AI turns middle management into an hourglass, squeezing out the middle
What happened
This paper introduces a theory about how artificial intelligence changes how companies are organized. It suggests AI takes over many tasks traditionally done by middle managers, creating an "hourglass" shape where top and bottom layers remain, but the middle shrinks.
Why it matters
For decades, companies have relied on middle managers to coordinate work and make decisions. This paper suggests AI can now do much of that work, which means companies can operate with fewer people in those roles. This could make organizations flatter and more agile, but it also means a significant shift in the types of jobs available and how work gets done.
The signal
Watch for companies announcing significant reductions in middle management roles after implementing new AI tools, especially in large corporations.