Abstract: Artificial intelligence technologies are fundamentally transforming workplace dynamics at an unprecedented pace, requiring leaders to make critical strategic choices about technological adoption. Rather than approaching AI implementation as an automation-first initiative that risks displacing workers, forward-thinking executives are embracing an augmentation mindset that enhances human capabilities through technology partnership. This article presents a comprehensive framework for AI-augmented leadership, detailing the five core competencies required: strategic visioning, digital integration, talent development, responsible innovation, and change management. Through case studies spanning healthcare, manufacturing, and transportation, the framework demonstrates how successful leaders are navigating AI transitions by assessing impacts, designing human-centered visions, implementing thoughtful change management, carefully deploying technologies, and establishing continuous governance mechanisms. By viewing AI as an ally rather than a replacement for human workers, leaders can transform potential disruption into strategic advantage while fostering workplaces where technology amplifies rather than diminishes human potential.