Microsoft CEO Satya Nadella says humans can't rely on brains alone to succeed at workplace, they need…

Microsoft CEO Satya Nadella emphasized that emotional intelligence is becoming increasingly vital in the workplace as artificial intelligence takes over more technical responsibilities, calling empathy a crucial business skill rather than just a soft skill.

During a recent conversation with Axel Springer CEO Mathias Döpfner on the "MD Meets" podcast that aired November 29, Nadella stated that leaders cannot succeed with intelligence quotient alone. "IQ has a place, but it's not the only thing that's needed in the world," he said in the interview. "I've always felt, at least leaders, if you just have IQ without EQ, it's just a waste of IQ."

Social intelligence gains prominence in AI era

Nadella added that social intelligence is also becoming key as AI handles more technical tasks. The Microsoft chief executive has consistently maintained that empathy represents an important business capability, not merely a peripheral soft skill.

When Döpfner questioned whether the growing importance of empathy influenced Microsoft's decision to implement return-to-office mandates starting early next year, Nadella responded that recognizing the role of human collaboration is even more crucial in the age of AI, describing the workplace as "the best collaboration tool." However, he clarified he doesn't want to be overly rigid about office return policies.

CEO reshapes Microsoft’s culture with 'growth mindset' approach

Nadella has recently restructured Microsoft's leadership team partly to enhance competitiveness in the AI race, with the company pursuing artificial general intelligence through its new superintelligence team.

The emphasis on soft skills comes as many workplaces are starting to value problem-solving, emotional intelligence, and creativity as they delegate more technical responsibilities to AI, according to executives and workplace transformation experts.

Nadella's leadership philosophy centers on what he calls a "growth mindset," transforming Microsoft's culture from "know-it-alls" to "learn-it-alls" during his decade-long tenure as CEO. This approach has helped Microsoft achieve significant growth, with its stock climbing almost 20% this year and its market capitalization reaching $3.7 trillion, making it the world's second most valuable company after Nvidia.