How difficult conversations are a leader differentiator

As AI grows in capabilities and human reliance increases, one skill that is only growing in importance is one of the most uncomfortable to practise.

New research suggests there are some things that are not worth outsourcing to AI.

In their August 2026 insights report, Dynamic Leadership Programs Australia (DLPA) found that senior leaders and managers are driving AI usage in Australian workplaces.

While this might be an expected finding, the research also revealed a stronger reliance on AI, with leaders just as likely to ask AI for performance help or general assistance as they are to defer to a colleague or manager.

Further, 24 per cent of senior leaders are not certain they could perform their job without AI, and 53 per cent have used AI for sensitive matters such as managing feedback, performance, conflict or complaints, reinforcing a stronger reliance on the technology compared to employees.

DLPA and Crestcom ANZ chief executive Karlie Cremin said the research points to the issue of over-reliance on AI, and where human accountability and judgement are better suited.

“AI can be a highly valuable tool to help managers prepare, structure their thinking, and check their tone. However, we risk weakening the very human skills effective leadership requires if technology is increasingly used to outsource uncomfortable interactions,” Cremin said.

“While AI is an excellent supporting tool, organisations must clearly distinguish between AI supporting leadership and AI substituting for leadership.”

In this way, Cremin explained that skills in judgement, emotional intelligence, courage and accountability cannot be replaced by technology, regardless of capability, and that avoiding communication only causes further issues down the line.

“When managers avoid these moments, performance problems, conflict, and distrust compound.”

This idea is also reflected in Australian workforces, with 84 per cent of surveyed employees preferring to be managed by a human, and only nine per cent being completely comfortable with their manager using AI for performance reviews.

Similarly, only 35 per cent of workers believe digital communications are never or rarely created with AI help, and less than 50 per cent trust its ability to elicit genuine communications compared to those written by human leaders, suggesting employees are genuinely more comfortable with and trusting of leaders that exercise traditional managerial characteristics.

With more than 50 per cent of the Australian workforce believing the next generation of workers will have weaker workplace skills due to AI, perhaps the increasing implementation of AI in Australian workplaces will identify the next generation of effective leaders.

Cremin urged employers to treat AI adoption as less of a technology exercise, and more as a leadership challenge.

She said: “The ultimate goal of using AI in the workplace must be to make leaders better prepared for human conversations, ensuring human empathy, judgement, and accountability remain firmly in the driver’s seat.”

“Difficult conversations are not an inconvenience of leadership – they define leadership.”

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