What are the fundamental leadership capabilities that are needed for an era of exponential technology and AI innovation?

AI requires responsible thinking from the management. They need to understand the business need and not just go for "having some AI in the company". Education is needed on all levels and do not forget one thing. AI  is really important to be on the competitive edge AND requires enormous of amount of energy. Use it responsibly.

Leadership comes with its own territory and learning how to integrate it with technology especially with AI will always come with challenges. Knowing which fundamental is of the leadership group and AI building blocks is helpful. One of the questions asked is if it is a leadership attribute is actually important and how to apply it to AI innovation as well.

I suggest don't isolate AI from other technologies or projects. Leadership must be able to adapt to new or emerging technologies while managing the day to day projects and activities. So, a great leadership must have an open mind to new ideas, set a culture of experimentation (and align the metrics to reflect that). Tomorrow's leaders are just people eager to learn, understand new challenges and see a way of benefiting the company from their use. 
Innovative leaders challenge status quo by using the right tools or principles (i.e. Function Follows Form method) and understanding what are the constraints that are or could prevent innovation from happening as expected. 
So, 2 critical capabilities needed: Listening and Challenging

AI raises deeply human issues like bias, privacy, accountability. These aren’t just technical problems; they affect real lives. Leaders must drive responsible innovation from day one, ensuring ethics, transparency, and inclusion are built in, not bolted on. Trust is the true currency of this era.

From my hands-on experience working alongside both senior executives and middle managers, leadership today demands much more than just technical know-how. The key is balancing fast-moving AI innovation with real-world human judgment. Leaders must connect technology to people, building trust, fostering adaptability, and maintaining ethical standards. It’s about understanding AI’s power to boost efficiency without losing sight of long-term risks or the impact on teams. The best leaders I’ve seen create room for their people, especially during uncertain times. They know when to push for speed and when to pause for reflection, bridging the gap between rapid tech advances and responsible decision-making. Ultimately, successful leadership means guiding teams through change with clarity and empathy.. not just adopting AI, but shaping how it serves the organization and its values.