Why empathy, not just AI, is driving the future of business

AI is the topic of every conversation in business today. It’s in every strategy document, boardroom discussion, and press release because of its potential to transform organizations, from boosting productivity to dramatically improving employee and customer experience.

Yet there’s something I consider equally powerful shaping the future of business that doesn’t get nearly as much attention: empathy. Empathy—our ability to understand and share the feelings of others—is a critical skill that today’s CIOs must embrace if they want to lead effectively in the age of AI.

AI may help us automate tasks and derive insights from data, but it’s empathy that will help us bridge the gap between technology and people, creating experiences that genuinely serve a business’s most valuable assets: its employees and customers.

In my experience as an IT leader and CIO, empathy is one of the most powerful tools I have at my disposal. It means putting yourself in the shoes of employees to understand their day-to-day challenges so you can design systems that support them and improve their on-the-job experience. I try to ensure that the experiences I provide as a CIO are ones I would be happy to receive myself.

Demonstrating empathy in leadership isn’t just the right thing to do; it’s the most effective approach for achieving long-term success. According to research conducted by Medallia, where I served as CIO before joining Freshworks, leading with empathy drives higher employee engagement, leads to 30% higher Net Promoter Scores, and can boost employee retention by 50%.

The importance of this approach has only risen in recent years, during tectonic shifts in IT organizations. The pandemic, the rise of remote work, and now the integration of AI have all forced employees to adapt to major changes, often with little preparation. While technology plays a huge role in these transitions, the real measure of success is how well leaders and teams support their people through rapid change.

Equal empathy for EX and CX

A big part of this approach is focusing on employee experience with the same rigor that companies apply to customer experience. Too often, IT departments are laser-focused on metrics that track customer satisfaction while overlooking the experience of internal users.

I firmly believe that great internal experiences lead to great customer experiences. When employees feel supported and valued, they’re more motivated to deliver superior service to customers. So, whether it’s designing user-friendly internal systems or simply being open to feedback, prioritizing empathy in IT has a profound impact on employee engagement—and, by extension, customer satisfaction.

Read also: Researcher Matt Beane on ‘interactional expertise’ in the AI era

Another aspect of empathy is that it has to be mutual. Empathy is not just a leadership responsibility. Building a true culture of empathy means fostering an environment where employees and leaders alike show understanding toward each other. This mutual respect enables real collaboration and problem-solving because we’re not just working side-by-side; we’re supporting one another in pursuit of the company’s goals.

How can IT leaders put these principles into practice? It starts with soliciting meaningful feedback. Each year, I ask all employees to provide feedback about my organization and about me, producing a CIO reputational score. As part of this process, I make it a point to respond to every bit of feedback—whether you are a detractor or promoter—demonstrating the empathy I have for people who use our systems and services.

Balancing empathy with efficiency

Of course, leading with empathy doesn’t mean sacrificing efficiency. It often involves making hard choices that prioritize long-term employee well-being over short-term gains. For instance, when deploying new technology, if we roll out AI without considering the support and training employees need, we’re setting them up for stress and frustration later on. As CIOs, we need to consider the human impact of our decisions, taking the time to prepare employees properly for change. By fostering an empathetic environment that values well-being, IT leaders can build more adaptable teams that can handle whatever the future brings.

Empathy is more crucial than ever as the CIO role shifts from back-office operations to front-office strategy. With AI accelerating this transformation, CIOs are no longer just responsible for “keeping the lights on” in IT. We’re now integral to driving revenue, shaping customer experiences, and influencing the business’s strategic direction. But this new visibility and responsibility also mean that the way we lead—our values, our priorities, and how we support our teams—matters even more. AI may automate tasks, but it can’t replace the human-centered leadership needed to make technology work for people.

The bottom line: Empathy isn’t a “soft skill” or an add-on; it’s a core leadership skill for every CIO. Empathy drives productivity, enhances employee satisfaction, and ultimately improves customer experience. In a world dominated by AI, it’s our uniquely human capacity for empathy that will make the biggest difference in how we lead and how we make technology work for everyone.