Why Principal's CHRO Says AI + EI = ROI

Principal Financial Group’s AI Strategy: A Dual Focus on Technology and Human Skills

Principal Financial Group has achieved a significant milestone: more than 90% of its approximately 19,000 employees have completed upskilling in AI fluency. For many organizations, reaching this figure would signal the end of a successful initiative. However, for Lisa Coulson, Senior Vice President and Chief Human Resources Officer (CHRO), this achievement represents only the first part of a larger strategy.

“On the one hand, we've upskilled more than 90% of our employees in AI fluency and data literacy so they can confidently use these tools in their day-to-day work,” said Coulson. “On the other hand, we're continuing to build human skills like empathy, communication, and trust-building so that as AI frees up time for more meaningful conversations with customers and colleagues, our people are equipped to engage with greater self-awareness and impact.”

Coulson believes that the organizations that stand out will be those that successfully combine strong technology acumen with well-developed human capabilities. These essential human skills include communication, collaboration, self-awareness, adaptability, curiosity, and critical thinking.

As a Fortune 500 financial services company with more than 147 years of operating history, Principal serves roughly 82 million customers across over 80 markets through its retirement plans, investments, and employee benefits offerings. In her role, Coulson leads the global HR strategy across this extensive footprint.

Principal Treats AI As An Enabler And An Augmenter

“We're approaching AI as an enabler of our people, not a replacement,” Coulson said. “That mindset is shaping how we think about talent today and going forward.”

This philosophy translates into practical action by embedding AI directly into everyday workflows. Rather than treating AI as a separate tool, Principal integrates it into the fabric of how work gets accomplished, enabling employees to move faster and dedicate their attention to higher-value, judgment-driven tasks. As Coulson put it, “AI can surface insights and improve efficiency, but people are still accountable for decisions and outcomes.”

Coulson offers a clear perspective on what this accountability will require in the near future. “Looking ahead one to three years, that balance becomes even more important. As AI becomes more embedded, and as more advanced capabilities begin to take on larger parts of workflows, the nature of work will continue to evolve. Roles will shift, new roles will emerge, and the expectation will be that employees are not just using AI, but working alongside it, guiding it, supervising it, and ensuring quality, trust, and compliance.”

Insights Without Judgment Don't Create Value

When asked whether AI and emotional intelligence are at odds, Coulson rejects the premise. "I think AI and EI have to be synchronous if we're going to truly serve customers the way they expect to be served," she said. "AI is incredibly powerful when it comes to speed, scale, and surfacing insights, but those insights only create incremental value if they're applied with human judgment, empathy, and context."

Across dozens of interviews with CHROs and talent development leaders, this same idea keeps surfacing. I like to refer to it as an "equation," which says that AI + EI = ROI.

Remove EI from the equation, and you get ideas without discernment, speed without judgment, and work without humanity. Remove AI from the equation, and it becomes nearly impossible to keep up with your competitors on efficiency, production, and innovation.

"That's why we're also investing in the skills that enable good judgment: adaptability, curiosity, communication, and leadership so employees can apply insights in ways that are thoughtful, responsible, and grounded in trust," Coulson explained.

EI Training Reaches Every Level, Not Just the Top

At many companies, relationship skills training is a perk reserved for high-potential executives. Principal builds it in enterprise-wide. "We focus on skills like communication, collaboration, and self-awareness through leadership programs, coaching, assessments, and team-based learning so people can keep growing over time," Coulson said. "As we continue building AI literacy, we're putting emphasis on change management and a growth mindset."

For individual contributors and managers, those types of capabilities are integrated right into their core development experiences rather than offered as a separate track. Senior leaders go deeper through executive development, personalized coaching, and leadership programs that are designed, in Coulson's words, "to ensure our senior leaders are equipped to navigate complexity, influence effectively, and lead with both clarity and empathy."

The Pattern Coulson Noticed Long Before AI

Coulson’s conviction about the enduring importance of human skills is not a recent development. Her interest in emotional intelligence began decades ago, sparked by a recurring pattern she observed throughout her career. She explains, “I became interested in EQ in my career because I kept seeing the same thing play out. The toughest workplace challenges were rarely about technical skills. Talented people and strong teams struggled not because they lacked expertise, but because of communication breakdowns, limited self-awareness, difficulty navigating change, or a lack of trust.”

This consistent observation led her to a clear conclusion about what truly separates high performers from the rest. The most successful individuals were rarely those with the most impressive resumes or technical prowess. Instead, they possessed a combination of strong technical abilities and well-developed social and emotional competencies. Coulson noted, “At the organizations that consistently brought out the best in their people, the differentiator lay in human skills like empathy, adaptability, collaboration, and the ability to lead through change.”

What Leaders Can Take From Principal's Approach

For today’s leaders, Coulson’s experience offers a practical and actionable takeaway. The organizations that ultimately pull ahead are not necessarily the ones with the most advanced technology or the most talented workforce. The real competitive advantage lies in an organization’s ability to bring out the best in the people it already has. Investing in emotional intelligence training is a powerful lever that any organization can pull to unlock the potential of its talent.

This approach reframes the role of leadership in a technology-driven world. While technical skills are essential for getting in the door, they are not sufficient for long-term success. Coulson emphasizes this point, stating, “Technical skills may open the door, but emotional intelligence is what enables people to navigate complexity, build trust, and shape cultures where employees and businesses thrive.”

Kevin Kruse is the Founder + CEO of LEADx, an emotional intelligence training company. Kevin is also a New York Times bestselling author. You can take his free EI Assessment here. It’s psychologically validated and gives you a score breakdown across each of the four core skills.