Key Takeaways

• The Spend: Global AI investment is set to hit $2.5 trillion in 2026, yet technical spend is outstripping human capability.
• The Myth: Despite the promise of “saved time,” Harvard Business Review research shows AI isn’t reducing work; it is intensifying it.
• The Gap: The World Economic Forum identifies a growing “AI Perception Gap,” where organisations prioritise technical “what” over the human “how.”
• The Risk: Middle managers—the backbone of your strategy—report the lowest levels of psychological safety in the workplace (HBR), acting as shock absorbers for systemic friction.
• The Duty: In Victoria, managing psychosocial hazards is no longer a cultural elective; it is a legal mandate under 2025 regulations.
• The Solution: As automation masters the “vanilla,” the only remaining strategic advantage is depth of leadership. It is time to pause the automation and consider the human.

Estimated reading time: 5 minutes

It is February 2026. For most people in leadership, the start of the year has been dominated by a single, high-frequency hum: the AI Transformation.

As the Business Director at Social Agility, I spend my time looking at the systems that keep our business—and yours—running. I am less concerned with the “hustle” of the front-of-house and more with the underlying pulse of the organisation. Lately, that pulse is telling me something troubling.

According to Gartner, worldwide spending on Artificial Intelligence is set to hit $2.5 trillion this year. Boards are rushing to technicalise their workforces, chasing the efficiency of the algorithm.

But from where I sit, there is a very large, very expensive elephant in the server room.

This $2.5 trillion investment is running headlong into what the World Economic Forum calls the “AI Perception Gap.” While organisations are prioritising the technical “what,” there is a systemic failure to grasp the human “how.” We are investing in the tools, but we are under-investing in the actual human skills—the depth of leadership—required to use them effectively and safely.

While we are spending trillions on the technology, we are systematically under-investing in the who.

The Shock Absorbers

We were promised that AI would be a “time-saver.” The reality is proving to be the opposite. Recent research from Harvard Business Review reveals that AI doesn’t reduce work; it intensifies it. Instead of freeing up our leaders, technology has increased the velocity of expectations. Managers aren’t just doing their jobs; they are now managing the output of the machine, the digital anxiety of their teams, and the constant hum of “always-on” communication.

This intensity is creating a dangerous imbalance. While we automate tasks, the human infrastructure of our organisations is faltering at the centre. Middle managers now report the lowest levels of psychological safety in the workplace. On a scale of 100, they average just 68—significantly lower than both senior executives and the teams they lead.

Wedged between high-level AI mandates and front-line execution, these managers have become the “shock absorbers” for organisational stress. They are expected to drive efficiency through technology while somehow maintaining a culture they no longer feel safe in themselves.

The Systemic Risk

In Victoria, this isn’t just a “culture” problem; it’s a legal one. The Psychosocial Health Regulations are now firmly in place. Leadership has moved from a management task to a systemic duty of care.

An algorithm cannot foster psychological safety. It cannot sense the subtle shift in an organisation’s “nervous system” that signals impending burnout or cultural rot. Compliance with these new laws isn’t found in a software update; it’s found in the intentional, human behavioural choices of your leaders. If your managers don’t feel safe to speak up, your organisation isn’t just inefficient—it is at risk.

The Quiet Advantage

There is a misconception that to stay relevant in an AI-driven world, we must be faster and louder. As a quiet introvert who has spent a lifetime travelling and observing different cultures and systems, I believe the opposite is true.

The $2.5 trillion revolution is handling the repetitive and the fast. What remains on our desks is the deep work: complex problem-solving, ethical weighing, and intentional listening.

This is where the “quiet leader” excels. The ability to pause, to listen intently, and to act with strategic intuition is the only thing the machines cannot mimic. In 2026, the most valuable asset isn’t output; it’s depth.

Enough Thinking

For over a decade, Social Agility has been the “quiet partner” to technical experts making the transition into people-led leadership. Our programs—now officially Institute Approved—are built on this systemic foundation. We have seen a 100% maturity shift in managers when they are finally given the tools to move out of the “technical weeds” and lead with intention.

But as you look at your budget and your goals for the year ahead, I am not going to ask you to book a meeting or download a brochure.

Instead, I want to invite you to do something much harder: I want you to pause.

We have spent the last twelve months thinking about prompts, integrations, and efficiencies. Enough thinking. It is time to look at the people tasked with making this technology work—and whether they feel safe enough to do so.

Take a moment to look away from the spreadsheets. Look at the people sitting in your office, or on the other side of your screen.

• Are your managers—the backbone of your strategy—feeling safe enough to tell you what is actually happening?
• In the rush to be efficient, have you accidentally made your leadership “vanilla”?
• Are you building a culture that AI can support, or are you hoping AI will build the culture for you?
• AI doesn’t have skin in the game. It doesn’t care about your team’s safety or the legacy you leave behind. Only you can do that.

The more technical our world becomes, the more human you need to lead.

Other Interesting Posts from Social Agility

• The Elephant in the Server Room: Trillions for AI, but the Heart of the Business is Faltering
• The Summer Reset: Why Doing Nothing is Your Most Strategic Move
• That Swindon Lot: What David Brent Taught Me About In-Groups, Out-Groups, and the Human Quest for Belonging
• AI Has Information. But Does It Have Wisdom?
• Middle Management Development: How to Stop Burnout and Start the Breakthrough