AI in the Workplace: 5 Leadership Practices for Middle Managers

By: Beth Schaefer, IPD Director
Middle managers sit in a uniquely challenging position; you are responsible for carrying out organizational strategy while also navigating the day-to-day realities of your team. Using AI at work is no different. Your organization may or may not have formal AI policies, and your team may or may not be following them. And because AI is embedded in nearly every tool – even a simple internet search – it’s increasingly difficult to monitor how it’s being used.
In our continuous improvement courses, IPD teaches that doing nothing is a choice, but not a neutral one. As a manager, if you ignore AI, you are likely enabling your team to use AI badly.
These 5 Leadership Practices offer a starting point for leaders who want to guide responsible, productive AI use on their teams – whether it’s top-down from the organization or grassroots from your team members. Each of these practices could be its own article, but together they provide a practical starting framework for navigating AI’s growing role in everyday work.
1. Create a lightweight AI infrastructure your team can use
You do not need a formal enterprise AI implementation to set expectations for your team. Start small to promote acceptable and responsible use:
- Quality Prompts – Teach your team to ask clear, goal-driven questions so that AI returns useful information. This free certificate includes prompting courses.
- Model Acceptable Use – Share when and how you use AI to model acceptable behavior and norms.
- Peer Pairing – Pair someone skilled and comfortable with AI to guide someone less enthusiastic or insecure.
These small steps build confidence and reduce misuse long before formal policies from your organization are implemented and communicated.
2. Actively manage Shadow AI and Communicate Guardrails
67% of employees engage in Shadow AI use – using unapproved AI tools and chatbots at work without IT or security approval. This widespread practice puts an organization’s security in jeopardy.
If your organization has policies and structure for AI, communicate them clearly and consistently. If it doesn’t, establish common-sense guardrails:
- Authorization – Be clear on which tools are acceptable and which ones are not
- Boundaries – Establish what data can and cannot be entered
- Compliance – Verify why and when human review and monitoring is required
Clear expectations reduce accidental security exposure and build trust with AI tools.
3. Build a Safe-to-Fail, Risk-Tolerant Culture
Innovation requires a safe culture, and AI experimentation is no exception. View this past webinar or view this PDF for Innovation strategies.
- Share – Talk about mistakes you’ve made, what you learned, and how you apply those lessons to future work.
- Ask for Help – Name colleagues you used for troubleshooting and give credit to them for that assistance.
- Make Mistakes OK – Normalize ‘trial and error’ to reduce the fear of mistakes. Employees who fear the repercussions of their mistakes may try to cover them up which can only exacerbate the situation rather than repair it.
- Celebrate Learning – Provide professional development time to emphasize that we all need to keep learning in the workplace.
A team that feels safe experimenting will adopt AI more thoughtfully and creatively.
4. Limit Time Spent in AI to Prevent Burnout
AI load can lead to burnout in 2 different ways.
- Hyper-loop multitasking – monitoring multiple AI inquiry loops at the same time. This constant rotation prevents your team from doing deep thinking. (Those of you who are regular readers already know that I believe that multitasking is a myth even without AI).
- Endless Open Loops – AI tends to keep making additional suggestions for improvement that never allow for a task to be done. Most humans like closed loops (that’s why we finish watching a mediocre Netflix series) and will keep revising long past the point of worthwhile returns.
Help your team set boundaries to prevent AI Burnout:
- Goals – Use SMART goals to define AI use, objectives, and outcomes for your team so that AI contributes to production rather than creating the illusion of being busy.
- Use Higher Level Thinking Skills – Teach your team to stop continuous prompting and switch to synthesis – thinking, reflecting, and evaluating the AI response already received.
- Pause-Plan cycles for your team that provide natural pauses in the workflow before prompting AI again.
- Monitor – Pay attention to monitor if AI is helping production or just creating noise and additional stress.
Burnout isn’t created by the use of AI – it’s generated by the unmanaged use of AI and unclear AI expectations.
5. Protect Human Judgment
Your most important leadership responsibility in the AI era is protecting human judgment. Judgment starts with the prompt and is used through the analysis of the AI response.
- Goal Definition – Encourage your team to understand their goal and outcomes, and include that information, along with their audience, in their AI prompt.
- Evaluation – Emphasize that you expect your team to evaluate AI-assisted work and not automatically accept what AI provides.
- Use Checklists – Provide your team with a review checklist:
- Is this information accurate?
- Is this information biased? Did your prompt introduce bias?
- What criteria am I using to choose from the AI-provided options?
- How should I package the information to communicate it to others to assist with decision-making or assessing risk?
AI should assist humans, not replace them. Teams that demonstrate discretion preserve their value and strengthen organizational trust.
AI Technology does not reduce the need for leadership – it increases it. As a middle manager, you set the tone for how your team uses AI, learns, and navigates organizational expectations. Clear communication, thoughtful boundaries, and a culture of learning will help your team thrive in an AI-enabled workplace.
If you want tools to support this work, IPD offers several resources, including:
- A free Change Chart webinar – a framework for helping teams navigate transitions, including AI adoption
- Free Capability Maturity Model – a tool to evaluate your organization’s AI maturity and identify gaps between enterprise strategy and department practice.
- Leadership professional development noncredit courses.
Article Resources:
Shin, J., & Sucher, S. J. (2026). AI Adoption Is Overloading Your Middle Managers. Harvard Business Review / Harvard Business School. [hbs.edu]
Field, E., Hancock, B., Imose, R., & Yee, L. (2023). Middle Managers Hold the Key to Unlock Generative AI. McKinsey & Company. [mckinsey.com]
Rodriguez Constable, C. (2026). What Middle Managers Need Most in the AI Era. Forbes. [forbes.com]
Options From the IPD
- All
- Expert Insights - archives
- Leadership and
- leadership and strategy EI
- Other EI
- past webinar
- Public Sector EI
- webinar





















