Business executives emphasize the importance of empathy in AI strategy

American Express leader says AI needs purpose and human empathy

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Artificial intelligence is often praised for its ability to analyze large volumes of data, automate tasks, and surface insights that escape human perception. Yet as the digital shift accelerates, an increasingly important factor is gaining traction: empathy. According to Anna Marrs, group president at American Express, empathy is the most under-hyped aspect of the AI transformation era. Speaking at the Fortune Most Powerful Women conference, she stressed the need to preserve human connection as companies integrate AI into daily operations.

This shift is more than sentimentality. Marrs mentioned Anthropic’s Claude as a chatbot with noticeably empathetic interactions. “He’s really nice to me,” she said. While light in tone, her comment reflects a growing interest in emotional intelligence embedded in digital tools.

Artificial empathy, AI designed to recognize and simulate emotional responses, is gaining traction in customer service and healthcare applications. Research shows users generally respond more favorably to emotionally attuned messages, though human interactions are still preferred in sensitive contexts. For now, AI may mimic empathy, but it does not replicate the full depth of human emotion.

Leadership in the AI era must include emotional intelligence

Business leaders are recognizing that AI transformation extends beyond systems and software. Paula Kerger, CEO of PBS, underscored the importance of trust and transparency in an era when many remain wary of artificial intelligence.

She pointed out that disclosing how AI is used within an organization builds credibility and shows respect for the public’s concern. “Some of us get so excited about the possibilities,” she said, “but you don’t think about how the public will think about that.” Her comments underscore a need for leaders to adopt an emotionally aware approach, not just a technical one.

A 2024 survey reported that 70% of executives now consider empathy and emotional intelligence essential to managing AI-driven change. In high-speed environments, empathy helps ensure that transformation aligns with both human and business needs.

Empathy doesn’t mean inefficiency: how leaders empower with precision

Empathy in leadership is often mischaracterized as a soft skill that hinders performance. Iris Yen, chief strategy and transformation officer at Wella, presents a different model: empower a few strategically placed individuals, rather than overhaul entire teams.

“You don’t have to change out everybody,” she said. “You just place those few people in the right spot.” Her strategy emphasizes reducing disruption by enabling select employees with clear direction, support, and cross-functional collaboration. In doing so, leaders can maintain continuity while sparking measurable change.

This lean approach to transformation is gaining momentum. Companies are moving away from blanket solutions and toward focused deployment of talent and tools, all while prioritizing employee stability.

The three Ps that define a successful AI transformation strategy

Amy Feirn of Deloitte outlines a clear roadmap for AI success: purpose, preparation, and positioning.

Purpose defines why AI is being introduced, whether to streamline operations or enhance customer engagement. Preparation involves the infrastructure, security, and computing power necessary to support advanced tools.

Positioning is where strategic communication and executive alignment come into play. It allows leadership to define expectations, set realistic goals, and track ROI. As Feirn noted, ROI in AI isn’t always direct. Some tools reduce customer churn. Others free up employee time. Knowing how to value those outcomes is part of positioning for long-term success.

These three factors help ensure that AI initiatives are aligned with organizational goals and deliver measurable results without losing human context.

As AI systems become more advanced, efforts to simulate empathy are improving. One study showed chatbots improved their emotional tone by nearly 39% in guided scenarios. But the underlying limitation remains. AI lacks authentic emotional experience.

There are risks in simulating care without accountability. Artificial empathy may blur the lines between genuine concern and programmed response, leading to ethical dilemmas in sectors where trust is central.

That’s why leaders like Marrs, Kerger, and Yen are emphasizing human connection in their AI strategies. In a competitive environment where technology can be copied or licensed, authentic empathy, and the culture that supports it, could be the most sustainable differentiator.

Sources:

Fortune