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Insights · August 26, 2026

The risk isn't a manager who hesitates. It's the personnel file he pastes into a chatbot to get past it.

Somewhere in your building this week, a manager sat down before a difficult conversation — a performance conversation, a termination, a conversation about someone's attitude in a meeting — and didn't know exactly what to say. You didn't see this happen. You assumed it went fine, because it usually does, because that manager has handled hard conversations before, because you hired them partly for that. What you didn't see is where they went to prepare.

A new survey from The Predictive Index, a company that sells behavioral assessment and hiring software, put a number on that gap. PI surveyed two separate groups in July 2026 — 399 managers and 208 CEOs and business leaders — across industries, job levels, and generations. It's a self-reported survey, not a controlled experiment, and the company has an obvious interest in the answer: it sells the kind of manager-development tools this survey argues companies need more of. Read the numbers with that in mind. They're still worth reading.

The finding: 74 percent of CEOs and business leaders say their managers are “very confident” handling tough people conversations on their own. Only 20 percent of managers say they actually prefer to prepare alone, without a framework, a script, or input from someone else. Forty-two percent say they know what they want to say but not how to say it. And when PI asked where managers go to close that gap, 72 percent said public AI tools — the free, consumer-facing kind — are useful for preparing. Forty-four percent admitted they'd typed an employee's name and performance details into one.

Managers are more aware of where they need support than their leaders are, and addressing those needs starts with understanding what's driving them.Anthony Belluccia, I/O psychologist, The Predictive Index

Only 45 percent of the organizations in the survey have a written policy governing how managers use AI for this kind of thing. Most don't.

Here is why this lands differently for the person at the top than for anyone else in the building. A director at a large company who overestimates a manager's readiness costs the company an awkward meeting and maybe a grievance that HR absorbs. You don't have an HR department standing between the mistake and the consequence — you likely have the mistake and then you, directly, dealing with the fallout: the wrongful-termination claim, the employee who quotes back language that sounds suspiciously like a chatbot wrote it, the confidential compensation detail that's now sitting in a public AI company's training data because nobody told your manager not to put it there. The gap PI is describing between how confident you think your managers are and how prepared they actually feel isn't an HR statistic when you're the one signing the severance check.

The part the research doesn't say, but that I'll say plainly: the 74 percent of leaders who called their managers “very confident” almost certainly weren't lying or careless. They were answering based on how the manager behaves in front of them — steady, decisive, not asking for help. That's exactly the behavior a manager learns to perform for the person who signs their review. Confidence in front of the boss and readiness for the actual conversation are two different things, and the survey's own numbers show managers know the difference even when their leaders don't. If you've concluded a manager is “good with people” mainly because they don't come to you with questions, that absence of questions is the finding, not evidence against it.

One thing to do this week: ask each manager who has a hard conversation on their plate — a PIP, a termination, a conflict between two people who don't get along — how they're preparing for it, specifically. Not whether they feel ready. What they're actually going to say, in what order, and where they got the framing. If the honest answer involves a chatbot and an employee's name, you now have a policy gap to close before it becomes a legal one, and it costs you nothing to close it: tell managers what information never leaves the building, in writing, this week.

The deeper issue is one layer up from any single conversation. It's whether you actually know how the people running your teams handle pressure, criticism, and conflict — or whether you've been reading their calm the way PI's CEOs did. The Leadership Profile starts with the part of that gap that sits with you: how you are actually wired to handle pressure, instead of how you assume you do.

Reading

2026 AI and People Leadership Survey, by The Predictive Index (The Predictive Index (PR Newswire release)).

Where to start

See your own wiring, not the general idea of it

The Leadership Profile reads how your pattern shows up specifically, under your own pressure, in your own company.