Why Culture Still Drives Performance in the Age of AI

·
Listen to this article~5 min
Why Culture Still Drives Performance in the Age of AI

Dalia Feldheim, former global CMO and organizational psychologist, explains why emotional intelligence and psychological safety are critical for AI success and business performance.

### The ROI of Interaction: Why People Still Matter Companies are pouring millions into AI tools, but they're missing something critical: the culture that makes those tools actually work. That's according to Dalia Feldheim, former global CMO and organizational psychologist, who spent over 16 years at P&G and later served as CMO and VP of Marketing APAC at Electrolux. Now she works with organizations on leadership, psychological safety, and workplace culture. In an exclusive interview with the Mental Health Speakers Agency, Feldheim explains why emotional intelligence will become a stronger differentiator as AI adoption accelerates, why fear can damage performance over time, and why investment in people remains central to business results. ### Q1: How does organizational culture translate into measurable business ROI, particularly as AI adoption accelerates? Dalia Feldheim: "I always used to say ROI is not return on investment, but return on interaction, because what really drives business is people: how you work with your employees and drive motivation and performance, and how you work with your stakeholders." "Sales is all around relationships, and today that matters more than ever because when AI means IQ is in your pocket, EQ, emotional intelligence and relationships become your differentiator." She points out that many companies are spending millions on AI adoption tools but not investing in building the right culture to enable that adoption. "There are two things at play here. How we develop people, and how we allow them to experiment and fail, will enable AI adoption," she says. Feldheim also emphasizes that you can't outsource soul. "AI can help us with so many things, productivity, processes, etc., and it's a great companion. I'm now writing a book with my AI, but the thoughts, the creation, the human interaction and the storytelling are mine." ### Q2: What role does psychological safety play in driving innovation, collaboration and performance? Feldheim: "I came across the term when I started exploring the territory of culture at work and the great work of Amy Edmondson on psychological safety." Google's Project Aristotle aimed to understand the number one driver of high-performing teams. They thought it might be around vision or enabling, but they found psychological safety was the number one driver. "Amy's work really explains why. The number one driver of high-performing teams is psychological safety, and the number one driver of psychological safety is leaders admitting mistakes or creating a culture that embraces failure," Feldheim explains. When you do that, you get more collaboration because people are not afraid to voice their opinion or share feedback. You get better, more productive collaboration. You get better innovation because people are not scared to share crazy ideas. They know they won't be penalized for coming up with ideas, and that leads to more creativity. "There are fewer mistakes. There are mistakes, but they are embraced and you learn from them, so you're not creating the same mistake twice," she adds. You also see it driving motivation because people see you as who you are. How we approach failure, how we offer help and feedback, how open we are to raising ideas, and diversity, equity and inclusion all affect motivation and engagement in the company, and hence the culture's resilience over time and through change. "We're seeing Amy's work on psychological safety become the core of what culture should be focusing on to enable, at the end of the day, the bottom line," Feldheim concludes. ### Q3: Where do leaders most often go wrong when trying to build culture? Feldheim: "Leaders often focus on the tangible aspects of culture—perks, office design, or even values statements—without addressing the underlying behaviors that drive psychological safety. They might say they want innovation, but then punish failure. Or they claim to value feedback, but react defensively when it's given." The key is to model the behavior you want to see. "If you want a culture where people take risks, you need to admit your own mistakes. If you want collaboration, you need to actively seek input and act on it. It's not about what you say; it's about what you do." She also notes that culture is not a one-time initiative. "It's an ongoing practice. You have to continually nurture it, especially during times of change like AI adoption. That's when psychological safety is most tested and most needed." ### The Bottom Line As AI continues to transform how we work, the human elements—emotional intelligence, psychological safety, and genuine connection—become even more critical. Companies that invest in culture alongside technology will be the ones that thrive. As Feldheim puts it, "You can't outsource soul."