AI drives surge in leadership skill demand

Leadership capability is gaining value in the labour market as organisations bring AI into day-to-day workflows. New data points to a growing premium on coordination and decision-making skills.

Analysis from Revelio Labs shows that roles requiring leadership skills have held up better than the wider market during the hiring slowdown. Job postings overall have fallen sharply since 2022, but those referencing leadership requirements declined by 8% year on year, compared with a 20% drop for roles without them.

The share of postings mentioning leadership has also increased, now appearing in more than 36% of listings. Employers appear to be focusing on roles that help maintain output and alignment as hiring tightens.

Pay data reinforces the shift: roles requiring leadership skills offer salaries around 40% higher than those that do not, controlling for seniority. This premium was close to zero between 2022 and mid-2023, suggesting demand has moved ahead of supply.

The increase is most visible in middle management. The share of postings that require leadership skills has risen faster here than at senior or entry level, pointing to an emphasis on translating strategy into execution as organisations adapt workflows.

The pattern also shows in roles with high exposure to AI. When routine tasks are automated, work shifts toward reviewing outputs, resolving issues and keeping processes on track. And this relies on judgement and coordination, even where formal management responsibility is limited.

‘When routine work is automated, human labour shifts toward oversight, judgement and coordination,’ Revelio Labs said. 

Leadership is appearing more often as part of the job itself, rather than something tied to seniority.

For learning and development teams, leadership capability is extending beyond formal roles into middle management and AI-exposed work.

It also sharpens the case for internal development. With a growing pay premium attached to leadership capability, hiring externally becomes more expensive, increasing the value of building these skills in-house.

As organisations invest in AI, demand is shifting toward roles that coordinate work, rather than execute routine tasks. The growing pay premium suggests leadership capability is in shorter supply.

Leadership demand by the numbers

• 36% of roles require leadership skills
• 40% higher salaries for leadership roles
• 8% drop in leadership roles vs 20% in non-leadership roles
• Middle management sees fastest growth in leadership requirements