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Challenges and Solutions for Leadership in 2025

Challenges and Solutions for Leadership in 2025

by MDI & ARS Academy | Jan 14, 2025 | Best Practice, Leadership in the digital transformation, Leadership Tips | 0 comments

Challenges and Solutions for Leadership in 2025

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

Leadership challenges and solutions in 2025

In an increasingly complex and uncertain world, companies and their leaders face numerous challenges. In collaboration with the ARS Academy, we conducted the Management Survey 2024. It offers valuable insights into the key issues that companies are currently dealing with and will deal with in the future.

It shows how companies can address internal and external challenges, with a particular focus on talent acquisition and work-life balance. Learn more about the results of the management survey in this blog post!

Key challenges: from talent management to digitalization

1. recruiting and retaining talent

For 67% of leaders, attracting and retaining qualified employees is the biggest challenge. The shortage of skilled workers, which is further exacerbated by demographic change, also makes it increasingly difficult to find suitable talent and retain them in the company in the long term.

Smaller companies with up to 250 employees are facing particular challenges. They often have fewer resources than large companies and must therefore be more creative to be perceived as attractive employers and to compete with the offers of larger companies.

2. Economic uncertainty

More than half of the respondents (54%) cite economic uncertainty as a problem that makes their planning more difficult. Volatile markets, geopolitical conflicts and rising operating costs mean that companies need to develop more flexible strategies.

3. Technological change

52% of companies see technological change as a key challenge. While digital skills are becoming increasingly urgent, investments in new technologies are prioritized more highly by smaller companies (65%) than by larger companies (41%).

4. Sustainability and ESG

Sustainability is also becoming more and more of a priority, mainly due to issues such as climate change and new legal requirements. 43% of companies have incorporated ESG strategies into their day-to-day operations, but only 12% reward the achievement of these goals with management bonuses.

This shows that sustainability is an issue for many companies, but is not yet fully anchored for all of them.

Key challenges: from talent management to digitalization<br />

Work-life balance: aspiration and reality

Our survey makes it clear that the work-life balance of employees is a top priority for leaders: 93% consider it to be “very important” or “somewhat important”. Interestingly, only 71% of leaders see their own work-life balance as equally fundamental.

This disparity shows that some leaders need to strengthen their role model function when it comes to self-care in order to promote a sustainable corporate culture in the long term.

The most important measures for a better work-life balance

  1. Remote work and home office: 85% of companies offer alternative working methods. We see this as a clear sign that adaptable workplace designs are becoming more and more common.
  2. Flexitime models: 82% offer flexible working hours to help their employees achieve a better work-life balance.
  3. Regular appraisals: 81% of leaders also use feedback sessions to identify and adapt to employee needs.
  4. Supporting physical and mental health: In addition to fitness programs (56%), offers such as stress management courses or access to psychological counseling (47%) play a central role. These measures help to promote the long-term well-being of employees.

The 4-day week as a pilot model

It is interesting to note that 12% of companies have already introduced a four-day working week – a model that could increase productivity and employee satisfaction in the long term. This change could also serve as a forerunner for further flexible working time models.

work life balance

Strategic solutions for the challenges of continuing education and adaptability

63% of companies rely on training to prepare employees for future challenges. Larger companies in particular (over 250 employees) focus on team-building measures and employee retention programs (66%).

50% of companies also plan to adapt their strategies to be able to react more flexibly to external influences. In small companies, this figure is as high as 59%, which demonstrates their agility.

Technological innovations

In addition to the introduction of digitization strategies (40%), technical training (55%) and access to modern hardware and software (51%) are essential components of the transformation efforts. Nevertheless, only 30% of the companies surveyed have implemented an AI strategy, which indicates a great need for further development in this area.

Leadership skills 2025: humanity and technology in harmony

The leaders of tomorrow will need a wide range of skills. According to our survey, the most important skills are:

  • Communication skills (62%): Crucial for leading teams and managing crises.
  • Leadership (59%): Essential for providing clear vision and strategy.
  • Problem-solving (48%): Critical for finding innovative solutions to complex problems.
  • Emotional intelligence (43 %): This is essential for fostering empathy and trust within the team.

These skills are crucial for overcoming the challenges of an increasingly complex and dynamic working environment and inspiring employees. Leaders must not only be technically competent, but also able to guide their teams through change and uncertainty.

Conclusion: A new balance between people and technology

The results of the 2024 management survey show that leaders need to prepare for a world in which both technological innovation and employee needs are important.

Successful leadership means remaining flexible, promoting talent, and always putting employees first. Striking the right balance between efficient work processes and a sustainable corporate culture will make all the difference – for your company and for your employees.

MDI Management International

MDI Management International

MDI is a global leader in leadership development with 60 years of experience. With offices worldwide and a network of over 250 international consultants and trainers, MDI offers training and consulting services in various languages. The company designs and implements customized programs for leaders at all levels, high potentials, experts, project managers, and salespeople – locally, internationally, and globally.

ARS Academy

ARS Academy

The ARS Academy is Austria’s largest private provider of professional seminars and is represented in all federal states. Around 1,000 selected top experts from business, practice and law pass on their knowledge in around 1,200 different events to around 18,500 participants per year.

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The Lasting Impact of Leadership Horizon – Meike’s Perspectives

by Meike Hinnenberg | 2. July 2025 | Leadership Impact, MDI Inside, Short Knowledge Bits | 0 Comments

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AI in Leadership in 2025: Impressions from Leadership Horizon

by Christoph Wirl | 1. July 2025 | Leadership and AI, MDI Inside, Short Knowledge Bits | 0 Comments

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Leadership and AI: Between Responsibility and Opportunity

by Marina Begic | 6. May 2025 | Digital Transformation, Leadership and AI, Leadership Tips | 0 Comments

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AI Hears; Humans Listen: Become a Master of Attunement

by Hamza Khan | 18. April 2025 | Digital Transformation, Leadership and AI, Leadership in the digital transformation | 0 Comments

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Success Through Change: How to Stay Oriented During Transitions

by Anita Berger | 14. April 2025 | Impuls series, Leadership Impact, Leadership Tips | 0 Comments

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Aligning Training Goals with Organizational Business Objectives

by Marcin Swierkocki | 10. April 2025 | eLearning, Learning Transfer, Short Knowledge Bits | 0 Comments

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4 Tips on How to Shape Change Processes as a Leader

by Anita Berger | 3. April 2025 | Impuls series, Leadership Impact, Leadership Tips | 0 Comments

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MDI’s Leadership Lab: Unlocking the Future of Leadership Training

by Florian Biedermann | 25. March 2025 | Leadership and AI, Leadership in the digital transformation, MDI Inside | 0 Comments

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AI Transformation: How Companies Need to Adapt

by Gunther Fürstberger | 12. February 2025 | Digital Transformation, Leadership and AI, Leadership Tips | 0 Comments

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No Success Without Diversity: Why It Matters

by ARS Academy, MDI | 5. February 2025 | Best Practice, Leadership and AI, Leadership Tips | 0 Comments

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Mastering Communication: The Why, How, and What

Mastering Communication: The Why, How, and What

by Marcin Swierkocki | Jan 14, 2025 | Agile Leadership, Leadership Tips, Short Knowledge Bits | 0 comments

Mastering Communication: The Why, How, and What

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

Mastering Communication: The Why, How, and What

Have you ever heard an employee say something like, “I won’t be able to meet the upcoming deadlines”? While the words may seem straightforward, they often hint at deeper underlying concerns. In this article, I delve into this statement through the lens of two well-known iceberg models, uncovering what lies beneath the surface…..

The iceberg models of Paul Watzlawick (of communication) and William Ury’s/Roger Fisher’s and Daniel Shapiro’s (positions vs. interests) share a common structure that emphasizes the elements of human interaction. Aligning these two models provides a deeper understanding of the interplay within communication strategies.

Watzlawick’s communication iceberg model:

  1. Above the surface – Fact-based communication: The pure content of the communication, such as words, facts or data communicated to the interlocutor. E.g.: ‘I want to complete this project by the end of this week’.
  2. Below the surface – Relational communication: The unspoken and emotional dynamic that underlies the actual content, such as tone, trust, non-verbal signals, and power. E.g.: A leader’s tone of voice suggests frustration or urgency, which influences how the message is received.

Ury and Shapiro’s iceberg model – positions vs interests:

  1. Above the surface – Positions: Explicit messages about what someone wants. Positions are noticeable but do not yet reveal underlying motivations. E.g.: ‘I need a 10% increase in my head count next year’.
  2. Below the surface – Interests: The deeper needs, desires, fears, and motivations that drive a position. Interests often refer to humanistic needs such as autonomy, recognition, or security. E.g.: Asking for a higher amount of workers next year reflects my need for recognition, security, or justice.

Both models emphasize the importance of understanding not only what is visible, but also what lies beneath the surface in human interaction. They agree with each other to the following extent:

Watzlawick’s iceberg model of communication

Ury’s/Shapiro’s iceberg model – positions vs interests

Fact-based communication (above the surface): Focuses on the pure content of the communication, such as words, facts or data.

Positions (above the surface): A clear request or message about what is wanted.

Relational communication (below the surface): Focuses on implicit dynamics such as tone, emotions, trust and the quality of the relationship.

Interests (below the surface): The deeper needs, concerns and motivations driving our positions.

Key findings: What is said is influenced by relational aspects (e.g. trust, power). Ignoring relational dynamics quite often leads to misunderstandings.

Key findings: Specific positions often mask hidden interests. Only an understanding of mutual interests can lead to a more constructive outcome.

Communication models

Practical implementation (1):

1. Communication while staying in touch with your Stakeholders:

Factual communication (based on your position) only serves as a starting point in reaching a solution, while relational communication (tone, trust) determines how your position is perceived. Recognizing deeper interests guides relational communication to build rapport and mutual understanding.

2. Conflict resolution:

Relationship breakdown (the hidden dynamic in Watzlawick’s model) results from long-established positions (evident in the Ury/Shapiro model). Addressing relational issues (e.g. respect, autonomy) generally leads to the discovery of shared/agreed interests.

3. Key questions so as to ‘dive below the surface’:

  • What is being said by the other side? (Positions/facts)
  • How is it being said? (Relationship dynamics)
  • Why is it being said? (Interests/basic motivations).

Practical implementation (2): Conflict in the workplace.

Scenario: An employee says: ‘I am unable to meet the upcoming deadlines’.

  • Watzlawick’s perspective: The actual message is failure to meet a deadline; the relational message may (our assumption) include frustration or fear of being perceived as an incompetent co-worker.
  • Ury’s/Shapiro’s perspective: The position is to refuse to meet a deadline; the interest may be to avoid burnout, being overloaded, or the need for greater clarity on priorities.

Conclusions:

By addressing both relational communication (e.g. showing empathy, and understanding people’s psychological needs) and underlying interests (e.g. redistribution of tasks or a new role in the team), a leader is able to solve issues/problems more effectively than by merely focusing on positions or factual messages.

Marcin Swierkocki

Marcin Swierkocki

Trainer, Coach & MDI Partner

Marcin Swierkocki works as an HR business consultant who has specialized in L&D, change- and project management. He brings over 25 years of international experience in change management and operational development with him. His personal motto is influenced by Viktor Frankl: ‘Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth…’. His personal inspiration comes from his optimistic and positive character and by draining the energy that successfully supporting others gives him.

  • LinkedIn

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Self-Leadership: Harnessing the Power Within

Self-Leadership: Harnessing the Power Within

by Meike Hinnenberg | Dec 17, 2024 | Best Practice, Leadership Tips, Short Knowledge Bits | 0 comments

Self-Leadership: Harnessing the Power Within

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

Self-Leadership: Harnessing the Power Within

In today’s fast-paced and unpredictable world, we often lack control over external circumstances or how others treat us. However, we possess one powerful tool: the ability to choose how we respond.

This doesn’t mean conforming to every situation or forcing solutions. Instead, self-leadership focuses on understanding and managing our thoughts and emotions —skills that can profoundly influence our relationships and leadership abilities.

The Core of Leadership: The “Me” Circle

Imagine leadership development as a ripple effect. At the center lies the self—the starting point for influencing all outer circles: individuals, teams, organizations, and the wider environment. The “me” dimension is foundational.

How we connect with others or design organizational systems stems directly from our inner state. For now, let’s focus on this pivotal core: self-leadership.

Key Dimensions of Leadership we Focus on

Empathy vs. Sympathy: Choosing Connection

Empathy is a cornerstone of self-leadership, fostering connection, while sympathy can unintentionally create distance. According to Brene Brown, empathy encompasses:

  • Perspective-taking: Seeing the world through someone else’s eyes.
  • Non-judgment: Withholding judgment about others’ experiences.
  • Emotional recognition: Identifying and validating others’ emotions.
  • Feeling with others: Truly sharing in their emotional experience.

Leaders often struggle with vulnerability, imperfection, and the uncontrollable aspects of life and relationships. Our biological wiring doesn’t help—we’re programmed to detect and react to potential threats, a survival mechanism that can hinder connection. Recognizing and addressing this is key to empathetic leadership.

Cultivating “Response-Ability”

While we can’t control external events, we can control how we react—our “response-ability.” Tools like deep, conscious breathing and regular meditation can help calm the brain’s alarm system, creating space between stimulus and response. Gratitude practices can shift our focus toward the positive, reducing the weight of perceived threats.

These habits empower leaders to make decisions thoughtfully, even amid complexity and conflicting needs.

Leadership Decision-Making: Navigating Complexity

Making decisions as a leader is inherently challenging. It’s impossible to satisfy everyone, and every decision invites criticism. Understanding this reality helps us navigate conflict, a normal part of organizational life

Decisions will always carry trade-offs, but by including diverse perspectives and maintaining self-awareness, leaders can strive for the best possible outcomes.

Embracing Your Inner Team

Self-leadership also involves recognizing and harmonizing the many voices within us—our “inner team.” Each voice represents a perspective or trait, such as the Perfectionist, the Empathetic, or the Fearful. Listening to and integrating these voices strengthens decision-making and communication.

Embracing your inner Team

Practical Exercise:

Start by asking yourself a question, like, “Should I address this conflict?” Visualize the various inner voices involved and assign them roles or characters. For instance:

  • The Perfectionist: Insists on flawless execution.
  • The Fearful: Warns of potential risks.
  • The Rational: Seeks logic and balance.
  • The Angry: Advocates fiercely for boundaries.

Identify which voices are louder or more resistant and allow each to speak. Then, appoint an “inner team leader” to mediate, ensuring all perspectives are heard and integrated into a coherent plan.

In my own inner team, I balance voices like the empathetic, the strong, the fearful, and the rational. Each one has value, and my inner leader works to harmonize them, fostering collaboration and guiding decisions that reflect the best of all perspectives.

Conclusion

Self-leadership isn’t about perfection—it’s about awareness and intentionality. By cultivating empathy, practicing response-ability, and embracing the wisdom of your inner team, you can make decisions with clarity and confidence.

When we lead ourselves effectively, we empower others to thrive, creating ripples of positive change that extend far beyond the “me” circle.

Meike Hinnenberg

Meike Hinnenberg

Learning & Development Consultant

Meike Hinnenberg is a trainer at MDI Management Development GmbH and specializes in communication, conflict management, diversity & inclusion, and lateral leadership.

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The Right Questions at The Right Time – Thinking From Within!

The Right Questions at The Right Time – Thinking From Within!

by Marcin Swierkocki | Dec 9, 2024 | Leadership Tips, MDI Inside, Training Insights | 0 comments

The Right Questions at The Right Time – Thinking From Within!

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

The Right Questions at the Right Time – Thinking From Within!

It is not easy to find oneself in a world based on chaos, noise, and incoherence of values. Out of the needs flowing in one’s mind, it seems impossible to choose the one the most hidden, most needed, most personal, most genuine, and authentic. For what reason is it so difficult to delve into oneself?

Year-End Reflections: Embracing Change and Uncertainty

The end of the year makes us reflect and think about what we’ve done and achieved. However, it’s also a time for conclusions and a summary of our activities. The current times have made us realize that everything can change in the blink of an eye.

The image of the reality we perceive has been distorted in one way or another – AI applications, globalization, integration, or maybe decentralization. Who knows? And what can you do about that?

Finding Purpose: A Grounded Start to the New Year

Today’s times have catalyzed, often ground-breaking, changes in the way we communicate both internally and with our customers. Therefore, in order not to ‘go crazy,’ it is helpful to have your answer to the question – ‘why’ do I do what I do? For me, it gives me coherence between how I think and what I do, the inner peace and joy that comes from feeling that I can use the potential I have been given for worthy causes.

Hence, let’s not just focus on the what and the how because this allows neither reflection nor having the right perspective. Without this, life just seems to be shallow! And that’s not the right way to start New Year…

Unveiling Purpose: Integrating Models for Lasting Impact

Discovering your “why” can truly transform your life and work. It provides a sense of clarity and purpose that fuels real motivation and helps you stay authentic, even through challenges.

It’s not just a path to personal success; it’s the heart of building something meaningful and lasting – a business or career that feels deeply fulfilling and genuinely worthwhile.

I will take a moment below to zoom in on how the two models I know from the training setup can work together. This is my interpretation, and any comments or feedback will be highly appreciated.

Unveiling Purpose: Integrating Models for Lasting Impact

The Dilts Logical Levels framework and Sinek’s Golden Circle

are both correlated, as they address the layers of meaning/purpose of human actions. Each of these models explores the why, how, and what of human actions, albeit with a slightly different focus.

Here’s how they work together:

1. Why (Sinek) ↔ Identity and Purpose (Dilts)

The Golden Circle – Why, in Sinek’s case, is the purpose and cause that drives individuals and organizations. It is the reason behind our actions, beyond the outcome, and provides us with a sense of what we do!

Logical levels – Identity and Purpose. At Dilts’, the Identity level represents ‘Who’ we are, encompassing our beliefs about ourselves and our deeper purpose. At the top of his pyramid, purpose extends to a relationship with vision and mission (in the organizational context), often linked to our contribution to a larger system.

Both frameworks represent an overarching vision and motivation, guiding everything else.

WHY WHAT HOW

2. How (Sinek) ↔ Beliefs, Skills and Behaviors (Dilts)

The Golden Circle – How, in Sinek’s case, defines the process and methods. It is how we bring purpose to life, often through unique processes, values, or distinctive characteristics.

Logical levels – Beliefs, skills, and behaviors. In Dilts’ model, Beliefs inform what we believe is possible or worth the effort (shaping the How), while skills refer to our capabilities and strategies used to implement actions. Behaviors are the actual actions taken, representing the translation of beliefs and our skills into something tangible!

This Dilts level relates to Sinek’s How as it defines our approach, skillset, and actions that make the goal achievable. Beliefs drive motivation, skills enable action, and behaviors embody these values in practice.

3. What (Sinek) ↔ Environment and Results (Dilts)

Golden Circle – In Sinek’s terms, What is the outcome, the actual product, service, or result achieved? It is what people see and is often the most tangible aspect of the organization or person’s work.

Logical levels – Environment and results. Dilts places the environment as the lowest level where the activities that shape outcomes occur. It is the place where the results are observed, evaluated, and adjusted.

Both models represent concrete, visible output experienced by others. In both frameworks, the What is a visible manifestation of deeper levels shows how purpose and beliefs are ultimately realized.

Conclusions:

Sinek’s Golden Circle

Dilts’ logical levels

Why    

Purpose and Identity

How

Beliefs, Skills, and Behaviors

What

Environment and Results

Aligning these models allows us to understand not only the outcome (What) but also the deeper motivations standing behind our actions (Why) and processes (How) that drive our behavior. This synergy is particularly useful for leaders to properly guide their co-workers and organizational development.

Marcin Swierkocki

Marcin Swierkocki

Trainer, Coach & MDI Partner

Marcin Swierkocki works as an HR business consultant who has specialized in L&D, change- and project management. He brings over 25 years of international experience in change management and operational development with him. His personal motto is influenced by Viktor Frankl: ‘Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth…’. His personal inspiration comes from his optimistic and positive character and by draining the energy that successfully supporting others gives him.

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by Gunther Fürstberger | Oct 31, 2024 | Best Practice, Leadership and AI, MDI Inside | 0 comments

Efficiency with AI in Leadership Development

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

Efficiency with AI in Leadership Development

Perhaps the first AI hype is already over, but it paves the way for a more realistic view. AI transformation is progressing at different speeds in different industries.

However, the training industry is among the pioneers: machine learning has enormous potential to make human learning more efficient, effective, and cost-effective. Since 2023, we have been experimenting intensively with artificial intelligence as a provider of leadership development and are happy to share our experiences.

AI in everyday business: a fixed routine in meetings

For a year and a half, AI has had a permanent place in every company management meeting. At least one current topic is supplemented by an LLM (Large Language Model) with a perspective or recommendation.

This practice has proven itself and enables more informed decisions with minimal time investment. Experiments with automatic logging, on the other hand, have proven less successful.

In August 2023, we launched AICO (Artificial Intelligence Co-Trainer), which has since been supporting us with energy exercises, music selection, transfer tasks, and as a knowledge source for participant questions in the seminar. Shortly after that, we tested the first ChatGPT role-playing game in a seminar and were impressed by the positive participant feedback. Initially, we provided the prompts as a transfer task.

AI transformation roadmap: planning at the company level

In January 2024, we launched a company-wide AI transformation roadmap. This means that we plan how AI can be used in key areas of the company every quarter to ensure that the entire organization is involved in this development.

In our OKR (Objectives and Key Results) planning meeting for the second quarter, we determined that no offer would be sent to customers without an AI component that covers at least 10% of the learning journey. Customers will still have the option to book the AI components that were previously free of charge.

AI transformation roadmap: planning at the company level

AI Lab: A role-playing center for real-world scenarios

In the third quarter, we plan to set up an AI lab on our website where all applications can be tested and used in a bundled form. This lab includes a role-playing center for various leadership communication situations. Participants take on the role of the leader, while the AI takes on the role of the employees.

A keyboard is no longer necessary – the role play is done by speaking and listening. After completion, the leaders receive targeted feedback that refers to the learned communication models. The role play can be repeated as often as desired, not only in the seminar but also when the situation arises in real life.

The future of learning: from 2D avatars to “superpowers”

Just as e-learning has replaced knowledge transfer in training over the last 20 years, AI has the potential to revolutionize skills development today. Currently, role-playing on the phone is still purely auditory, but soon visual avatars will be integrated as role-playing partners.

AI applications with 3D avatars for virtual reality glasses already exist. However, we suspect that 2D avatars will initially be used as learning partners because they are easier to use. These avatars are already supported by so-called “superpowers”. For example, Hume.ai gives AI coaches empathy and enables feedback on the current emotional state of the role-playing participant using voice analysis.

Real avatars as knowledge messengers and the next step in learning transfer

We are experimenting with “real avatars” of trainers who are available to participants as knowledge messengers after the seminar. This new type of learning transfer support enables agile learning when needed. Despite all efforts, learning transfer has often been a neglected topic in the industry.

Our leadership agent project (“LAgent”) is proving more challenging: we are developing an AI agent that can proactively pursue short-and long-term goals together with the leader. However, the LLMs currently available are still limited in their memory function, which would be necessary for responsible co-leadership. But this is precisely where development is progressing rapidly, and it is becoming increasingly easier to develop AI agents.

Conclusion: AI transformation in learning and development

Overall, the AI transformation in the area of learning and development is a fascinating field and is contributing significantly to the development of organizations and, by extension, society.

Mag. Gunther Fürstberger

Mag. Gunther Fürstberger

CEO | MDI Management Development International

Gunther Fürstberger is a management trainer, author and CEO of Metaforum and MDI – a global consulting company providing solutions for leadership development. His main interest is to make the world a better place through excellent leadership. He has worked for clients including ABB, Abbvie, Boehringer Ingelheim, DHL, Hornbach, PWC and Swarovski. His core competence is leadership in digital transformation. He gained his own leadership experience as HR Manager of McDonald’s Central Europe/Central Asia.  At the age of 20 he already started working as a trainer.

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