Survey: AI to usher in new middle management era

As generative AI begins takes hold in business, who does what work and how organizations will be structured will inevitably change, particularly at the leadership and management levels, according to a new survey from Capgemini in which 1,500 managers from 500 organizations and 15 countries participated.

The majority (51%) of respondents believe that decision-making positions will become more niche as a result of the use of generative AI. This will mean that leaders will also need to be experts in various areas such as data analysis, AI strategy, ethical assessment, and risk management.

As a result, 53% of managers surveyed believe generative AI will shift organization structures to become more diamond-shaped, with fewer junior positions and a larger midlevel management layer. Junior roles are expected to decrease from 44% of the organization today to 32% in three years, while middle managers will increase from 44% to 53%. 

“Since the operational model is changing, it is very important to understand the middle manager’s role and support that development,” said Caroline Segerstéen Runervik, head of Nordics at Capgemini. “There will be pressure on new hires if [a company doesn’t] do better change work around AI and really work to bring in young, technically strong employees. Here, as leaders, we have a great responsibility.”

Nearly two-thirds (65%) of managers state in the report that generative AI can facilitate things such as planning and forecasting and 57% believe AI can be used to manage recruitment and similar tasks. 

Moreover, according to the survey, generative AI could accelerate the career development of entry-level employers into frontline management roles, with 51% of respondents believing this will happen in their industry in the next three years.

Less than half of respondents (47%), however, said that current use of gen AI has made their management role more strategic.

Meanwhile, Amazon announced plans to cut down on managers in a bid to strengthen its culture — something that may not be the best route for other organizations.