AI takes over operational work from managers and forces companies to redefine expectations

AI is not just a new tool for the modern workplace; it is already, discreetly, reshaping the way some companies organize themselves. Companies like Amazon, Moderna and McKinsey are already eliminating layers of management, working to flatten organizations and implementing AI agents to automate routine tasks.

As AI rewrites the corporate organizational chart, humans can avoid some of the drudgery of management, according to industry leaders attending the Fortune Brainstorm AI conference.

Also read: Opportunities in the confusion: a career map in times of AI

Managers these days spend a lot of time bogged down in digital tools and administrative tasks, said Danielle Perszyk, cognitive scientist at Amazon’s AGI SF Lab: “Whether you’re a manager or an individual contributor, you’re tied to your computer screen, and all the productivity apps we use are actually undermining our productivity.”

AI agents functioning as “universal coworkers” and taking over some of these tasks could help managers escape this cycle, Perszyk said, allowing them to focus on strategy.

Aashna Kircher, general manager in Workday’s HR executive, said this could free up managers’ time for other types of work. “The role of the manager will be very much that of coach, facilitator and director of teamwork, which, theoretically, has always been the role,” she said.

Toby Roberts, senior vice president of engineering and technology at Zillow, said the shift toward AI agents could fundamentally alter the structure of management. Getting rid of the day-to-day minutiae could allow managers to oversee larger teams, he said.

However, as AI automates more of managers’ work, companies may need to reset expectations about what it means to manage people in the age of AI.

“Historically, we measure management by the results of teams, not necessarily by the human qualities of being a manager,” said Kircher. Organizations need to create “accountability and incentive structures that reward what will be absolutely critical going forward for people leaders.”

What AI can’t do

AI can also have negative downstream effects on interpersonal relationships if it is used excessively or inappropriately.

When managers rely too much on AI for collaborative work, organizations risk deteriorating people’s ability to work together effectively, said Kate Niederhoffer, chief scientist and leader at BetterUp Labs.

“Direct reports’ perception of their managers worsens the more they realize that AI and agents are used in moments of recognition or providing constructive feedback,” said Niederhoffer. “People realize that humans are better at these empathetic and more essentially human tasks.”

Some managers already struggle with the emotional side of leadership, with many becoming “accidental managers” — employees promoted for their professional talents rather than interpersonal skills.

But AI’s “synthetic empathy” — even when it’s sometimes more consistent than human interactions — isn’t the answer, said Stefano Corazza, head of AI research at Canva.

“The more AI there is, the more authenticity is valued,” he said. “If your manager really shows that they will dedicate time to you and that they care, that makes a big difference.”