employee engagement

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Profitable employers have been found to be 7% more likely to use AI to enhance their employee experience, according to research by Top Employers Institute.

Its AI-Powered leadership: The blueprint for uniting human insight with intelligent technology report, which analysed data from more than 2,300 global participants of its HR best practices survey for 2025 across 125 countries and 26 industries, also found that profitable employers were more likely than their lower-performing peers to use AI to enhance the employee experience, and that they view AI as a tool to complement and elevate human capabilities, rather than replace these.

More than three-quarters (78%) now use AI in at least one business function, however, only a minority have translated its potential into scaled, human-centred value.

Nearly two-fifths (39%) see AI as an opportunity to enhance employee experience, rather than just a mechanism to cut costs, while 48% are already piloting, implementing, or have fully established a process for responsible AI deployment.

Top Employers Institute’s report also identified five pillars that define the traits of an AI-powered leader. These include digital confidence, ethical stewardship, human-centred design, systems awareness and applied empathy.

Adrian Seligman, executive board member at Top Employers Institute, said: “AI is redrawing the architecture of organisations faster than most leaders can adapt. The leaders who will thrive are those who can design systems where technology amplifies judgment, empathy, and purpose, underpinned by sound ethics.

“HR leaders have a responsibility to be the catalysts of this change, empowering senior executives and boards to harness AI in ways that truly augment human potential. Those that fail to redesign leadership for the AI era risk building faster systems on outdated foundations, hampering revenue growth potential.”