The tension in today’s workplace is hard to ignore. Underneath the upbeat all-hands meetings and AI-hyped road maps, a deeper anxiety simmers.

We’ve known for decades that we operate in a ‘VUCA’ world: volatile, uncertain, complex and ambiguous. First coined by the United States military and adopted by business leaders in the early 2000s, VUCA became a way to describe the dizzying pace of change brought on by widespread access to the internet, the threat of Y2K and the shockwaves following the September 11 terrorist attacks.

But it wasn’t just jargon. It was a diagnosis: our systems were built for stability, and the world had become anything but.

Trust issues

Fast forward to 2025, and VUCA feels more relevant than ever. Yet this time, we seem less prepared.

Economic headwinds, layoff rounds and the generative AI boom are compounding, creating what Daniel Zhao of Glassdoor called a “cumulative stacking effect” in a recent Fortune interview. Workers – especially Gen Z – are burning out fast. Nearly half would rather turn to ChatGPT than their manager for career advice, according to a survey of nearly 9,000 full-time employees by Resume.org.

That statistic is less about technology and more about trust. Something is breaking in the relationship between workers and institutions.

But we’ve been here before and can learn from our past. In the early 2000s, Millennials entered the workforce with low engagement, shaky job prospects and few role models for navigating a digital-first economy. Confidence was low. Connection was fragile. But over time, we adapted. We figured out how to grow again, even if the world remained chaotic.

Now, once again, we’re at a crossroads. But this time, I worry we’re choosing the wrong playbook. In light of all the advancements we are making on the technology front, the people side is failing to catch up.

A recent Upwork survey of 2,500 global C-suite leaders and workers found that 71 percent of full-time employees are burned out, and 65 percent are struggling to keep up with employer demands on their productivity. Meanwhile, 81 percent of C-suite leaders acknowledge they have increased demands on their employees.

The root problem? In moments of volatility, the instinct is to centralize control, cut ‘excess’ and double down on efficiency. That’s what we’re seeing now: learning budgets slashed, HR teams deprioritized and return-to-office mandates pushed as silver bullets. But those moves reflect a misunderstanding of the moment.

Investing in the future

To navigate complexity, we need to invest in capacity, not retreat from it. The companies that thrived in previous eras of disruption didn’t just digitize their systems. They built in slack – the operational buffer that allows for adaptability.

Slack is not waste. It’s a hedge against risk, a guardrail against burnout and a precondition for innovation. Yet today, it’s treated like a dirty word. The over-hiring hangover from the pandemic and the stigma of perceived inefficiency have made ‘lean’ the holy grail again. The risk? Single points of failure, brittle systems and exhausted teams.

We also need to experiment more, not less. But many leaders are falling back on rigid hierarchies and performance frameworks that reward compliance over creativity. If we want new outcomes, we need new models – not recycled rules from the pre-pandemic world.

And yes, AI can help – but only if it’s deployed with intention. Used well, AI can enhance organizational intelligence, helping leaders scan their environments, test hypotheses and identify emergent signals. Used poorly, it becomes just another tool for speeding up decisions without improving them.

Leading through chaos

The VUCA world didn’t end after 9/11 or the Great Recession or the COVID-19 pandemic. It just took on new shapes. The leaders who will guide us forward will be those who embrace the uncertainty, not with fear, but with preparedness.

They’ll invest in talent, not just tech. They’ll build systems with breathing room, not brittleness. They’ll lead with curiosity, not control. They’ll make space for experimentation, dialogue and shared intelligence.

If there’s one thing we should have learned by now, it’s this: in a VUCA world, the only safe move is to lead like it’s a VUCA world – with boldness, humanity and the humility to know we don’t have all the answers.

This isn’t about surviving chaos. It’s about leading through it, with eyes open and systems ready. Because in a VUCA world, the real risk isn’t volatility. It’s not being prepared for it.

Opinions expressed by The CEO Magazine contributors are their own.