What will AI mean for executives? Will AI overturn corporate structures? Will it require new skills from executives?
Spoiler alert: I don’t expect dramatic changes — I’ll lay out below why I think so — but/and think there are better questions to ask. Let’s go!
I don’t expect dramatic changes — I’ll lay out below why I think so — but/and think there are better questions to ask. Let’s go!
So there’s a debate going on if AI will change the org chart and require radically new skill sets from executives. Will AI, for example, make middle management obsolete? Will it require top-level execs to re-skill as a consequence?
AI in the organization
I’m aware of the speculation, and understand that people are (depending on where they come from) either hyped up about this or dreading it. But I honestly don’t expect that corporate structures will shift that dramatically for quite some time.
One, corporate structures have been remarkably resilient for a surprisingly long time. 50 years? 100? Yes, lots has changed but we still have the executives and the workers and some (often: many) layers of middle management in between. Tools and management styles have changed, as has the day-to-day work, but the org chart has stayed pretty stable.
Two, AI is sprinkled across all levels of the org chart. Much like digital tools, AI tools will increasingly be added across the organization. PCs and the internet have replaced some types of jobs and created others, it has shifted value around a lot, so this debate certainly is important and of consequence. But overall, the tools didn’t so much replace labor or even reduce the workload: As per Jevons paradox, the efficiency gains mostly just led to higher expectations. I expect lots of AI tools large and small to augment every day tasks.
Three, what will change, most likely, is power dynamics. To paraphrase the old internet adage about working above or below the API, depending on their job people will feel AI very differently depending on their work context as they either use AI to amplify their work or are increasingly told by AI what to do, or are even surveilled by AI in their work. So that’s a big differentiator for sure. I’m not sure that middle managers are exempt from that, either.
Four, one place where I can see AI play an increasing role is as a type of lubricant when it comes to communications and coordination. AI meeting notes, smarter search of in-house chat channels and data bases, summaries and reminders, that kind of thing: Coordination and information drudge work. Will it be good at it? I think much better than now, but far from perfect. But so is the situation today.
Five, what about middle management? That’s about people problems anyway, and no tech solution will fix those.
AI and executive leadership skills
Here’s a hot take: Leadership skills won’t really change. Hear me out! I truly believe that great leaders — which is what executives are supposed to be — need to have strong analytical skills, lead by example, be great communicators. They need to be great at motivating people and at prioritizing. None of that is new! Good leaders — executives or middle managers alike — have always had those characteristics. Rigid and controlling executives have always been bad leaders in my book.
One characteristic I think will be more important than ever is a high tolerance for ambiguity, maybe even the skill to thrive under ambiguity. Because the world certainly is less stable right now than it was before, at every level. Not worse, but there’s more complexity and ambiguity than ever before. AI is just a part of that.
Some things change, though
While I think that corporates won’t be changed too dramatically by AI, I do think that if we zoom out a bit, we see one area where it’ll really change the dynamic. For small companies, I would expect AI to be a real amplifier. For a small startup, I would not be surprised to see it go from 0 to 1 much, much faster than traditionally. That first prototype, initial website, sales pipeline, pitch deck – all that I can imagine going much faster. It’s hard to tell how exactly this will play out and I expect it to be very context-dependent, but I think it’ll be possible to bootstrap a little faster and a little further. If that holds true, than it lowers the initial commitment and the associated risks quite a bit, which might even give new folks a chance. Since these tools are likely to be available to everyone, they probably won’t give anyone any particular edge, but if anything, I think this is where we’ll see much more qualitative change.
