What do organizations need most in a disrupted, boundaryless age? More imagination.

The Era of Disruption and Opportunity

We live in a time of profound disruption and remarkable possibility. As traditional boundaries blur and technologies like artificial intelligence (AI) advance rapidly, it’s natural to feel a mix of anxiety and wonder. Both leaders and workers recognize the risks and opportunities inherent in these changes. With these advancements comes an extraordinary potential to enhance human performance—benefiting organizations, individuals, and society alike. However, seizing these opportunities requires a focus on nurturing critical human capabilities, particularly empathy and curiosity. These traits not only help counter anxiety but also fuel imagination and innovation.

For organizations and individuals to fully embrace this new landscape, they must scale and operationalize the development of these human attributes. Organizations that prioritize this cultivation will gain a significant competitive edge, while those that neglect it risk being left behind.

Shifting Focus from Skills to Capabilities

Historically, organizations have emphasized technical and functional skills, which are straightforward to teach and replicate. This approach thrived in a stable and predictable environment where success depended on executing standardized processes efficiently. But as markets evolve and interconnectedness grows, adaptability and innovation are becoming more valuable than rigid efficiency.

Entrepreneurship and the ability to drive value in a dynamic environment rely more on human capabilities like curiosity than on technical skills. These qualities empower workers to navigate change and imagine new possibilities.

At the same time, emerging technologies are becoming increasingly adept at replicating technical tasks. However, the distinct advantage of humans lies in capabilities that technology cannot replicate—such as empathy, curiosity, and the ability to tell compelling stories. While AI can create art or music, it lacks the drive to explore, the capacity for empathy, and the imagination that fuels groundbreaking invention.

The Era of Disruption and Opportunity

We live in a time of profound disruption and remarkable possibility. As traditional boundaries blur and technologies like artificial intelligence (AI) advance rapidly, it’s natural to feel a mix of anxiety and wonder. Both leaders and workers recognize the risks and opportunities inherent in these changes. With these advancements comes an extraordinary potential to enhance human performance—benefiting organizations, individuals, and society alike. However, seizing these opportunities requires a focus on nurturing critical human capabilities, particularly empathy and curiosity. These traits not only help counter anxiety but also fuel imagination and innovation.

For organizations and individuals to fully embrace this new landscape, they must scale and operationalize the development of these human attributes. Organizations that prioritize this cultivation will gain a significant competitive edge, while those that neglect it risk being left behind.

Shifting Focus from Skills to Capabilities

Historically, organizations have emphasized technical and functional skills, which are straightforward to teach and replicate. This approach thrived in a stable and predictable environment where success depended on executing standardized processes efficiently. But as markets evolve and interconnectedness grows, adaptability and innovation are becoming more valuable than rigid efficiency.

Entrepreneurship and the ability to drive value in a dynamic environment rely more on human capabilities like curiosity than on technical skills. These qualities empower workers to navigate change and imagine new possibilities.

At the same time, emerging technologies are becoming increasingly adept at replicating technical tasks. However, the distinct advantage of humans lies in capabilities that technology cannot replicate—such as empathy, curiosity, and the ability to tell compelling stories. While AI can create art or music, it lacks the drive to explore, the capacity for empathy, and the imagination that fuels groundbreaking invention.

Empowering Workers Through Curiosity and Empathy

To unlock human potential, organizations must foster environments that encourage curiosity and empathy. This involves intentional development strategies, cultural shifts, and granting workers autonomy to reimagine their roles. Workers, in turn, must actively practice and apply these capabilities to adapt to the growing presence of AI and other disruptive technologies in the workplace.

Providing tools and safe spaces for exploration, experimentation, and vision-building can help cultivate these qualities. Leaders who encourage open questioning and collaboration can guide organizations toward sustainable growth, innovation, and co-creation.

Generative AI: A Spotlight on Imagination Deficits

Generative AI has brought remarkable transformations to the workplace in just a few short years. Ideas that once seemed futuristic—AI summarizing meetings, automating project finances, or managing calendars—are now realities. For example, ChatGPT, one of the most prominent generative AI tools, reached one million users within five days of its launch in 2022. The speed of adoption and innovation in AI has made it a powerful force for change across nearly every industry.

Research suggests that these advancements could have an economic impact comparable to the invention of the electric motor or the personal computer. However, many organizations are struggling to keep pace with this transformation.

Bridging the Gap Between Human and Technological Capabilities

Despite AI’s potential, the gap between human capabilities and technological innovation is widening. According to Deloitte’s 2024 Global Human Capital Trends report, 73% of respondents recognize the importance of aligning human and technological progress, yet only 9% feel they are making meaningful strides.

This “imagination deficit” highlights the need for organizations and workers to rethink the role of technology and human creativity. By leveraging the unique strengths of humans and AI together, organizations can redefine work, spark innovation, and build a more sustainable future.

Through intentional efforts to cultivate curiosity, empathy, and imagination, organizations can ensure that they stay ahead in this era of disruption and capitalize on the extraordinary opportunities it presents.

Generative AI: Leading the Era of Disruption and Opportunity

Generative AI is rapidly transforming the workplace, creating both challenges and opportunities for organizations and workers. While previous technological disruptions raised concerns about skills development, employability, and uncertainty, generative AI has intensified the urgency of addressing these issues.

Today, 28% of workers report occasionally using generative AI for their jobs, with 8% saying it is either expected or encouraged. Looking ahead, four out of five U.S. workers could see at least 10% of their tasks automated by generative AI, and one in five could experience automation for up to 50% of their work. Globally, generative AI is projected to handle up to 25% of tasks currently performed by humans, signaling a massive shift in how work is done.

Generative AI in Action: Transforming Jobs and Industries

Generative AI is already making a significant impact in fields like software development, where its coding capabilities demonstrate how it could transform high-demand STEM roles. For instance, financial services company Westpac reported a 46% productivity boost in coders using generative AI tools, without compromising quality. Both junior and senior engineers benefited, as AI handled routine tasks, freeing time for more complex and meaningful work.

The effects of generative AI extend beyond coding. Knowledge work fields such as writing, translating, and data analysis are seeing increased automation, while industries like agriculture and retail are also embracing AI. In agriculture, AI-powered tools are being used to eliminate weeds, monitor plant health, and detect rocks in fields. In retail, AI supports real-time inventory management and delivers highly personalized customer experiences.

Balancing Concerns with Opportunities

Despite concerns about job displacement and the need for new skills to adapt to AI-driven changes, workers are also optimistic. A survey found that 70% of workers are willing to delegate tasks to AI to free up time for creativity and other pursuits. This reflects a growing recognition of the potential for AI to enhance, rather than replace, human work.

As work becomes more AI-enabled, human imagination, curiosity, and creativity are becoming increasingly critical. Generative AI is unique in its adaptability across tasks and domains, capable of drawing insights from vast data sets and enabling workers in ways yet to be fully imagined. However, its effectiveness depends on its accuracy and fairness. Errors and biases, stemming from the data it is trained on or its design, will require human intervention, fueled by curiosity and empathy, to address.

Generative AI as a Creative Partner

Generative AI has the potential to act as a creative collaborator, assisting workers with tasks like production design, software development, customer interactions, and marketing. Organizations are already exploring innovative uses of generative AI. For example, a collaboration between Zapata Computing, BMW, and MIT’s Center for Quantum Engineering is leveraging AI inspired by quantum technologies to enhance the efficiency of automotive production lines.

The success of such collaborations will depend on developing essential human capabilities like resilience, divergent thinking, emotional intelligence, and creative problem-solving.

The Growing Importance of Human Capabilities

Global recognition of the value of human capabilities is increasing. According to the World Economic Forum, top skills for workers in 2023 include curiosity, creative thinking, empathy, and resilience. Notably, “technological literacy” is the only technology-related skill in the top ten. Yet, less than 10% of workers are estimated to possess these crucial human capabilities, highlighting a significant gap.

As organizations and workers embrace generative AI, prioritizing the development of these human traits will be essential to navigating this era of transformation. By combining the strengths of technology with uniquely human qualities, the future of work can be redefined—one that is not only more efficient but also more imaginative and impactful.

The Future of Work: A Collaborative Journey

The successful integration of generative AI into the workplace will depend on how well organizations and workers embrace their roles as collaborators with technology. By fostering curiosity, adaptability, and creativity, workers can harness AI as a tool for innovation and growth. Meanwhile, organizations that invest in developing these human capabilities will position themselves to thrive in an increasingly AI-driven world.

As generative AI continues to redefine what is possible, the future of work will be shaped not only by technology but by the imagination, empathy, and ingenuity of the people who wield it.

Developing Human Capabilities for a Changing World of Work

The process of nurturing human capabilities varies across cultures, industries, and geographies. For example, in Japan, curiosity is sometimes seen as a hindrance to flawless execution based on proven methods. Innovation often arises from addressing acknowledged problems rather than exploring new ideas. Recognizing this, Shionogi & Co., a Japanese pharmaceutical company, introduced an optional four-day workweek. Workers could use the fifth day to pursue experiences beyond their immediate job roles, fostering digital upskilling and creativity that could later benefit the organization.

The Value of Scaling Human Capabilities

Organizations that solely rely on traditional strategies like cost-cutting or product innovation may find their advantages short-lived as technological advancements continue to accelerate. A new model is needed—one that combines human creativity with technological capability to generate fresh knowledge, solve previously unrecognized problems, and uncover new value opportunities.

This approach is gaining traction among executives; in a recent survey, 71% said their plans for generative AI included enhancing their workforce’s human capabilities.

Consider IKEA, the global furniture retailer, which is transforming its call centers. IKEA introduced an AI bot, Billie, to handle routine customer inquiries. At the same time, they invested in upskilling 8,500 call center employees, focusing on design skills and human capabilities. This shift enabled workers to transition from procedural tasks to roles emphasizing creativity and personal connection.

Scaling human capabilities benefits both organizations and employees. For workers, it enhances resilience, well-being, and mental health—key elements of human sustainability. For organizations, it builds resilience and differentiation, allowing them to adapt to change and thrive in a dynamic environment.

Preparing for an Uncertain Future

Traditional reskilling efforts are no longer sufficient in a rapidly changing workplace. Workers need tools and strategies to adapt to multiple potential futures. By focusing on human capabilities like adaptability, empathy, and imagination, organizations can improve employee well-being and foster the ability to navigate unexpected challenges. This adaptability strengthens organizational resilience and positions companies for long-term success.

Harnessing Imagination for Positive Change

Organizations should adopt a long-term perspective, prioritizing adaptability, resilience, and imagination over short-term fixes. Redefining success to reflect a collaborative approach between humans and technology can create lasting value.

To foster imagination and human capabilities, organizations can take the following steps:

1. Operationalize Human Capabilities as a Workforce Strategy

Organizations must assess their workforce’s human capabilities, particularly empathy and curiosity. Unlike technical skills, these are harder to measure, but methods such as peer feedback, psychometric assessments, simulations, and AI tools can provide insights. Once capability gaps are identified, organizations can address them through targeted hiring and development initiatives.

For example, IDEO, a design and consulting firm, prioritizes hiring “T-shaped” employees—those with deep expertise in a particular area (the vertical stroke of the T) and collaborative, human capabilities like creativity (the horizontal stroke of the T). These employees are more likely to engage in cross-disciplinary collaboration and ask insightful questions that drive innovation.

2. Encourage Imagination to Support Human Sustainability

Workers thrive when their creativity aligns with meaningful outcomes. Leaders can foster this by providing safe spaces for experimentation and encouraging employees to pursue passion projects outside their defined roles. This not only hones their human capabilities but also creates additional value for the organization.

3. Highlight the Importance of Human Capabilities

Leaders and managers must model curiosity and empathy, consistently asking questions and listening to their teams. By shifting the focus from “What needs to get done?” to “What possibilities can we unlock?” leaders can inspire workers to think creatively and contribute to transformative ideas. Managers can further support this by empowering workers to rethink their roles and explore new ways of achieving success.

For some leaders, adopting a model that fosters worker autonomy and values feedback may be challenging. Managers and executives are often tasked with meeting specific objectives or solving immediate problems, and as a result, they may struggle to see the benefits of encouraging employees to think creatively or explore new ideas. A survey of 520 chief learning officers and chief talent development officers revealed that many of them are reluctant to encourage curiosity, believing that allowing employees to explore their own interests would make the organization harder to manage.

In order to nurture creativity, senior leaders must establish governance frameworks that prioritize creativity as a critical factor in decision-making. These frameworks should guide investment decisions and encourage an environment where curiosity is seen as a strength rather than a distraction.

Organizations may also need to confront biases against curiosity and creativity, as well as the blind spots that prevent them from recognizing these qualities’ growing importance for workers. For instance, while executives acknowledge the importance of human capabilities for themselves (with 8 out of 10 executives agreeing), they view them as only moderately important for their employees (with 6 out of 10 executives acknowledging this). This gap highlights the need for organizations to shift their mindset, recognizing that fostering creativity and curiosity in their workforce can be just as essential for long-term success.

One reason for the disconnect between executives’ views on creativity and its importance for employees may stem from the historical perceptions of creativity within organizations. Creativity has often been seen as something that competes with efficiency, despite its long-term potential to drive substantial value. Research shows that many people outwardly celebrate creativity but subconsciously view it as a disruptive force that introduces uncertainty. Similarly, curiosity has been both celebrated and viewed as potentially disruptive, contributing to a mixed perception. A recent survey across 16 industries revealed that 65% of workers believe curiosity is critical for exploring new ideas and solving problems at work, yet 60% struggle to pursue their curiosity due to daily routines and rigid organizational structures.

When leaders at all levels not only emphasize the importance of qualities like curiosity and imagination but also model them through their actions, it can foster a culture of trust. This, in turn, helps workers become more comfortable with uncertainty and more willing to embrace an imaginative transformation of their roles. Investing in workers’ reinvention not only strengthens resilience within the current workforce but also enhances the organization’s attractiveness to new talent, aiding in both attraction and retention.

Interestingly, while workers rate collaboration with AI as highly important, executives rank it much lower, suggesting that leaders may be underestimating the impact of AI on their roles.

Organizations should go beyond merely encouraging innovation—they should create opportunities and spaces where workers can explore, experiment, disrupt, and collaborate. Digital “playgrounds” that combine human collaboration with the latest technological tools can help employees tap into their curiosity and reduce the fear of taking risks.

Another way to foster creativity is by creating moments for imagination, both ad hoc and integrated into daily work routines. Hackathons, for example, are a great model for such experimental moments. In these events, creative autonomy is prioritized over structured management of the innovation process. Instead of overseeing each step, managers provide tools and pose questions that inspire participants to think creatively and explore new possibilities.

Looking towards a future enriched by imagination:

The ongoing disruption from technological advancements and a more interconnected world is reshaping how organizations and workers approach analysis, collaboration, and creation. Emerging, yet-to-be-conceived technologies will continue to drive this transformation in the years ahead. However, while some aspects of creativity can be automated, the drive to seek answers to new questions and explore uncharted territories remains inherently human. These abilities—curiosity, creativity, and critical thinking—cannot be automated.

It is crucial for organizations to prioritize human capabilities in an increasingly technology-dependent world. This involves hiring individuals who possess qualities like curiosity and creativity, developing these traits throughout the workforce, creating safe environments for experimentation, and rewarding workers who use their autonomy to reimagine possibilities for themselves, the organization, and its stakeholders.

This process of reimagination is no longer solely the responsibility of leaders. It has become a collective effort that includes everyone within the organization and beyond, with new technologies working alongside teams to produce transformative results. When imagination becomes an expectation across all levels, workers can envision new opportunities, and organizations can continuously reinvent themselves, fostering a culture of innovation that supports long-term success.

Research Methodology

Deloitte’s 2024 Global Human Capital Trends survey gathered insights from 14,000 business and human resources leaders across diverse industries and sectors in 95 countries. In addition to the extensive global survey, which serves as the core data for the Global Human Capital Trends report, Deloitte enhanced its research this year with specific surveys targeting both workers and executives. These surveys were designed to capture the workforce perspective and identify any gaps between leader perceptions and the realities faced by workers.

The executive survey, conducted in collaboration with Oxford Economics, included 1,000 global executives and board leaders. Its purpose was to explore their views on emerging human capital issues. To supplement the survey data, over a dozen interviews with executives from leading organizations provided valuable insights. These combined findings shaped the trends highlighted in the report.

Leave a Reply

Your email address will not be published. Required fields are marked *