Microsoft CEO Satya Nadella has emphasized that emotional intelligence, or EQ, is becoming a critical workplace superpower in the age of artificial intelligence. Speaking in a recent conversation with Axel Springer CEO Mathias Döpfner on the "MD Meets" podcast, which aired on November 29, Nadella stressed that while IQ remains valuable, it is not sufficient on its own—especially as AI takes over increasingly complex technical tasks. “I’ve always felt, at least for leaders, if you just have IQ without EQ, it’s just a waste of IQ,” Nadella said. He highlighted that empathy and social intelligence are not just soft skills but essential business capabilities that drive innovation and collaboration. The discussion touched on Microsoft’s evolving workplace strategy, including its plans to bring more employees back to the office early next year. Nadella suggested that human interaction remains vital in an AI-driven world. He described the physical workplace as “the best collaboration tool” and noted that in-person work helps foster the kind of connection and trust needed for high-performing teams. However, he also cautioned against being rigid or dogmatic about return-to-office policies, acknowledging the need for flexibility. Nadella’s comments come amid a broader shift at Microsoft as the company accelerates its AI ambitions. In recent months, he has restructured leadership to strengthen the company’s position in the AI race. In November, he appointed Rolf Harms—a veteran of Microsoft’s cloud transformation—to advise on AI economics. The company is also advancing its superintelligence initiative, aiming to develop artificial general intelligence capable of outperforming humans across a wide range of complex tasks. Despite these strategic moves, Microsoft has also undergone significant workforce reductions this year. While the company has laid off thousands, a spokesperson clarified that most of the cuts were not performance-based but part of a broader effort to streamline operations and improve efficiency. As AI automates more routine and technical work, experts across industries agree that soft skills like creativity, problem-solving, and emotional intelligence are becoming more valuable. Executives and workplace transformation leaders have told Business Insider that these human-centric abilities are increasingly critical for navigating uncertainty, leading teams, and driving innovation in an era where machines handle much of the heavy lifting.