Stephen M. R. Covey has built a career based on trust and leadership. His name—as well as his late father’s, Stephen Covey—is often associated with leadership theory, training and advice.

Stephen M.R. Covey is the former CEO of Covey Leadership Center, where he headed up the strategy that propelled his father’s influential book The 7 Habits of Highly Effective People to become a bestseller. He then held top leadership positions when the center became FranklinCovey following its 1997 merger with Franklin Quest, and cofounded leadership consulting practice CoveyLink, which is now part of FranklinCovey and doing business as the Global Speed of Trust Practice.

In addition to helping leaders learn how to cultivate trust, Covey has also written two bestselling books on the topic: The Speed of Trust in 2006 and Trust & Inspire in 2022.

Trust between leaders and employees is always important to business, but the rise of generative AI is making it a much more complicated dynamic today. I talked to Covey about how to build (or rebuild) and maintain trust between management and employees in the new gen AI world. Today’s edition of Forbes CEO spotlights our conversation and what business leaders need to know.

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WHERE IS THE TRUST?

Even before ChatGPT shook the world in late 2022, trust in both institutions and other people was waning, Covey said. Many people don’t trust businesses, government, institutions, media, science and experts—and Covey said such distrust can be contagious.

Stephen M.R. Covey

FranklinCovey

“In a low-trust world, it’s very important for leaders to counteract that and be intentional about building trust in their team, their company and their culture. …Because if you don’t, the default position will tend to drift towards distrust,” he said.

AI can make that drift worse. Covey described the wildly diverging attitudes toward AI. Some are excited, seeing it as a massive technological breakthrough that can help them achieve more than ever before.

But others view the technology with fear and trepidation. The fear stems through two viewpoints. Some may be worried about society in general, and are concerned that the rise of AI is the first step toward machines taking over all essential institutions. For others, the fear is much closer to home: They’re afraid that AI will replace their jobs.

REGAINING EMPLOYEE TRUST

Covey said there is some truth to both viewpoints on AI. Yes, it will revolutionize the way work is done and how society is run. And yes, it will replace some of the jobs in today’s market. It’s important to acknowledge and listen to employees’ fears about AI replacing them, while also recognizing that it is a possibility, he said. But it’s crucial to talk openly about your reasoning for bringing AI into the workplace.

Covey said you shouldn’t start by talking about the potential for job elimination—that would amp up employees’ fears, as well as decimate their trust in you and the organization. He advocates for a blended approach. Talk about both the good and the bad when it comes to AI: Discuss how it will unleash potential and talent in your organization, but acknowledge that it might eventually lead to some jobs being eliminated. However, be sure to reiterate that AI is likely to create new jobs and opportunities for growth within the organization.

But a leader who wants to build trust needs to do more than just tell employees that AI will empower them. You need to include employees in the entire discussion about bringing AI into the company, Covey said. Do it with them, not to them.

“The more we involve them in that, and …we come up with a solution together, the more they can be part of that solution and embrace it, the more trust we’ll have,” he said.

UNDERSTANDING AND EMPATHY

Listening, showing empathy and working to understand how employees feel is a powerful way to build trust around AI implementation, Covey said. Employees need understanding from a leader in the same way that a body needs oxygen. Listening to what they have to say and showing some understanding of their opinions won’t necessarily fix any issues, but it shows that you value being on the same page. Covey said it’s also important to respect their opinions, even if they are contrary to your plans.

It’s also vital to explain why you’re moving forward with AI, Covey said. An explanation provides context, meaning, and an opening to wider understanding from employees. Talking directly about the reasoning behind AI implementation helps employees see that you’re being transparent—a vital element to building trust. And, he added, trust built on transparency will remain, even if the employees are still fearful about what AI will do for their jobs.

“The goal is we want to implement AI, hopefully in a way that brings people with us, involves them with us,” Covey said. “But also we want to make sure that when it’s all said and done, that there’s trust in our culture. It would be a mistake…if we implement AI …we even get efficiencies and cost savings, and we’ve lost our workforce and they don’t trust us. I don’t know if we’re in a better place. I think we’d be in a worse place.”

PROGNOSIS FOR TRUST

Generative AI is often touted as a way that companies can become more efficient by using technology to complete routine tasks, make complex predictions, do research, provide ideas and create content. But, Covey said, it might also be a more roundabout way to build trust. After all, bringing AI to a company is a complex task—one that involves careful management of people.

“This whole process of learning how to grapple with [AI] could be a catalyst to focus on the importance of build[ing] a high-trust team and culture,” he said. “…Just like distrust can be contagious, trust also can be contagious, and it can ripple out in a positive way. And if people are part of a high-trust team and culture, they then view the world through the lens of ‘you can build trust.’”

As more companies embrace AI, Covey said, some are doing extremely well with maintaining trust. Others are not. For some, AI is amplifying companies’ pre-existing strengths and weaknesses. Those that already had a low trust factor between employees and leadership are likely not doing well. But those that had a high trust factor are likely doing better in terms of adopting and utilizing the technology.

Companies can work toward building more trust. The ones that do it best are the ones that make it a priority, similar to increasing revenues or lowering costs. The steps to build trust while bringing AI to the enterprise are similar to those about improving trust in general: talk and listen. Be understanding and empathetic. Be transparent. Include employees in major decisions.

Companies that are doing well with AI so far likely have that trust, Covey said.

“It’s not because we’ve got this great AI management gave us,” he said. “It is not technology, it’s not strategy. Those are factors. The No. 1 reason employees trust management is because the management trusts the employees, and they feel it.”

COMINGS + GOINGS

Equipment manufacturer Alamo Group Inc. announced that Robert P. Hureau will be its next president and chief executive officer, effective September 2. Hureau previously worked as chief executive officer of American Trailer World, and he will succeed Jeffery A. Leonard, who is retiring.
Online learning platform Skillshare tapped Paul Slavin to be its next chief executive officer, effective August 19. Slavin was a former senior executive at ABC News, and he succeeds Matt Cooper.

Send us C-suite transition news at forbescsuite@forbes.com

STRATEGIES + ADVICE

In today’s world, it’s easy to get stressed out due to work-related cognitive dissonance: finding yourself acting against your corporate or personal values. Here’s how to recognize it and realign your work with your values.

When it’s time for a CEO to step down, there are many things to consider that most leaders don’t think about, such as what you will do once you’re out of that executive office, and how your legacy will continue.

QUIZ

The CEO of which company unexpectedly stepped down last week as it reported a third consecutive drop in quarterly sales?

A. Home Depot

B. Target

C. TJX

D. BJ’s Wholesale

See if you got the answer right here.