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The Crisis and Transformation of the Manager in the Age of AI

AI is revolutionising the world of work, calling into question the traditional role of the manager

 (Adobe Stock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

For over a century, organisations have been built on a simple premise: the workforce consisted exclusively of people. It is on this idea that modern organisational models and the main management theories have been developed: the business as an organisation in which the manager’s role was to plan, organise, co-ordinate and control human labour. Today, in the age of artificial intelligence, that assumption is beginning to break down. And, in the midst of this transformation, one of the roles at risk of facing a crisis is precisely that of the manager.

In the organisational models of the future, artificial intelligence systems will, in fact, become an integral part of the workforce. Physical AI will introduce automation systems capable of understanding and managing physical space. It will become increasingly common to see humanoid robots moving around workplaces and automated systems operating in offices. AI agents will be capable of independently managing entire operational and decision-making processes. There will even be new managerial roles dedicated to coordinating work teams made up of people and digital agents.

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As this trend develops, organisations of the future will increasingly operate using ‘flat’ organisational models, characterised by few hierarchical levels and increasingly decentralised decision-making processes. If we add to this scenario the growing disinterest of Generation Z in managerial roles, often associated with excessive responsibility, stress and a poor work-life balance, it is easy to foresee an impending ‘managerial crisis’ on the horizon. Or at least a crisis for the role as we have known it to date.

New organisational models for AI

Artificial intelligence is rapidly making its way into Italian organisations: almost one in two workers already uses it in their day-to-day work. But the lag lies at another level: only one in four organisations has actually begun to rethink its processes, roles and working models with a view to artificial intelligence.

In most cases, AI has been introduced into Italian businesses, but it is used to improve existing processes rather than to build different organisations. Instead, there is a risk that artificial intelligence will be incorporated into models designed for a reality that no longer exists.

We need to fundamentally rethink organisations. And, with that, all training processes. Because all workers will need to update their skills and, at the same time, change their approach to work. They will have to learn how to use new AI solutions, but above all understand how to interact with machines, which will gradually take on more and more of the role of colleagues.

For this reason, it will be necessary to rethink workers’ roles, their career paths and how they gain experience. We must also develop learning models that enable the continuous and flexible updating of workers’ skills and the ongoing development of their cognitive and decision-making abilities, thereby avoiding the risk of losing individual and organisational know-how, and preventing a situation where people are less adept at reasoning and taking responsibility.

Are Italian managers ready for all this? Not exactly. According to research by the HR Innovation Observatory, one in five managers is unaware of the ethical implications of using AI, and 22 per cent lack the skills needed to understand which tasks to delegate to a machine and which to a human being. It is no coincidence that, according to the HR Directors interviewed, one of the main challenges in the coming years is precisely the evolution of managerial roles.

The new role of the manager

The role of the manager is set to undergo a radical transformation. For the first time in the history of business, managers will have to coordinate a workforce that also includes machines, such as intelligent agents capable of learning, analysing information, making recommendations, taking the initiative and collaborating with humans.

Whilst for decades their role has been associated with planning, monitoring and coordination, they will need to become a figure capable of empowering workers to become increasingly autonomous and accountable. Their success will also depend on the quality of the environment they create to enable people and intelligent systems to work together.

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And in this context, with organisational structures becoming increasingly flat, the organisational chart is also changing. It is highly likely that the manager of the future will no longer be a line manager, but rather a figure specialising in the management and coordination of people and intelligent systems, without formal authority over work teams.

A revolution for which businesses (and managers themselves) must begin to prepare. Because the challenge will be to envisage new organisational paradigms in the age of artificial intelligence. And competitive advantage will depend on the ability to rethink the management required to steer them.

*Scientific Director of the HR Innovation Observatory at the Politecnico di Milano

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