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People and Purpose: The era of Industry 5.0

by Simon Kent | Jul 29, 2025

Dr Naeema Pasha, Visiting Fellow, World of Work Institute, Henley Business School reflects on their recent conference.

As we enter the age of human-machine collaboration, the world of work is changing beyond all recognition. With technology – and AI in particular – continuing to advance at such a rapid pace impacting businesses so much, it is a daily challenge just to keep up. But in the race to stay ahead and adopt innovative technology, are leaders in danger of losing focus and forgetting about people and purpose? Have business ethics and responsible usage been overlooked in favour of quick wins and efficiency gains?

These were some of the big questions debated in our recent Leadership Futures conference, hosted by the World of Work Institute. And as referenced by all of our speakers, purpose and the impact of technology on people are more crucial than ever to ensure business success. For all the benefits that AI can bring, unless its implemented responsibly and with a ‘humans-in-the-loop’ design application, it can do more harm than good.

But we all agreed that this is the tricky part. It requires businesses to be agile and adaptive in their leadership approach. It becomes a balancing act between risk and reward. What is the impact on people, reputation, trust – the list goes on. The late Charles Handy, pioneer on management education and leadership put it well when he said:

The companies that survive longest are the ones that work out what they uniquely can give to the world, not just growth or money but their excellence, their respect for others, or their ability to make people happy. Some call those things a soul.”

This perfectly captures the belief that a company’s true essence and longevity come from its purpose and positive contribution to society. And this is something that AI should not eradicate. Instead it calls for leaders to double-down on creating true psychological safety for workers and the inspirational vision necessary for their teams to perform in an increasingly AI-centric world.

Optimistic but overwhelmed

The importance of leading from the top was brought into stark reality by the findings of our recent survey into feelings about AI in the workplace. Despite more than half (56%) of full-time workers in the UK feeling optimistic about the benefits of AI at work, just under two-thirds (61%) find it overwhelming to keep up with the rapid pace of AI technology advancements. This was a view largely shared across the ages and sectors we surveyed. It is clear that future of work is not about choosing between humans and machines but about moving to a strong focus on how to create effective synergy between the two.

Indeed, as AI and automation begin to master the ‘science’ of optimising processes, tracking metrics, and allocating resources, the uniquely human ‘art’ of leadership becomes paramount. As routine work becomes consumed by AI, people need to understand the impact it has on their roles and how to use it effectively. Transparency and responsible usage will be key as human roles evolve to possibly become more complex, more creative, more emotionally demanding and require more critical thinking. 

Ensuring responsible AI integration

AI is here to stay whether we like it or not. What will make the difference between success and failure is ensuring it serves people and meets business purpose. 

As covered during our conference and in the Leadership Futures report ‘Harnessing Technology for Human Progress’, the current pace around AI has led many to dive into implementation without proper planning or considering organisational needs. You could say purpose and people are being pushed out in favour of profit.

But identifying and articulating the need for AI, and making the business case are critical. Without a clearly defined use case, projects risk creating problems that don’t exist or not aligning with organisational priorities. The consequences of this can be far reaching – from damaging worker trust and loyalty, impacting external reputation or even leading to data security issues. 

Leaders must therefore focus on areas where AI can address specific challenges or unlock opportunities, ensuring that the technology supports real and pressing business needs. With a tangible use case for AI, leaders can lay the foundations for organisation-wide acceptance and success as well as demonstrate AI’s value to all stakeholders – from employees to customers. 

Bringing clarity to change

When people see clear, practical benefits, that align with their values and expectations they are more likely to embrace change and support new ways of working. Articulating an effective use case can mitigate strategic risk and allow leaders to deploy AI sustainably and responsibly. Finding the right use case is both a technical decision and, importantly, a strategic imperative. It helps leaders to ensure that AI adoption is purposeful, impactful and aligned with both the organisation and workers’ needs.

We know that the potential for technology to unlock human creativity is immense, but it needs to be done with consideration and a conscience. True strategic leadership will be defined by the ability to navigate this duality to embrace technological opportunity with ambition while building the ethical and resilient frameworks needed to defend against its inherent risks. Putting people and purpose at the centre will be crucial to success, and ensure AI becomes a true business enabler rather than inhibiter.

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