As Nokia pivots toward AI and data centers, CEO Justin Hotard warns that the core of leadership must adapt to a generation that expects technology to move at the speed of thought.
In a candid assessment of the changing corporate landscape, Nokia CEO Justin Hotard has issued a wake-up call to global business leaders regarding the integration of Artificial Intelligence (AI) into the workforce. Speaking in December 2025, Hotard highlighted a profound shift driven by what he terms an "AI-native" generation-young professionals whose expectations for speed and efficiency are challenging traditional management structures. This perspective comes as Nokia itself undergoes a significant transformation, pivoting from its legacy in mobile infrastructure toward high-growth markets in AI and data centers.
According to reports from Fortune, Hotard recently engaged with a group of early-career talents at Nokia, a conversation that left a lasting impression due to the group's palpable "impatience." Unlike previous generations who adapted to technology, this cohort views AI tools not as novelties but as baseline requirements for productivity. For Hotard, who took the helm at Nokia earlier this year, this cultural shift is as critical as the technological hardware the company produces.
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The core of Hotard's argument rests on the distinction between technological capability and human leadership. While AI can process data and accelerate outputs, it lacks the emotional intelligence required to manage teams.
"Yet the core of leadership does not change. AI cannot build trust. It cannot set expectations. It cannot create a culture that learns, improves, and takes responsibility. That still comes from people." - Justin Hotard, Nokia CEO (via AOL/Fortune)
Hotard emphasizes that successful leaders in this new era will be those who can coach and listen, enabling teams to move with the velocity that AI permits while maintaining the human trust that machines cannot replicate. This viewpoint aligns with broader industry observations that while technical skills are evolving, the "soft skills" of management are becoming increasingly premium assets.
Hotard's comments on workforce culture are deeply intertwined with Nokia's aggressive operational restructuring throughout 2025. The timeline of events illustrates a company positioning itself at the center of the AI boom:
The appointment of Hotard was a clear signal from Nokia's board. Sari Baldauf, Chair of Nokia's Board of Directors, noted upon his hiring that Hotard possesses a "strong track record of accelerating growth" specifically in the AI and data center markets-areas deemed critical for the company's future. This contrasts with previous strategies that focused heavily on traditional telecommunications hardware. Under Hotard, the focus has shifted to providing the "networking infrastructure" that underpins the global AI economy, evidenced by deals such as the one with CoreWeave in late 2024.
The convergence of an AI-native workforce and AI-driven infrastructure presents complex implications for the broader business world.
Generational Workforce Shift: Forbes highlights a "wholesale changing of the guard" in the IT sector. As experienced veterans retire, they are being replaced by younger talent who may lack deep institutional knowledge but possess advanced AI fluency. Hotard's leadership challenge is to bridge this gap-ensuring that the "impatience" of the new generation results in innovation rather than instability.
The Infrastructure of Intelligence: From a technological standpoint, Nokia is betting that AI is not just a software phenomenon but a hardware challenge. As Hotard noted in Business Chief, the surge in AI investment is sustainable because it mimics the foundational build-out of the early internet. This places network operators in a critical position: they must upgrade physical systems to handle the immense data loads required by AI applications, or risk obsolescence.
Looking forward, Nokia's strategy involves not just selling hardware, but integrating AI internally to reshape its own operations. The company has explicitly stated goals to "improve AI skills in your workforce" and implement value-added AI products. The recent formation of the Technology and AI Organization suggests that 2026 will see accelerated product releases centered on "AI-native" networks.
For Hotard, the immediate task is managing the cultural friction of this transition. As he indicated to Fortune, the leaders who succeed will be those who can harness the speed of Gen Z while providing the steady, human-centric guidance that algorithms cannot supply. In doing so, Nokia aims to prove that a legacy telecommunications giant can successfully reinvent itself as a pillar of the AI age.
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