Are Businesses Ready for the AI Boom—or Being Blindsided by It?

In today’s AI-integrated workplace, 67% of employees say their jobs already involve artificial intelligence—and 56% report that their companies actively encourage its use. This finding, from a recent Owl Labs survey of 1,000 knowledge workers, reflects a growing dependence on AI tools like ChatGPT. Notably, Gen Z professionals are leading the charge: 70% describe themselves as “heavily reliant” on AI, often using it for decision-making, work tasks, and even life advice.

But this trend raises a key question: As the adoption of AI skyrockets, do current and future leaders fully understand its limitations? This article explores how workers are using AI, where it shines, and why it’s crucial to recognize where human intelligence still matters most.

How Gen Z Uses AI: Digital Native or Digital Dependent?

OpenAI CEO Sam Altman captured the generational divide best: “Older users treat ChatGPT like a search engine, but Gen Z treats it like an operating system.” Many younger users store complex prompts on their phones and consult AI daily for everything from work strategy to emotional support.

While AI can serve as a fast-thinking assistant and sounding board, experts caution against overdependence. Amanda Caswell of Tom’s Guide notes, “ChatGPT can help during tough moments, but it’s no therapist. It's a tool—not a compass for every decision.”

What AI Can—and Can’t—Do Well

AI’s power lies in synthesis and scale. It can process trillions of data points and generate responses at lightning speed. But its abilities stop short when it comes to real-world context, emotional nuance, and true innovation.

Process expert Sam Drauschak puts it this way: “AI doesn’t have a world model. It’s predicting patterns, not reasoning from experience.” AI platforms might confidently answer questions, but they can still hallucinate or misinterpret complex visuals or emotions. Stanford’s Louis Rosenberg describes this as “AI dyslexia”—the inability to fix perspective or interpret dynamic social cues.

For tasks that require empathy, gut instinct, or nuanced decision-making—like leadership, negotiation, or team-building—human insight still beats machine logic.

AI Is Fast, but It’s Not Foresightful

Real-world understanding is a major blind spot for AI, especially in evolving social or emotional situations. A Johns Hopkins study found humans outperform AI in predicting social dynamics—like whether someone’s about to cross the street or is mid-conversation.

Cognitive scientist Leyla Isik explains, “AI can’t yet follow unfolding narratives. It misses relationship cues and changing contexts—essential for anything from healthcare to hiring.”

In simpler terms: AI can read a data point, but it can’t always read the room.

Leaders Need to Use AI with Perspective

With more than two-thirds of workers using AI tools, business leaders must strike a balance between enthusiasm and responsibility. Over-reliance on large language models (LLMs) may accelerate work, but it can also reduce critical thinking and strategic depth.

Drauschak recommends viewing AI like a smart intern: “It contributes valuable ideas, but it still needs supervision.” This perspective helps leaders unlock AI’s value without surrendering human oversight.

Research supports this view. In forecasting challenges hosted by Metaculus, humans continue to outperform AI—though the gap is narrowing. Human intuition and lived experience still matter when making decisions, building trust, and understanding context.

Final Thoughts: AI Is a Powerful Partner, Not a Leader

AI is revolutionizing the workplace. From automating tasks to offering on-demand insights, it’s a tool that’s here to stay. But when it comes to leadership, strategy, and empathy—humans still lead the way.

If 67% of jobs now use AI, the next step is ensuring workers and leaders understand how to use it wisely. AI is not a shortcut to wisdom, but a powerful co-pilot for those who know its strengths and its limitations.

Want to thrive in the AI-powered future? Stay curious. Stay critical. And remember—technology may be fast, but humanity is what makes it meaningful.