Why Leaders Must Double Down on Trust, Connection & Psychological Safety

The future of work is here. AI is transforming how we operate, automating tasks we once thought were irreplaceable, and shifting workplace dynamics at an unprecedented speed. But amidst all the technological innovation, one thing remains unchanged: leadership is still about people.

At our recent Steople event, Redefining Leadership in the Age of AI, Hayden Fricke (Managing Director of Steople), Jon Whittle (CEO of CSIRO’s AI business Data 61), and Professor Pat Dunlop (Professor of the Future of Work Institute at Curtain University) unpacked this paradox—how AI is advancing, yet the demand for human connection, trust, and emotional intelligence in leadership has never been greater.

“AI is already here, but the need for human leadership is greater than ever. Leaders must deliberately focus on building trust, fostering emotional intelligence, and creating psychologically safe workplaces.” – Hayden Fricke

So, how do leaders future-proof themselves and their teams? It starts with deliberate action – understanding what makes teams thrive and using the right insights to shape leadership behaviours.

The Leadership Skills That Matter More Than Ever

Leadership has always been about guiding teams toward a vision. But in the AI era, employees aren’t just looking for direction—they’re looking for leaders who create environments where they feel safe to innovate, speak up, and stay engaged.

There are a range of capabilities that leaders need to consistently demonstrate. These include empathy, adaptability and curiosity. Leaders need to be able to create strong human connections through being authentic and genuine. Sometimes part of this is also being prepared to let your guard down and show vulnerability. These human-centred competencies are easy to say but hard to do, particularly if they don’t come naturally. Often sharing your vulnerability seems like weakness but as Brene Brown says, “vulnerability is a measure of courage; it is the ability to show up and be seen; it is the source of hope, empathy, accountability and authenticity”.

Leaders need help to develop these types of capabilities so that they become a central part of the way they show up daily.

The “Invisible” Barrier to High-Performance Teams: Psychological Safety

Imagine this: A team is working on a major project, and a new AI-driven system has been introduced to streamline their workflow. One of the employees notices a flaw in the system—a miscalculation that could cause a significant problem down the line.

What happens next reveals everything about that team’s culture.

If psychological safety is high, that employee will speak up, trusting that their leader will listen without judgment.
If psychological safety is low, they’ll stay silent, worried about looking incompetent or facing backlash.

That’s the difference between innovation and stagnation.

At our event, Jon Whittle highlighted this tension: “So much of getting stuff done in an organization is built on trusted relationships. AI can enhance efficiency, but it can’t replace the human foundations of a strong workplace culture.”

The challenge with trust and psychological safety is that leaders often overestimate the level of trust in their teams. They assume people feel safe to speak up—until a mistake is made and they realise no one flagged it earlier. Leaders need help to become more aware of the level of trust and psychological safety in their teams so they can implement targeted strategies to build these qualities and create an environment where team members feel heard, valued and empowered.

Final Thoughts: The Future of Leadership is Human

AI will continue to change how we work, but it won’t change the fact that people are the heart of every organization.

Leaders who double down on trust, connection, and psychological safety will be the ones who adapt, engage, and thrive in the AI-powered future.

The question isn’t just how AI will shape leadership – it’s how leaders will shape AI-powered workplaces.

As Professor Pat Dunlop said, “The leaders who thrive in this era will be the ones who embrace AI as an enabler while prioritizing human connection. It’s not AI vs. human—it’s AI + human.”

If you are ready to build a more human-centred leadership culture through the growth if AI in our workplaces, talk to Steople about how we can help you.