Why human judgement is essential in the age of AI

Artificial intelligence is everywhere – from algorithms shaping market trends to cameras monitoring shop floors. It’s easy to assume machines are replacing roles once carried out by people. But according to Sir Andrew Likierman, Professor of Management Practice and former Dean of London Business School, that perception misses a crucial point: the more powerful AI becomes, the more we need human judgement.

Judgement, as Likierman defines it, is the ability to combine relevant knowledge and experience with personal qualities to form an opinion or make a decision. It’s not just decision-making; it’s a nuanced process that draws on context, trust, and human insight. And in leadership, it’s indispensable. “All you have to do is think about a leader without judgement to know you’re in trouble,” he notes.

The complexities of judgement

AI can process vast amounts of data and even simulate empathy, but it lacks consciousness, ethics, and the ability to interpret meaning. “It’s clever in the way it makes you think it has judgement,” Likierman says, pointing to conversational AI that flatters users with phrases like “That’s a great question.” But this is an illusion – programmed responses designed to make us feel good.

That distinction matters because decisions are rarely uniform. Machines excel at repetitive tasks and pattern recognition, but leadership and professional life are about complexity and ambiguity. Awareness of context – understanding whether a situation mirrors past experience or demands a fresh approach – remains a uniquely human strength. So does assessing trust: who and what to rely on when stakes are high.

Likierman outlines six elements of good judgement in his book Judgement at Work: relevant knowledge, contextual awareness, trust, feelings and beliefs, choice, and delivery. AI may outperform humans in some areas, such as accessing knowledge, but struggles with others. For example, it cannot gauge interpersonal dynamics or anticipate the emotional undercurrents shaping decisions.

The future of smarter leadership

This doesn’t mean humans versus machines. The real power lies in collaboration. In medicine, AI can scan thousands of radiology images with remarkable accuracy, reducing diagnostic errors. But empathy – understanding a patient’s fears, pain, and personal circumstances – is something only a doctor can provide. Leaders in every sector can learn from this: use AI for efficiency and insight but never outsource the human touch.

Still, risks remain. Garbage in, garbage out or GIGO is a persistent problem. Poor-quality data or biased programming can skew outputs, and users often have no visibility into how robust the underlying data is. Privacy is another concern. Organisations are already warning employees not to feed confidential information into public AI tools. These issues won’t vanish overnight, even as technology improves.

What should leaders do to address these risks? First, recognise that judgement is a process – not a mystical quality that humans inherently possess. It is developed and refined over time through our experiences and continued learning. Likierman urges leaders to stay informed about AI, embrace its potential, and consciously sharpen their own judgement. That means questioning assumptions, understanding biases, and improving how we assess trust and context.

AI will get better, and fast. But it will never be human. And that’s good news. In an age of algorithms, the ability to exercise sound judgement is not just a leadership skill – it’s a survival skill.

If you’re interested in developing these skills further, Sir Andrew expands on this framework in his LBS Online masterclass, Mastering Decision-Making Through Better Judgement , which explores how leaders can apply structured judgement in real-world settings.