Predicted ‘leadership vacuum’ already generating anxiety and uncertainty

As organisations ramp up their reliance on AI, something’s got to give – unfortunately for younger and lower-level employees, it’s their roles that are hitting the cutting room floor.

Considering Gen Z are more likely to both expect and experience AI-related job changes, their concerns and low wellbeing levels are more than justified.

New workforce data from TELUS Health suggested the pressure is already starting to take effect – not only in sentiment, but in work transformations that will directly affect the next generation of talent.

According to APAC region head Jamie MacLennan, “entry-level roles have traditionally been the training ground into leadership, but the impact of AI to these roles will decrease the pipeline for leadership talent further”.

“If we look at current trends, we risk a ‘leadership vacuum’,” MacLennan added.

In its September 2025 edition, the TELUS Health Mental Health Index revealed that workers worried about AI-driven job changes display mental wellbeing scores 10 points lower than those who aren’t. As expected, the 31 per cent of workers who believe AI could replace their role entirely showed the lowest mental health score.

In addition, 30 per cent of the total surveyed workforce already consider higher-level leadership roles unmanageable due to stress, suggesting it is not just one group of workers likely to be affected, but the entire pipeline.

MacLennan explained that transparency and deliberate AI implementation are the make-or-break factors for a workforce feeling threatened by AI.

He recommended the deliberate investment in “AI skills and leadership support for the exploration, experimentation and discovery of how AI can be used in current roles in a safe and human-led way to improve efficiency, and equip managers with the knowledge and tools to lead teams through changes”.

“Organisations must intentionally design AI to augment junior talent rather than replace them, or face a future where skilled mid-level management is non-existent,” MacLennan said.

And while MacLennan acknowledged that “with the rate technology is progressing, it’s hard to predict where we’ll be in three years time, let alone in 10 years”, he urged workers to “be proactive in learning how to use AI as a collaborator, as our research found 63 per cent of workers who anticipate dealing well with AI-driven changes have the highest mental health scores”.

Central to staying afloat, he added, was a focus on “developing human-centric traits that AI cannot replicate”.

“Human-centric leadership qualities such as critical thinking, empathy and compassion are increasingly in demand as AI handles technical tasks. To insulate yourself, lean into roles that require team-oriented and participative skills. Our data suggests that workers who feel confident in their ability to adapt to AI have a mental health score of 65, compared to just 51.9 for those who don’t,” MacLennan said.

At the end of the day, however, facing the AI wave cannot be done alone. As MacLennan identified, strong leadership and preparation together can best overcome the anxieties around an uncertain future.

And looking at workplaces overall, strong leadership directly correlates with higher employee mental health scores. With managerial support leading to wellbeing scores “at least 11 points higher than those reporting their manager being less supportive,” leadership skills remain critical in the age of AI.