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The rise of Artificial Intelligence (AI) in leadership roles has transformed the capabilities, practices, and ethical considerations essential for effective digital leadership. This research paper examines the multifaceted challenges of leading in AI-enabled environments, focusing on ethical dilemmas, human-AI collaboration, skill development, organizational dynamics, and strategic alignment. It addresses a critical gap by exploring how ethical, human-centered leadership must evolve to navigate the complex realities of AI integration within organizations. Using a thematic literature review, we synthesized insights from 116 peer-reviewed studies published between 2022 and 2025. The findings reveal that AI adoption presents a balancing act for leaders requiring them to manage the tension between technological innovation and human-centered practices. Key concerns include algorithmic bias, data privacy, trust in AI systems, and cultural transformation. This paper offers both theoretical and practical contributions, with implications for business leaders, policymakers, and academics. The insights aim to enhance leadership development, inform organizational strategy, and shape policy frameworks that support the responsible and sustainable adoption of AI. A conceptual framework is proposed to link leadership challenges, responses, and outcomes, offering a structured approach to managing the complexities of AI integration.
Albannai et al. (2025) studied this question.