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Leadership in the AI Era

BY Kathleen Ross | November 18, 2025 | read / Insights from the Outside

Going beyond the hype to real transformation.

Listen to this story starting at 13:05 on the new, revamped The DSN Podcast. Even when your day is packed, we make it easy to stay informed, engaged and one step ahead. Listen now or read below!

I’ve been speaking about AI transformation across the COUNTRY for the past few years, and there’s one question that continues to come up when I speak with leadership: What if the real barrier to AI adoption isn’t our teams’ capabilities, but our own leadership blind spots?

Just kidding. I wish that were the question more leaders were asking.

Most of the questions I actually hear are: How can we save money? What can AI do for us? Can’t AI replace an entire department? Even when leaders don’t say it out loud, that’s the internal dialogue. And honestly, I get it. This is the moment to evolve or get left behind.

But the harder, more important question is this: How do I need to change the way I lead? What old habits do I need to abandon to prepare for an AI-powered future? That’s the real challenge.

The Leadership Paradox

I watch executives get excited about AI’s potential. They send new tools to their teams and get frustrated when adoption doesn’t happen at “machine speed.” But most haven’t adjusted their own ways of working.

You can’t lead an AI transformation with pre-AI leadership habits. It’s like trying to coach Formula One while driving a horse and buggy.

Stanford research shows that 70 million US workers are about to face their biggest workplace transition because of AI agents. That includes leaders. There’s no playbook for this because the technology is evolving faster than any of us can predict.

Everyone Just Got a Promotion

Here’s the mindset shift most people miss: everyone in your organization just became a manager. Not of people, but of AI tools and agents.

Your marketing coordinator is now managing AI for content creation. Your sales team is directing AI assistants for lead research. Every role now includes prompting, quality control and knowing when to intervene.

Two Paths Forward

Right now, I see two very different approaches to AI adoption.

  • Path One: Cut and Save
    Leaders who choose this route see AI as a way to reduce headcount, streamline operations and focus on the savings alone. It’s tempting, but it’s shortsighted if you don’t have a plan for what comes next.
  • Path Two: Train and Transform
    These leaders view AI as a way to amplify human capability. They reinvest efficiency gains into reskilling, new opportunities and innovation. And look, not everyone can be saved, but this path opens new opportunities and creates roles that don’t exist yet.

The second path fuels long-term growth, where people use AI as a thinking partner and unlock creativity at scale.

Three Leadership Challenges

Leaders today juggle three distinct challenges. They’re still leading people, which requires emotional intelligence, trust and vision. They’re also leading AI, which demands understanding its capabilities and limits. And they’re leading people who are learning to work with AI, which requires creating psychological safety for experimentation and a culture that rewards innovation. All while ensuring teams don’t become overly reliant on AI or abdicate critical thinking to machines.

Who is Danny/shutterstock.com

What’s coming next adds another layer: AI-to-AI conversations, where systems communicate and make decisions without human oversight. How do you lead when parts of your business are happening in conversations you’re not even in? In short, guardrails, but I don’t have all the answers to that one yet.

Speed Meets Reality

Yes, AI can do things incredibly fast. I’ve seen full presentations generated in minutes that once took days. But speed isn’t the same as skill. Learning to use these tools well takes practice, iteration and re-doing.

This isn’t a “stop everything and learn AI” moment. It’s a daily discipline to innovate.

The World Economic Forum says six out of ten workers will need new skills by 2027. The only way forward is to start building them now.

The Framework for AI-First Leadership

Leading in an AI-first world starts with one question: How can AI enhance this process? But the deeper challenge is being willing to rethink how work gets done.

It means blowing up systems that have worked for years. It means accepting that some days you’ll be learning as much as your most junior employee. And it means maintaining the human in the loop for critical decisions while allowing AI to take over the routine.

The Human Edge

Despite everything AI can do, humans remain irreplaceable in three areas: taste, relationships and creativity.

AI can process customer data, but it can’t build the trust that closes complex deals. It can optimize processes, but it can’t imagine entirely new business models. It can handle interactions, but it can’t decide what’s truly valuable to a customer.

For field leaders, this is critical. They are the face of the organization, building connections that no AI can replicate.

The Real Challenge Ahead

The hardest part isn’t just a technical one. It’s human. Your people need more support right now, not less. They need to know they matter; that they have a future; and how to get there.

The leaders who succeed won’t be the ones with the fanciest AI tools. They’ll be the ones who remember to implement AI in a way that keeps people engaged and feeling valued in this new world. DSN

You can’t lead an AI transformation with pre-AI leadership habits. It’s like trying to coach Formula One while driving a horse and buggy.


KATHLEEN ROSS, Fractional Chief Marketing Officer & Keynote Speaker, is an accomplished marketing executive with over 15 years of experience driving brand growth for startups and Fortune 5000 companies. As a CMO, she’s known for spotting whitespace opportunities, executing large-scale campaigns and events and building high-performing teams. Kathleen brings a unique blend of strategic vision and creative excellence—making her a compelling voice for today’s fast-moving marketing landscape.

From the November/December 2025 issue of Direct Selling News magazine.

Posted in Insights from the Outside and tagged AI, leadership.
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