Reevaluating the Middle Management Model in AI-First Workplaces

AI is transforming jobs of all stripes, but the threat to middle management roles is most urgent. According to Gartner’s Top Strategic Predictions for 2025 and Beyond, 20% of organizations plan to use AI to eliminate more than half of their current middle managerial roles in AI by 2026. This development raises critical questions regarding the future of middle management.

Middle management has historically played a central role in managing the flow of information between leadership and the bottom line. However, today, artificial intelligence and other technologies can effectively perform many of the administrative responsibilities (reporting, monitoring, and scheduling) of middle managers. As a result, enterprises are reevaluating the middle management model, with many adopting non-hierarchical, “flatter” structures to increase efficiency, improve organizational agility, and reduce costs.

Still, it is essential to understand that eliminating middle managerial roles in AI isn't the solution. Middle managers possess critical institutional knowledge and are often responsible for making strategic decisions and rebuilding work culture in changing environments. They also play an integral role in coaching and developing their people. Given the lasting value of these human-centric skills, organizations should leverage AI to reinvent the middle manager role rather than eliminate it entirely.

This article examines the future of middle management, emphasizing the managerial capabilities that will remain critical in the new, AI-first world of work. It also outlines the proactive steps leaders and HR teams must take to rescope roles, reskill managers, and rebuild psychological safety in the workplace.

The Future of Middle Management

Artificial intelligence can indeed automate a significant portion of middle management roles, presenting a valuable opportunity for organizations to increase work efficiency and agility. However, organizations still need managers to capitalize on AI's promise.

Middle managers are central to driving the adoption of new technologies, such as AI. They can help identify skill gaps and build critical capabilities within teams, allocate employees to the right roles, and support them in performing at their best. They also act as architects of environments, inspiring creativity and innovation.

In the current climate, especially where organizations face relentless disruption and skills obsolescence, the human-centric skills of managers remain indispensable. Crucially, capabilities such as social and emotional intelligence to manage interpersonal conflicts, coach and develop employees, make informed decisions, and maintain morale are needed more than ever. Skills like empathy, contextual understanding, critical thinking, and problem-solving (which are challenging for AI systems to replicate) are also critical.

Understandably, middle managerial roles in AI will evolve to blend the technical potential of AI with the uniquely human skills that managers bring. AI will perform routine tasks, such as reporting and monitoring performance, freeing managers to focus on high-value, strategic work and lead teams through disruption. Middle managers are likely to partner with HR leaders to orchestrate AI-human collaborations, develop talent, and transform work culture.

Continuous reskilling and development will be essential to ensure middle managers succeed in an AI-first world. Without this effort, organizations risk manager disengagement, which can have a ripple effect throughout the organization. Teams may disengage, overall organizational performance can falter, and technological adoption may lose momentum.

Organizations should take proactive steps to empower their middle managers with development and support, enabling them to succeed.

Reevaluating Middle Managerial Roles in AI

Considering the conscious shift to flatter structures across organizations, the future of middle management might appear bleak. However, the role of middle managers isn't entirely replaceable, as human skills remain enduringly relevant in an AI-driven world. Their contributions as change agents (AI agents), coaches, and architects of culture are critical as existing roles evolve and new managerial roles in AI emerge.

However, skill gaps and large-scale displacements are anticipated due to AI, necessitating the continuous skilling and development of middle managers.

Notably, many organizations anticipating skills disruption are actively investing in reskilling and upskilling initiatives. According to the World Economic Forum's 2025 Future of Jobs Survey, nearly 50% of the workforce across sectors have completed training. This marks a positive global trend compared to 2023, when only 41% of the workforce had received training. More organizations should follow suit and provide middle managers with the necessary support and resources to lead change effectively. The following proactive steps can help organizations empower their middle managers to succeed:

• Manager rotations: HR leaders should create brief, intentional leadership rotations that expose managers to high-performing leaders (e.g., executives and change leaders). It can help them develop critical skills, such as using AI strategically, remaining resilient to change, or ensuring broader buy-in for AI integration. These learnings can make managers more aware and confident as they face future crises with AI in the workplace. Notably, such internal rotations offer cyclical benefits. As others share their understanding of AI and leadership insights, managers can offer feedback that prompts self-reflection among leaders. As such, even brief rotations can lead to innovation, performance, and developmental gains that continually benefit organizations in the long term.

• Manager evaluation: Managerial success should be evaluated not just by team results, but also by how well managers allocate employees across roles, build trust, and adapt to changing work environments. Hiring and performance evaluations can reflect this shift by assessing managers for their ability to use AI strategically, collaborate cross-functionally, and demonstrate emotional intelligence and coaching skills.

• Leadership coaching: Middle managers should be encouraged to seek support and informal training from change leaders, those with influence and knowledge, to gain a deeper understanding of the impact of AI in the workplace. They should relay these signals to teams through check-ins and one-on-one discussions. 

• Skilling initiatives: As employees work more closely with AI, managers will need to take on new responsibilities. They will have to redesign jobs, help people collaborate effectively with intelligent systems, and allocate resources to where they can create the most value. Organizations need to proactively invest in skilling middle managers at scale, training them to become change agents, better coaches, and problem solvers. They need to equip managers with the tools and education to work effectively with AI. Upskilling and reskilling initiatives should prioritize AI literacy alongside core competencies such as empathy, judgment, and innovative thinking. HR leaders need to create opportunities for middle managers to practice and apply these core skills, such as having difficult conversations and making complex judgment calls.

Conclusion

With AI taking over much of the monitoring, coordinating, and reporting work that once justified multiple managerial layers, the future of middle management is being called into question. However, AI's abilities indicate its technical potential in tasks. Core human-centric competencies, such as critical thinking and empathy, as well as leadership skills, remain crucial. Organizations should leverage this knowledge to reinvent the role of managers.

They need to proactively invest in building critical capabilities among middle managers, as they are a vital and valuable resource for an organization. Prioritizing future-ready skills among managers and ensuring organization-wide AI literacy is key to sustaining desirable business outcomes. Evolving existing systems and processes is also crucial for organizations to respond effectively to disruptions.