'Emotional intelligence will define leaders in the AI era': Microsoft CEO Nadella

Microsoft CEO Satya Nadella has warned that in an era dominated by AI, technical expertise alone will not be enough to sustain leadership success. Emotional intelligence, he said, will be the defining skill for future leaders.

Speaking on the "MD Meets" podcast hosted by Axel Springer CEO Mathias Döpfner, Nadella stressed that cognitive intelligence, while still important, cannot replace the human ability to understand people and manage relationships.

“Leaders who lack emotional awareness risk underusing their own capabilities,” he said.

Nadella highlighted that as AI takes on more operational and analytical tasks, social intelligence skills like empathy, collaboration, and relationship management are becoming critical leadership tools.

When asked about the role of empathy in Microsoft’s return-to-office policies, he emphasized that human collaboration remains essential even in a technology-driven workplace.

“Although we encourage in-person interactions, we do not intend to impose rigid office mandates,” he said.

Microsoft’s push into AI has also led to structural changes in leadership. Rolf Harms, a key figure behind Microsoft’s cloud success, has been appointed as an advisor on AI economics, and the company has launched a superintelligence team to develop systems exceeding human capabilities.

Despite strong financial performance, Microsoft implemented layoffs this year aimed at operational efficiency rather than reflecting employee performance.

Industry experts note that Nadella’s focus on soft skills is already shaping workplaces worldwide.

As AI automates routine and technical tasks, creativity, emotional intelligence, collaboration, and problem-solving are emerging as the most valuable abilities.

Under Nadella, Microsoft has promoted a “growth mindset” culture, encouraging employees to move from a “know-it-all” approach to a “learn-it-all” mentality.

“While machines may excel at logic and data, the uniquely human abilities to connect, understand, and collaborate will be the differentiators that shape successful teams and resilient organizations in the years ahead,” Nadella said.