As artificial intelligence continues to reshape industries, economists are increasingly focusing on the human elements that machines can’t replicate. Linda Nazareth, a senior fellow at the Macdonald-Laurier Institute and an economist with decades of experience analyzing labor markets, argues that soft skills such as empathy and curiosity could serve as a protective shield for workers amid AI-driven disruptions. In a recent interview with Business Insider, Nazareth emphasized that while AI excels at data processing and routine tasks, it falls short in areas requiring emotional intelligence and innovative thinking.

This perspective comes at a time when AI adoption is accelerating across sectors, from finance to healthcare. Nazareth points out that empathy allows workers to build meaningful connections with clients and colleagues, fostering collaboration that AI tools like chatbots struggle to emulate authentically. Curiosity, she adds, drives continuous learning and adaptability, enabling professionals to ask the right questions and pivot in unpredictable environments.

The Human Edge in an Automated World

Nazareth’s insights align with broader trends highlighted in reports from consulting firms. For instance, a McKinsey analysis on AI in the workplace, as detailed in their 2025 report, notes that while nearly all companies are investing in AI, only a fraction feel mature in its implementation, underscoring the need for human skills to complement technology. Similarly, LinkedIn’s vice president Aneesh Raman, speaking to CNBC, stressed skills like creativity and compassion as essential for navigating AI’s global impact on workforces.

These soft skills aren’t just theoretical; they’re proving vital in real-world applications. In sales and customer service roles, empathy helps in understanding nuanced client needs that AI algorithms might misinterpret due to cultural or contextual subtleties. Nazareth warns that without cultivating these abilities, workers risk obsolescence as AI automates more cognitive tasks.

Skills That Withstand Technological Shifts

Beyond empathy and curiosity, Nazareth identifies other key attributes, including resilience and ethical judgment, as critical armor. Drawing from her book “Work Is Not a Place: Our Lives and Our Organizations in the Post-Jobs Economy,” she argues that the future belongs to those who can integrate AI as a tool rather than a replacement. This echoes findings from a Forbes article on 2026 workplace trends, which highlights how human-centric skills like leadership are gaining value as AI reshapes roles.

Education systems are also adapting. Economist Tyler Cowen, in comments to Business Insider, advocates for universities to teach AI usage over rote skills that machines handle better, preparing students for a hybrid human-AI workforce.

Preparing for an AI-Dominated Future

Industry leaders are taking note. A Reuters report on Business Insider’s own layoffs in 2025, where the outlet cut 21% of staff amid a shift to AI, illustrates the tangible effects of this transition. Yet, as Nazareth sees it, the disruption isn’t total; jobs requiring interpersonal finesse, such as coaching or policy-making, remain resilient, per insights from AI researcher Adam Dorr in another Business Insider piece.

For workers, the message is clear: invest in soft skills to thrive. Nazareth recommends practices like mindfulness training and cross-disciplinary learning to build this armor. As AI evolves, these human qualities could not only safeguard careers but also drive innovation, ensuring that technology enhances rather than supplants the workforce.

Long-Term Implications for Labor Markets

Looking ahead, economists like Nazareth predict a bifurcated job market, where AI handles efficiency and humans focus on empathy-driven value. This shift, supported by a CNBC discussion on AI’s modest but real workforce impact, suggests that while economic uncertainty plays a role, skill adaptation is key. Blue-collar paths, as explored in a CNA analysis, may gain appeal, but deepening expertise in any field remains the best defense against obsolescence.

Ultimately, Nazareth’s framework offers a roadmap for professionals and organizations. By prioritizing empathy and curiosity, workers can position themselves at the forefront of an AI-augmented era, turning potential threats into opportunities for growth and collaboration.