The Predictive Index has released findings from its 2026 AI and People Leadership Survey, revealing that while 74% of CEOs and business leaders say their managers are "very confident" handling tough people conversations on their own, managers report needing more guidance, structure, and context — and many are turning to generic, public AI tools to close the distance.
74% of CEOs say managers are confident with tough conversations, but managers need more support.
Only 20% of managers prefer to prepare difficult conversations without a framework or coaching.
42% know what to say but struggle with how to say it.
72% of managers find public AI tools useful for people conversations.
44% admit entering employee names or performance details into public AI tools.
Only 45% of organizations have formal AI policy for managers' people matters.
Delivering criticism constructively (22.8%), anticipating an employee's reaction (19.5%), and staying objective (14.3%) rank as managers' top blind spots. Yet just 7% of leaders identify objectivity as a top challenge for their managers. Seventy-two percent of managers say public AI tools are useful for preparing for people-related conversations, and 44% admit to entering employee names or performance details into those tools. Only 45% of organizations have a formal written policy governing managers' use of AI in people matters, even as 68% of leaders say they're concerned about employee information being entered into public AI tools.
Ninety-two percent of leaders say it's "essential" or "very important" that managers tailor their feedback approach to how each employee receives and processes feedback. Seventy-six percent of managers say behaviorally tailored insights would help them prepare for employee conversations. Seventy-eight percent of leaders say they would trust AI coaching more if it incorporated validated behavioral insights about the employee.
"Leaders trust their managers, and that trust isn't misplaced," said Anthony Belluccia, I/O Psychologist at PI. "What our research shows is that trusting a manager and knowing they're set up for a specific hard conversation are two different things. Managers are more aware of where they need support than their leaders are, and addressing those needs starts with understanding what's driving them."
"Seventy-two percent of managers already reach for AI before a hard conversation. That's not the problem," said Joel Pipher, VP of AI Transformation at PI. "The problem is that AI knows nothing about the person on the other side of the table. Same model, same generic answer for every manager who asks. What they need is AI that puts that insight in front of them in the moment, not buried in a report."
About The Predictive Index
The Predictive Index (PI) has been advancing behavioral science since 1955, translating what drives people at work into behavioral intelligence organizations can act on. PI's platform brings validated behavioral and cognitive data into every stage of the employee lifecycle, from hiring and team design to management and leadership, giving organizations clarity and confidence in the people side of business. PI has one of the largest validated behavioral datasets in the world, spanning millions of assessments across 90+ countries.
