DEI Is In The Firing Line - But At What Cost? As AI reshapes the workplace, businesses that prioritise Diversity, Equity, and Inclusion (DEI) gain a strategic advantage - driving innovation, reducing bias, and staying competitive in a rapidly evolving economy.

When I ask around boardrooms, the consensus is that the future of work is upon us. The world is changing faster than ever and businesses are struggling to keep up. This challenging new normal also presents an opportunity to build more resilient workplaces through Diversity, Equity, and Inclusion (DEI). Recent political criticisms from the United States have called into question the merits of DEI policies - but at what cost?

Working with senior teams at multinational businesses I see Artificial Intelligence (AI) rapidly reshaping the workplace. Algorithms are already being used to determine who gets hired, promoted, or fired. Far from being the great equaliser, the Financial Conduct Authority (FCA) has already found worrying evidence of AI-powered hiring software displaying biases against minorities and womenⁱ. If governments and businesses are serious about preparing workers for the future, DEI is not an ideological stance or a corporate formality - I believe it is a strategic necessity for any organisation looking to innovate and compete.

In the "Year of Elections"; a record 3.7 billion people cast their votes in 2024, marking one of the most consequential election years in modern history. For many, these elections reflected deep anxieties - not only about the cost of living and geopolitical instability but also about the shifting nature of work and financial security for both them and their families. Yet, despite the evident need for businesses to future-proof their workforces, political leaders are undermining effective hiring practices for long-term economic competitiveness.

To critics, DEI can be dismissed as an unnecessary cost or a challenge to meritocratic principles. Are people really hired on their gender, race, ethnicity, religion, or appearance, over their performance? Have DEI mandates gone too far the wrong way? Are businesses actually doing themselves a disservice by appeasing DEI opponents?

Empirical research consistently contradicts these claims. According to McKinsey, FTSE 100 companies with the most diverse leadership teams outperformed their peers by 36%. Similarly, the Harvard Business Review indicates that diverse teams make better decisions 87% of the time. JPMorgan Chase CEO Jamie Dimon has openly stated that "DEI is not corporate charity - it is a business strategy" that strengthens problem-solving, risk management, and long term innovation.

Companies that invest in diverse workforces gain access to a broader range of perspectives, reduce blind spots in decision-making, and build more adaptive, forward-thinking teams. These are essential qualities in a world where AI is rapidly transforming industries and may be the difference between leading the market or being left behind. Scrolling through recent headlines would suggest that many companies are being influenced by this political moment to backtrack on previous DEI commitments. Since the roll-back of federal DEI programs, American behemoths such Meta, Walmart and McDonald's have all followed suit.

Some companies in the UK are taking a different approach. Cisco UK has integrated DEI into its long-term business strategy, conducting annual salary audits to ensure pay equity and leveraging direct leadership engagement to improve workplace inclusivity. HSBC and Rolls-Royce have adopted AI frameworks designed to prevent bias in hiring and workforce management. These firms understand that inclusion is not just an ethical consideration - it is a competitive advantage that is becoming increasingly essential for success.

While AI is undeniably enhancing efficiency and performance, it cannot be left unchecked. Without oversight, AI risks automating exclusion at scale, reinforcing systemic biases that businesses have spent decades trying to eliminate. Companies that fail to recognise this reality will soon find themselves trapped in a cycle of restricted talent pools, weaker decision-making, and diminished innovation - undermining their ability to compete in an AI-driven economy.

The question is no longer whether DEI is relevant, but whether businesses can remain competitive without it. The evidence suggests they cannot.