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AI may be all the rage, but soft skills still a priority for employers

July 2026 employment law letter
Authors: 

Tammy Binford

The rise of artificial intelligence (AI) seems to dominate all conversations about the world of work. So, jobseekers are understandably eager to tout their knowledge of the latest technology. But as important as AI is, employers still tout the value of communication, leadership, empathy, adaptability, and other soft skills.

Holding back AI?

Can a lack of human skills hold back employers’ ability to get the most out of AI? A recent study from workplace solutions provider International Workplace Group (IWG) says it absolutely can.

IWG surveyed 510 U.S.-based HR, recruitment, and hiring managers in April and found 90% of HR leaders believe failing to prioritize human capabilities is a risk to innovation. IWG says the results of the research show a new “human skills economy” in which empathy, judgment, creativity, and leadership are core to business performance.

IWG reports that most hybrid teams are already using AI tools, and organizations are providing AI training. But less than half of the HR leaders surveyed say they’re effectively closing the skills gap, meaning many organizations are lagging in effective use of AI.

The rapidly changing and tightening labor market leads employers to rethink the skills that drive performance. The IWG research identifies where HR leaders think humans remain essential:

·     65% say AI will never replicate human empathy.

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