Leading in an AI Age: Decision Making

How decision making has changed for modern leaders

AI has changed how organizations gather information, compare options, and forecast outcomes, making more data available for decision making. This is a powerful opportunity for leaders, but also a risk, as more data can cause confusion and be easier to misjudge.

SHL conducted research on over 1,600 leaders across a varied range of industries and regions to develop an AI leadership profile, consisting of four capabilities that define AI-ready leaders. This blog focuses on Decision Making.

What defines strong decision makers

AI-ready leaders do not simply accept what AI suggests, but understand every emotional, ethical, or organizational consequence of a decision, The final call is based on a combination of human judgment and AI efficiency.

Two competencies help measure decision making: ‘Assesses with wisdom’ and ‘Makes ethical decisions.’

Our research found these competencies bucked the wider trend in which senior/C-suite leaders typically outscore Director-level leaders. This highlights the importance of understanding your leaders as seniority doesn’t guarantee strong decision-making. At the top, greater pressure and complexity can reduce reflective judgment and ethical vigilance, making support to slow down and broaden perspective essential.

1. Assesses with wisdom

This competency combines logic, reasoning, and knowledge with discernment, experience, and an understanding of context. Strong decision makers do not just ask, “What does the data say?” They ask, “What does this mean here, for these people, right now?”

Interestingly, this competency needed the least development from all the competencies that made up our leadership profile, but still only 36% of leaders that scored highly. That suggests many leaders are already reasonably strong at this type of judgment, but there is still considerable room to deepen it.

2. Makes ethical decisions

This competency is about consistently doing the right thing, even when there is pressure to do otherwise. Leaders with this strength hold themselves to high ethical standards, consider rules carefully, consult others when needed, and model responsible behavior for those around them.

This competency also scored relatively higher across the population, with 43% of leaders scoring in the medium range. That indicates many leaders are on solid ethical ground, but not all are consistently operating at the highest level.

Becoming a stronger decision maker

Development in this area is about becoming more deliberate. Leaders can grow by inviting diverse perspectives earlier, especially from people who see the situation differently. They also learn where AI can provide most value and how to augment AI with human factors that algorithms cannot fully capture like motivation, cohesion, trust, and likely emotional reactions.

Leaders should also practice pausing to consider what AI cannot see: The human, emotional, and relational effects of the decision.

Development in ethical decision-making is about building the habits and norms that support ethical action in practice. That includes setting clear rules for responsible AI use, how outputs are checked, and how sensitive information is handled. Just as importantly, leaders should create psychological safety so others can speak up when they spot an ethical risk.

The leadership edge of judgment

Assessment data helps organizations see how leaders actually make decisions, rather than how they think they do. It can show whether leaders balance analysis with context, whether they consult widely enough, and whether they apply ethical principles consistently under pressure.

With these insights, organizations can identify decision-makers who are ready for bigger responsibilities, highlight where judgment may become too narrow, and reveal whether leaders are equipped to make responsible decisions with AI.

For HR, this creates a more practical view of leadership potential. Instead of only measuring outcomes, organizations can assess the thinking patterns behind those outcomes and use that information to guide promotion, succession, and development.

To learn more about assessing the decision making capability, and AI readiness, of your leaders, check out our latest webinar: AI-Ready Leaders: Driving Performance in an AI-Enabled World