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    Principal Financial Group Integrates AI Upskilling with Emotional Intelligence

    By upskilling 90% of its workforce in AI and emphasizing emotional intelligence, Principal Financial Group is redefining the future of work, where technology and human skills coexist to drive business success.

    forbes.comAugust 31, 20262 min read

    Key Facts

    • 90% of Principal's 19,000 employees upskilled in AI, enhancing competitive tech positioning.
    • AI + EI approach reveals a strategic shift towards human-centric tech integration for better ROI.
    • Enterprise-wide EI training fosters a culture of adaptability, reducing turnover and boosting morale.
    • Principal's focus on human skills indicates a vulnerability in competitors lacking emotional intelligence.
    • Emphasizing EI alongside AI suggests long-term financial gains through improved employee performance.

    Summary

    Summary

    Principal Financial Group successfully upskilled over 90% of its 19,000 employees in AI fluency and data literacy. The company, led by CHRO Lisa Coulson, recognized the importance of combining technical skills with emotional intelligence (EI) to enhance employee engagement and customer interactions. This dual focus on AI and EI positions Principal as a leader in the financial services industry.

    Background

    Principal Financial Group is a Fortune 500 financial services company with a history spanning more than 147 years. It serves approximately 82 million customers across over 80 markets, providing retirement plans, investments, and employee benefits. Before the deployment of AI training, the organization faced the challenge of ensuring its workforce was equipped to leverage new technologies effectively while maintaining strong human skills.

    Challenge

    The primary challenge was to enhance the workforce's ability to use AI tools confidently in their daily tasks while simultaneously fostering essential human skills like empathy, communication, and trust-building. The goal was to create a balance between technological proficiency and interpersonal capabilities.

    Solution

    Principal implemented a comprehensive upskilling program that focused on AI fluency and data literacy for over 90% of its employees. This initiative was designed to embed AI directly into workflows, enabling employees to work more efficiently and focus on higher-value tasks. Concurrently, the company invested in EI training across all levels, integrating skills like communication, collaboration, and self-awareness into core development experiences. Senior leaders received additional support through executive development and personalized coaching.

    Results

    As a result of these initiatives, Principal Financial Group has successfully upskilled more than 90% of its workforce in AI fluency and data literacy. The organization is now better positioned to navigate the complexities of modern work, ensuring that employees can apply AI insights with human judgment and empathy.

    Key Insights

    Organizations that excel are those that harness both technical skills and emotional intelligence. Training in EI should not be limited to top executives but should be integrated throughout the organization to maximize employee potential. A balanced approach to AI and EI can enhance decision-making, trust, and overall workplace culture.

    Customer Testimonial

    "On the one hand, we've upskilled more than 90% of our employees in AI fluency and data literacy so they can confidently use these tools in their day-to-day work. On the other hand, we're continuing to build human skills like empathy, communication, and trust-building." — Lisa Coulson, Senior Vice President and Chief Human Resources Officer, Principal Financial Group.

    Entities Mentioned

    Companies

    Principal Financial Group
    LEADx

    Technologies

    AI
    emotional intelligence (EI)

    People

    Lisa Coulson
    Kevin Kruse

    Organizations

    Fortune 500

    Key Concepts

    AI fluency
    emotional intelligence
    human skills
    workforce upskilling
    organizational culture
    leadership development
    employee engagement
    change management

    Definitions

    AI fluency
    The ability of employees to understand and effectively use artificial intelligence tools in their work.
    emotional intelligence (EI)
    The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.
    upskilling
    The process of teaching employees new skills to enhance their capabilities and adapt to changing job requirements.
    change management
    A systematic approach to dealing with the transition or transformation of an organization's goals, processes, or technologies.
    leadership development
    Programs and practices aimed at enhancing the skills and capabilities of current and future leaders within an organization.

    Use Cases

    • Embedding AI into workflows
    • Training employees in emotional intelligence
    • Integrating human skills into core development experiences
    • Using AI to improve efficiency and decision-making
    • Implementing leadership programs for senior leaders
    • Conducting enterprise-wide relationship skills training

    Frequently Asked Questions

    What is the significance of upskilling in AI for employees?

    Upskilling in AI is crucial as it enables employees to confidently use AI tools in their daily work, enhancing productivity and decision-making capabilities.

    How does emotional intelligence complement AI in the workplace?

    Emotional intelligence complements AI by ensuring that insights generated by AI are applied with human judgment, empathy, and context, which adds value to the decision-making process.

    What are the key human skills emphasized by Principal Financial Group?

    Principal emphasizes skills such as empathy, communication, collaboration, adaptability, and critical thinking, which are essential for navigating complex work environments.

    How does Principal integrate EI training across its workforce?

    Principal integrates EI training enterprise-wide, ensuring that all employees, not just executives, have access to programs that enhance their communication, collaboration, and self-awareness skills.

    What role does leadership development play in Principal's strategy?

    Leadership development is a critical component of Principal's strategy, equipping senior leaders with the skills needed to navigate complexity and lead with clarity and empathy.

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