The Human Edge: Why People Skills Matter More in the Age of AI

As AI capabilities rapidly evolve, actuaries and other technical experts are actively embracing these technologies to elevate their work.

Rather than diminishing expertise, this digital shift elevates the value of uniquely human capabilities. Increasingly, the ability to lead teams, communicate effectively and think strategically serves as a powerful complement to analytical mastery in an AI-enhanced workplace.

Julia Lessing, Head of Lifelong Learning at the Institute, has spent decades working with actuaries making this transition. Drawing on her experience as a consultant, coach, and educator, she’s identified common challenges and developed a structured approach to building management capabilities.

Amplifying technical excellence through leadership

“As actuaries, we spend years learning the technical side of our profession, but as our careers progress, we need a whole new set of skills,” explains Julia. “Like most STEM-based education, managing people isn’t a part of core actuarial training.”

However, the analytical rigour, systematic thinking and attention to detail that make actuaries excellent technical professionals provide a strong foundation for leadership. Rather than viewing management skills as an entirely separate domain, Julia sees them as professional amplifiers that allow actuaries to extend their influence beyond individual contribution. With concerted effort these “soft” skills can become a real strength.

“The same analytical mindset that helps you solve complex technical problems can be applied to understanding team dynamics and communication patterns,” Julia notes.

“Your ability to identify patterns in data translates remarkably well to recognising patterns in human behaviour and team performance.”

The power of non-technical skills

Based on extensive consultation with actuaries across career stages, Julia has developed “The House of Great Actuarial Managers” framework, identifying key foundations and core skills needed for effective leadership.

The framework addresses what she sees as the most critical management skills for actuaries:

• Managing high-quality actuarial work: Building processes to review technical work without completing it personally and developing strategies for when mistakes occur.
• Understanding communication styles: Recognising and adapting to different working styles within teams to improve collaboration and outcomes.
• Supporting wellbeing: Identifying practices that sustain personal wellbeing while monitoring and supporting team members’ wellbeing.
• Managing Time Effectively: Tracking and triaging tasks and developing delegation skills.
• Strategic thinking: Finding time for big-picture thinking and connecting team activities to organisational objectives.
• Developing team members: Identifying learning needs and using coaching skills to support professional growth.
• Project management: Planning, implementing, and monitoring projects systematically.
• Working with people outside your team: Building key relationships and confidently engaging in difficult conversations.
• Professional and personal development: Creating balanced development plans that include technical skills and personal interests.

Why good management matters

The consequences of struggling with this leadership transition extend beyond personal stress – Julia’s research indicates substantial organisational costs when technical managers lack essential people skills.

“Poorly delegated technical work that leads to three weeks of wasted time can cost organisations approximately $10,000 in salary for a newly qualified actuary,” Julia says.

“When managers contribute to reduced productivity or team disengagement, this can cost between $10,000 and $60,000 annually per team member.”

These figures don’t account for additional costs from higher turnover, which is particularly expensive in specialised fields like actuarial science where qualified professionals are in high demand.

On the flip side, technical experts who develop strong management skills can amplify organisational success, as Michael Storozhev asserts.

“When done right, delegation allows you to scale yourself. Rather than being too focused on the first round of analysis, you get the opportunity to step back, review it, and understand how it also connects to other parts of what the team is doing. This broader perspective often leads to better solutions for the business as a whole.”

Beyond the corporate ladder

Julia challenges the traditional view of actuarial careers as linear progressions toward Chief Actuary or Partnership roles. Instead, she encourages actuaries to view their careers as more like a “climbing frame” or network that includes actuarial roles, non-actuarial positions and volunteer opportunities. Julia speaks from experience – her own journey has been more of a “blob” than predetermined route.

“I began my career as an actuarial student, but I was also a parent who trained as a breastfeeding counsellor while my children were small. My experience as a community counsellor helped me secure my first actuarial role and succeed as a consultant. My path even includes being a Tupperware demonstrator while on maternity leave, which taught me valuable sales skills, and working as an academic, which helped me understand the current education curriculum.”

This broader perspective allows actuaries to develop diverse skills that enhance their effectiveness as technical leaders.

Leading in the AI Era

As automation and AI increasingly handle routine analytical tasks, the human aspects of leadership become even more valuable. Technical professionals who can effectively manage teams, communicate across disciplines, and think strategically are well-positioned for the current moment.

Elayne Grace, CEO of the Actuaries Institute, notes:

“As AI technology advances, soft skills become even more crucial. STEM professionals who develop these skills are uniquely positioned to bridge the gap between AI advancement and organisational success.”

The principles of good management apply not just to people but also to technology. Chris Dolman, a senior Data Science and AI Actuary, offers an insightful comparison:

“Think of AI assistant tools like you would a really well-read but distracted new intern – eager to please and help you, very confident and polished on the surface, but prone to mistakes. Always make sure you thoroughly check your intern’s work, even if it looks great at first glance.”

This perspective highlights an important truth: whether managing people or technology, clear communication, appropriate supervision, and quality assurance remain essential leadership skills in the AI era.

Investing in leadership development

Organisations increasingly recognise the value of investing in leadership development for technical professionals. To support the growth of actuaries, the Institute offers events, resources and mentoring to aid members in their transition.

Interested in exploring these concepts further? Julia’s framework is detailed in her recently published book, Aspiring Actuarial Leaders: The Modern Manager’s Toolkit.

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