreplaceable value of emotional intelligence

While AI is good at analysing data, it lacks emotional intelligence. It can’t detect subtle shifts in tone, body language, or mood. A skilled leader knows when someone is struggling or needs support—an ability no algorithm can truly match.

Leaders draw on years of experience and instinct. This “gut feeling” is based on accumulated knowledge, relationships, and lived insight. AI, on the other hand, depends solely on the data it’s given. And when it lacks data, it can simply make things up.

A widely publicised example occurred in May 2023, when a U.S. law firm cited fake cases generated by ChatGPT. This kind of hallucination shows that AI cannot always be trusted to make sound judgments. Human oversight remains essential, especially in contexts of AI integration.

Soft skills matter more than ever

Soft skills—like communication, empathy, and adaptability—are what turn managers into true leaders. These qualities can’t be taught to machines. They involve real-time judgment, emotional awareness, and the ability to guide people through challenges.

Posey warns that if organisations focus only on developing AI capabilities while neglecting soft skills training, they risk creating environments where staff feel disconnected, undervalued, or simply replaced. Balanced AI integration requires deliberate investment in human development alongside technological tools.

Learning from elite sport

Posey’s experience in elite sports offers a useful example. Modern sport is highly data-driven. Teams collect vast amounts of performance data to prevent injury or boost results. But data doesn’t always tell the full story.

For example, sports scientists may say a training session should end because a player is close to injury. But an experienced coach may look at the player, judge their physical state, and decide they can safely continue. The coach isn’t ignoring science—they’re using it alongside their own understanding.

Likewise, coaches sometimes pull players early because they can see signs of fatigue that data might miss. In both cases, the human element remains essential. Trust, observation, and leadership all play roles that can’t be digitised.

AI is a guide, not a replacement

The message is clear: AI should be a guide, not a master. It’s valuable for collecting data, identifying trends, and supporting decisions. But it should never replace human insight. Posey believes this balance is key not just in sport, but in any team or business setting.

According to Orgvue, 55% of U.K. companies that replaced humans with AI admitted that their decision was wrong and are now re-employing.

When leaders overly trust AI, they risk making poor decisions, ones that cost more than money. In sport, pushing an athlete too far could mean injury and lost medals. In business, a toxic work culture can lead to burnout, mental health problems, and high staff turnover.

Don’t forget the cost of poor judgment

Misjudging a situation has real costs. Sometimes it’s financial, like wasting money on tools that don’t fit the company’s needs. Other times it’s personal. Staff who feel like numbers instead of people are less likely to feel loyal, stay motivated, or perform well.

Posey stresses that good leaders must protect that human element. In his 25 years in sport, he hasn’t seen a coach who got that balance wrong—because they all understood that data supports, not replaces, their decisions.

AI integration needs a human plan

Businesses should learn from this. AI isn’t going away. In fact, it’s likely to become even more advanced and widespread. But companies that focus only on the tech—and ignore people—will miss the bigger picture.

To integrate AI well, leaders need a plan that includes upskilling staff, protecting team dynamics, and making space for empathy. Human qualities should be seen as strengths, not weaknesses, in the age of automation.

Conclusion: Keep the human in the loop

AI is a powerful tool. It can improve decision-making, speed up work, and reduce mistakes. But it cannot lead people, build trust, or understand emotions. That’s the job of a human leader.

As AI becomes more common, leaders must not step back. Instead, they must step forward, ready to use AI as a support, while staying connected to their team. The best outcomes will come when machines and people work together, not when one tries to replace the other.

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