Leadership Developmentin 2025: Trends and Challenges CONTENTS 4Organizational Prioritiesand the AI Imperative 5Evolving in an Era of Digital Disruption6Building a Future-Ready Workforce As part of our mission to provide world-class global insights forthe most effective ways to develop leaders for the future, HarvardBusiness Impact presents its third annual Global LeadershipDevelopment Study. The study aims to uncover shifting business 12Employee Engagement andLeadership Effectiveness 13Flat Trends in Employee Engagement 16The Changing Focus forLeadership Development 17The Focus for LeadershipDevelopment in 202519Supporting People DuringTransformations 2025 SURVE Y HIGHL IGHTS 1,159 L&D/HR professionalsand functional leaders Nearly half from organizations withat least 20,000 employees 51% from organizations with annualrevenue of at least $10 billion More than 14 countriesand across industries The findings reveal keytrends shaping leadershipdevelopment in 2025, witha focus onevolving traininggoals,emerging learning In 2025, rapid advancements in technology, evolving workforce expectations, andincreasing pressure to drive productivity and innovation are requiring organizationsto rethink how they prepare leaders for the future. To better understand howleadership development strategies are evolving, Harvard Business Impact This study surveyed more than 1,100 learning and development (L&D)professionals, human resources leaders, and functional heads across 14 countriesand multiple industries. The respondents represent organizations of varying sizes, To complement the survey data, this report also draws on insights fromconversations with experts responsible for designing and executing leadershipdevelopment initiatives. The findings reveal key trends shaping leadership The data reveal a significant shift in leadership development priorities andhighlight how organizations are adapting leadership development programsto meet changing demands. This report offers insights on the attributes thatorganizations prioritize when selecting training programs, as well as the innovative Organizational Prioritiesand the AI Imperative Evolving in an Era ofDigital Disruption To sustain growth, most organizations have no choice but toembrace emerging technologies. The top business priorities In 2025, AI adoption leads digital transformation efforts, with55% of organizations prioritizing generative AI and machinelearning—up from 43% in 2024. Other key initiatives includeautomation, robotics, and cybersecurity. The focus reflectsleaders’ urgency to adopt advanced technologies, including AI, Just as the internet has drastically loweredthe cost of information transmission, AI ORGANIZATIONAL PRIORITIES AND THE AI IMPERATIVE Building a Future-Ready Workforce Along with tech-focused initiatives, human capital strategies areevolving to ensure employees are prepared to work alongsideAI. The dual focus on AI-first business practices and workforce AI-based talent management and internal mobility systemsare now the top workforce priority, with 53% of organizationsinvesting in these tools. Upskilling and reskilling efforts are also Together, these trends reflect a growing recognition that future-proofing the workforce requires investing in both people andtechnology. AI is both a driver for the need to intensify these effortsas well as part of the solution. Effective methods to leverage AI to A generation ago, the half-life of the valueof a skill was approximately 26 years. Now ORGANIZATIONAL PRIORITIES AND THE AI IMPERATIVE Empowering Leadership with AI AI is rapidly shifting from an area for experimentation to a coreelement of business operations. In 2025, nearly 8 in 10 respondentsreport progress in embedding AI into workflows, with nearly a third Additionally, departmental leaders are more likely than L&Dprofessionals to report extensive AI integration (37% vs.24%), suggesting functional areas are leading adoption. While Organizations expect AI to help predict change and improveefficiency, decision making, and scalability. Two of these areas—predicting change and decision making—are closely linked to Awareness of these opportunities does not appear to be universal.Interestingly, L&D leaders are more likely than functional leaders torecognize AI’s impact on strategic decision-making. As one head ofHR notes, many leaders still fail to fully leverage AI for strategy. [Leaders] say, ‘I want to see my team utilizing[AI],’ but they’re not there [themselves]. Theyunderstand the importance, but they are notusing it and they are not going to be role models. Most organizations now expect leaders to use AI in strategicdecision making (56%), yet many lack the training to do soeffectively. To address this, leadership development mustemphasize AI fluency alongside traditional skills like strategy, Leaders will also be responsible for upskilling teams and drivingAI initiatives, placing a significant burden on them to guid