PI Study Finds CEOs Overestimate Manager Readiness as AI Changes Difficult Conversations

As managers increasingly turn to AI for help with people conversations, new data from The
Predictive Index reveals a widening gap between what managers actually need and what
generic AI provides.

WESTWOOD, Mass., Aug. 18, 2026 /PRNewswire/ -- The Predictive Index (PI), the behavioral intelligence platform used to hire top performers, develop effective managers and retain your people, today released findings from its 2026 AI and People Leadership Survey. The results reveal 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.

Key findings from the report include:

• Only 20% of managers say they prefer to prepare for a difficult conversation on their own, without a framework, a coaching guide or input from HR. Nearly half (42%) say they know what they want to say but struggle with how to say it.
• 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.

"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."

PI researchers note that the same dynamic shows up anywhere managers turn to AI for help with a person rather than a task, including hiring, onboarding, 1:1s and promotions. These are moments where generic AI tools, trained on broad patterns rather than the individual involved, tend to produce the same advice for every manager who asks.

The disconnect between what managers need and the support they receive mirrors broader workforce trends. A Gartner HR survey released this spring found that just 39% of employees agree their manager is effective at providing clear developmental feedback, even as 47% of managers report working harder than they did a year ago.

Leaders and Managers Agree Generic Advice Isn't Enough

The research found that managers want guidance tailored to the specific employee, not generic advice:

• 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.

"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."

Building on more than 70 years of validated behavioral science, PI is exploring new ways to help organizations bring personalized behavioral insights into the moments that matter most for managers and employees. To see the full report, visit: http://predictiveindex.com/ai-leadership-report

About the Survey
The Predictive Index AI and People Leadership Report was conducted in July 2026 among two national samples of 399 managers and 208 CEOs/and business leaders across various industries, job levels and generations.

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. Its EFPA-certified methodology is recognized globally for predicting workplace performance. As AI reshapes how organizations make people decisions, that scientific foundation only grows more valuable. Learn more at www.predictiveindex.com.

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SOURCE The Predictive Index