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By Aster Angagaw
October 14, 2025

Creating Space for Innovation in the Age of AI

In most workplaces, play is treated as a luxury, something that happens off the clock or outside the realm of “real work.” Yet in every innovative organization I have led or observed, play is not a distraction from productivity; it is the engine of it.

Play fuels curiosity. Curiosity fuels creativity. Creativity fuels growth.

And in the age of AI, where efficiency is increasingly automated, the human capacity for imagination has become our most essential form of intelligence.

We cannot expect innovation without imagination, and imagination needs psychological space to thrive. When people feel safe enough to experiment, question, build, and even fail without fear, they enter what I call the creative confidence zone, the space where real transformation happens.

Creating that space does not come naturally to organizations built on hierarchy and control. It requires intentional leadership that protects the conditions for play, especially as AI changes how we work, think, and create.

Reframing Capital: The ROI of Play

What if play were treated as a strategic investment, not a personal indulgence?

Play is not about ping-pong tables or perks. It is about psychological safety, curiosity, and experimentation, the raw ingredients of innovation.

In an AI-powered world, data and algorithms can optimize what is, but only human imagination can envision what could be.

Play bridges that gap. It allows people to connect patterns, challenge assumptions, and generate insights that no model can replicate.

Leaders who invest in play understand that it is not the opposite of work, it is the antidote to stagnation.

Research from Harvard’s Amy Edmondson shows that psychological safety—the belief that one can take risks without fear of punishment—is one of the strongest predictors of innovation and team performance (HBR, 2025; ASQ, 1999). Neuroscientists such as Daniel Siegel and Rex Jung have found that when people experience emotional safety, the prefrontal cortex—the brain’s creative and problem-solving center—is most active. When fear dominates, that capacity shuts down.

The cost of suppressing play is measurable:

  • Lower innovation velocity. Teams default to predictable solutions.
  • Erosion of trust. People stop contributing original ideas.
  • Loss of human advantage. As AI scales pattern recognition, humans must scale imagination.

Play is not a distraction from performance; it is the differentiator in an intelligent enterprise.

Leadership Reflection: Creating Safe Space for Innovation

Early in my career, I equated professionalism with restraint, believing that the less emotion or experimentation a leader showed, the more serious they appeared. Over time, I learned the opposite is true.

Teams do not innovate because of process alone; they innovate because they feel safe enough to play.

When leaders encourage exploration without attaching outcomes to every idea, they give people permission to stretch their thinking. Some concepts will fail, but others will reshape how the organization learns and evolves.

The goal is not perfect execution; it is psychological safety, the freedom to wonder, test, and imagine without fear of failure. That is where true innovation begins

Teams That Play Together

One of the most underestimated drivers of innovation is the social bond that play creates.

When teams play together, through shared experiences, creative challenges, or informal collaboration, they build trust that no meeting agenda can replicate.

Play lowers defenses and strengthens connection. People who have laughed together find it easier to learn together. They debate more openly, take smarter risks, and extend more grace when things go wrong.

Organizations that make space for shared play, not as entertainment but as renewal, see measurable dividends in creativity, resilience, and cohesion. Google’s Project Aristotle found that psychological safety was the number-one predictor of high-performing teams, stronger than skill or tenure (re:Work guide).

In the age of AI, as digital collaboration replaces many in-person moments, these human bonds are the glue that keeps innovation alive. Technology can connect us; play reminds us why connection matters.

From Play to Performanceerformance

Consider how the most innovative organizations use play as a discipline:

Each example underscores a deeper truth: play is not the opposite of discipline; it is a higher form of it. Because disciplined play, guided by curiosity, boundaries, and respect, is where innovation compounds.

Reflection Questions for Leaders

  • When was the last time your team laughed or played while solving a real problem?
  • How do you respond when someone brings an idea that sounds too bold or too unproven?
  • Do your meetings create psychological safety or performance anxiety?
  • Where can AI automate tasks to free your team’s cognitive space for creativity?
  • How do you celebrate exploration, not just success?

Play, like trust, grows in the absence of fear. And in the age of AI, fear of imperfection is the fastest way to fall behind.

The Return on Imagination

The return on play is not measured in hours or outputs. It is measured in energy, adaptability, and insight.

Play sharpens our uniquely human edge: empathy, intuition, and imagination—the skills AI cannot replicate but can amplify when paired with purpose.

When we design organizations that take play seriously, we are really saying:

  • It is safe to think differently.
  • It is safe to experiment with technology.
  • It is safe to dream beyond the algorithm.

Play builds the muscle memory of innovation, a culture that does not wait for disruption but creates it.

Closing Thought

AI may change the tools of innovation, but play will always define its spirit.

Innovation begins where fear ends, and fear ends where play begins.

About the Author

Aster Angagaw is an experienced Fortune 500 executive and author of We Are So Much More. She has led multi-billion-dollar P&Ls, scaled organizations across continents, and built high-performing teams at the intersection of people and performance. Through Astellara, she advises companies and leaders on integrating culture, strategy, and innovation to drive sustainable growth in the age of AI.

Author’s Note

This article is part of the ongoing Seven Dimensions of Organizational Thriving series, exploring how leaders can turn timeless human principles into modern sources of organizational capital. Previous topics include integration, self-care, community, growth, and money. Upcoming issues will explore purpose and work.

This article was prepared with the support of AI-enabled research and editing tools to enhance clarity, readability, and citation accuracy. All insights, reflections, and leadership perspectives are original to the author.