Shayne Fitz-Coy is the cofounder of Sabot Family Companies, a long-term investment company founded in 2016 in Stanford, California.
The artificial intelligence (AI) revolution has arrived, but it’s no longer just entry-level workers who should be concerned. I believe middle management, particularly well-compensated vice presidents, are next in line for disruption.
Why Middle Management Could Be A Target
The second wave of autonomous agents will likely target the executive suite. Here’s why:
Executive complacency masks a dangerous reality.
Entry-level workers, engineering professionals and software development professionals recognize the threat to job security. According to SurveyMonkey research from 2023, roughly one-third of employees aged 18-24 report being worried about generative AI taking their jobs. This cohort typically represents individuals in lower-ranking positions within a company. In contrast, the survey found only 16% of workers earning over $150,000 (typically those in higher-ranking positions) share this concern. This executive hubris appears misplaced.
Middle management occupies the most vulnerable position.
Corporate hierarchy flows from the board, which sets objectives, to the CEO, who executes them. The CEO’s direct reports divide these responsibilities across the organization. VPs sit in the next layer that represents the most vulnerable position in my eyes because this middle tier often doesn’t perform direct work but instead manages the work of others. As the base layer of employees becomes algorithmic, these middle management positions become prime candidates for elimination.
As an entrepreneur with 15-plus years in the field, I’ve witnessed this transformation firsthand. Three years ago, we manually reviewed data for hours. Now, small teams with AI tools analyze information faster than larger teams, allowing analysts to assume senior roles and reducing the need for middle managers.
The Industrial Revolution provided a blueprint for what’s coming.
During the Industrial Revolution, machines replaced human laborers and supervisors needed new skills. The AI revolution will likely follow suit. With AI systems, you may need only one manager per 50 workers instead of one per dozen.
Industry vulnerability varies, but no sector is immune.
The second-order effects of AI agents likely won’t impact all industries at the same time. Many sectors lack the streamlined workflows needed to transfer responsibilities to AI. However, I believe eventual transformation is inevitable.
According to the IMF’s 2024 report, 60% of jobs in advanced economies could be impacted by AI, compared to 26% in low-income countries. The financial services industry has been particularly aggressive in adopting AI solutions. One of our financial portfolio companies deployed an AI system transforming team compensation and reviews. Some thrived with the changes; others struggled, but everyone recognized this as the future of work.
How VPs Can Better Future-Proof Their Careers
To buttress your career against emerging technologies, I recommend senior and middle managers pivot from oversight to value creation. Here’s how:
Develop expertise in AI implementation and governance.
Become the bridge between technical teams and executive leadership by building knowledge about how AI can be effectively deployed. The ability to translate complex technical concepts for non-technical stakeholders will become increasingly valuable.
When our firm implemented our first AI system, the VP who led the initiative now oversees our entire technology strategy. Other leaders haven’t maintained the same forward career arc.
Focus on uniquely human contributions.
Cultivate skills AI can’t replicate, such as strategic thinking, personal relationships, ethical judgment, creative problem-solving and stakeholder management. Strong communication skills will be crucial when leading teams that combine human workers with AI systems.
Shift from process management to innovation leadership.
Lead initiatives that create new value streams and business models leveraging AI capabilities. Project management skills are essential to coordinate ecosystems of human and AI contributors.
A vendor of ours pivoted from a traditional human-powered offering to leading an AI-augmented employee consultancy. Once a mid-level operations leader, she now manages her former peers with a likely compensation increase.
Become a strategic talent developer.
As AI tackles routine tasks, your ability to identify and develop human talent becomes more valuable. Think about how you can build teams with complementary skills that work effectively alongside AI systems.
Master ethical AI deployment.
Organizations need leaders who understand both the technical capabilities of AI agents and the ethical implications. Learn everything you can about responsible AI deployment to position yourself as indispensable.
AI doesn’t spell the end of senior management, but it’s important to know the warning signs and evolve your role to become the essential human in your organization’s AI transformation. I believe those who view AI as a powerful tool rather than a threat will find themselves leading the organizations that thrive amid this technological revolution.
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