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    Why your gut instinct matters more than ever in a data-driven world

    February 26, 2025 • by Heather Cairns-Lee, Eugene Sadler-Smith in I by IMD Book Club

    Heather Cairns-Lee from IMD and leadership expert Eugene Sadler-Smith discuss why intuitive intelligence is a critical skill in a data-driven world....

    IMD’s Heather Cairns-Lee and leadership expert Eugene Sadler-Smith discuss why, in a data-driven world, intuitive intelligence is a critical skill that enhances decision-making, enabling leaders to act decisively in uncertainty.

    Intuitive intelligence is about noticing your gut feelings, your hunches, understanding why you've had them, interpreting them, tuning in and translating what they're trying to tell you, and then using that knowledge and that intelligent use of intuition to take better decisions in your professional life.”
    - Eugene Sadler-Smith

    In today’s world of artificial intelligence, big data, and analytics, it may seem that intuition has no place in decision-making. However, ignoring intuition could be a mistake, according to Eugene Sadler-Smith, a leading expert on intuition and decision-making. In his latest book, Trust Your Gut: Go with your intuition and make better choices, he introduces the concept of intuitive intelligence – a skill that can be developed to sharpen ‘instincts,’ facilitate faster decisions, and complement analytical thinking.

    During an I by IMD Book Club conversation with Affiliate Professor of Leadership and Communication Heather Cairns-Lee, Sadler-Smith explored the powers and perils of intuition and how it can be harnessed to navigate complexity, uncertainty, and high-stakes leadership challenges.

    Sadler-Smith defines intuition as “knowing without knowing how or why you know.”

    What is intuitive intelligence?

    Most people have experienced moments when they “just knew” something – whether it was sensing that a person could not be trusted, deciding to take an opportunity that did not appear perfect on paper, or feeling uneasy about a situation without being able to explain why. This is intuition in action.

    Sadler-Smith defines intuition as “knowing without knowing how or why you know.” It is not magic – it is the brain processing vast amounts of information quickly, based on experience, pattern recognition, and learned expertise.

    He argues that effective decision-making requires three types of intelligence:

    • Rational intelligence – analytical, data-driven thinking.
    • Emotional intelligence – the ability to understand and manage emotions in oneself and others.
    • Intuitive intelligence – the capacity to recognize, interpret, and apply intuition effectively in decision-making.

    Just as emotional intelligence is considered essential in leadership, intuition supports decision-making. Like any skill, it can be strengthened with practice.

    The human brain is wired to take cognitive shortcuts, and intuition can sometimes reinforce stereotypes instead of providing objective insights.

    When should you trust your gut?

    Intuition is a powerful tool, but it is not infallible. The key lies in understanding when to rely on it and when to treat it with caution. In certain situations, intuition can be a decisive advantage, especially in uncharted territory where probabilities are impossible to quantify. Individuals with deep expertise in a particular subject are more likely to have reliable gut instincts. Their experience enables them to recognize patterns and make quick, informed judgments without the need for extensive analysis.

    It also plays a crucial role in fast-moving, high-pressure environments where there is insufficient time to process all available data, such as making real-time decisions in a crisis. Additionally, it proves invaluable in complex, high-stakes situations where logical analysis alone may not provide a definitive answer.

    However, there are circumstances in which intuition can lead decision-makers astray. Without sufficient experience in a given area, what may feel like intuition could simply be a guess. Since intuition relies on pattern recognition, individuals lacking expertise may base their decisions on faulty assumptions rather than well-informed instincts.

    Bias presents another significant risk. The human brain is wired to take cognitive shortcuts, and intuition can sometimes reinforce stereotypes instead of providing objective insights. Lastly, when reliable data is available and time allows for thorough analysis, intuition should complement logical evaluation as the primary decision-making tool.

    Developing intuitive intelligence involves learning to distinguish between genuine intuition and misleading impulses. The more refined this skill becomes, the better-equipped individuals are to recognize when to trust their gut – and when to question it.

    How to develop intuitive intelligence

    Strengthening intuition and integrating it into effective decision-making requires a structured approach. Sadler-Smith outlines the following key steps for enhancing intuitive intelligence.

    The first is to develop intuition as a skill through deliberate practice. The next is to increase awareness of intuitive signals by paying closer attention to subtle cues the subconscious mind provides.

    Once intuitive instincts become more recognizable, it is essential to discern when they should be trusted. Not every gut feeling is reliable, and learning to separate authentic intuition from misleading impulses is a critical aspect of honing intuitive intelligence. Another effective strategy is to allow the unconscious mind to process complex problems in the background – a concept often referred to as “thinking without thinking.” Sometimes, stepping away from an issue enables intuition to surface a solution more effectively than conscious deliberation. This is where an intuition (which gives us a sense of direction) can lead to an insight (in which we ‘see’ the solution to a perplexing problem in a ‘light bulb’ moment).

    Correctly interpreting intuition is just as important as recognizing it. As shown in the book, this requires tuning in to intuitive messages using metaphors and images and translating them into clear, actionable insights. Further refinement comes from challenging and debiasing hunches and validating them with data, feedback, and previous experiences. Finally, incorporating intuition into regular decision-making ensures it is balanced with logical analysis to achieve optimal outcomes.

    By practicing these steps, intuition can evolve from a vague instinct into a strategic leadership asset.

    “With this in mind, some organizations are attempting to develop "artificial intuition," designing algorithms that aim to replicate certain aspects of human intuition.”

    Why intuition is a competitive edge in an AI-driven world

    As artificial intelligence assumes an increasing role in analytical tasks, human intuition is becoming more valuable, not less. While machines excel at processing data, they lack the ability to interpret emotions, context, and nuance. In this respect, intuition remains a defining competitive advantage for humans in the workplace.

    The ability to detect patterns, interpret ambiguous situations, come up with truly novel insights, and make gut-based decisions provides a critical edge in leadership, especially in an era increasingly shaped by artificial intelligence.

    With this in mind, some organizations are attempting to develop “artificial intuition,” designing algorithms that aim to replicate certain aspects of human intuition. However, whether a machine can truly replicate our unique abilities to read subtle social cues, empathize with other humans, and come up with truly creative solutions to problems remains uncertain. While AI can generate data-driven recommendations, it lacks the depth and judgment that comes from the human experience.

    To use intuition effectively, treat your gut feelings as signals rather than instructions – valuable clues to guide, not replace, your decision-making.

    How to make intuition work for you

    Intuitive intelligence is a powerful skill you can cultivate. To use intuition effectively, treat your gut feelings as signals rather than instructions – valuable clues to guide, not replace, your decision-making. The most effective leaders learn to balance intuition with analytic intelligence to reach smarter decisions.

    As artificial intelligence increasingly handles analytical tasks, your intuition becomes even more critical. In a data-driven world, human intuitive intelligence sets great leaders apart by enabling them to act decisively with uniquely human insight. Make intuition your competitive advantage – it’s your leadership edge in the age of AI.

    Authors

    Cairns-Lee_Heather

    Heather Cairns-Lee

    Affiliate Professor of Leadership and Communication

    Heather Cairns-Lee is Affiliate Professor of Leadership and Communication at IMD. She is a member of IMD’s Equity, Inclusion and Diversity Council and an experienced executive coach. She works to develop reflective and responsible leaders and caring inclusive cultures in organizations and society.

     

     

    Eugene Sadler-Smith

    Professor of Organizational Behaviour at Surrey Business School

    Eugene Sadler-Smith, Professor of Organizational Behaviour at Surrey Business School brings his deep expertise in leadership development and intuitive intelligence to the conversation, offering unique insights and actionable strategies for leaders, entrepreneurs, and professionals.

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