AI is already taking over managers’ busy work—and it’s forcing companies to reset expectations

Leading firms including Amazon, Moderna and McKinsey are already flattening org charts and deploying AI agents to automate routine managerial and administrative work, a shift that executives at Fortune’s Brainstorm AI conference said can free managers to focus on strategy and oversee larger spans of control. Panelists characterized AI agents as “universal teammates” that could raise productivity but warned organizations will need to reset performance metrics, accountability and incentive structures to reflect new people-leader responsibilities. They also cautioned that over‑reliance on AI for recognition or feedback can erode interpersonal trust and employee perceptions, so authenticity and human coaching remain critical risks for engagement and culture.

Analysis

Leading technology and services firms including Amazon, Moderna and McKinsey are already flattening org charts and deploying AI agents to automate routine managerial and administrative work; Amazon’s Danielle Perszyk characterized managers as “tethered to your computer screen,” and panelists described AI agents as “universal teammates” that can free managers to focus on strategy. Workday’s Aashna Kircher framed the evolving manager role as coach and team director, and Zillow’s Toby Roberts suggested managers could oversee larger spans of control as day-to-day minutiae are automated.

Panelists warned that organizations must reset accountability, performance metrics and incentive structures to align with AI-enabled workflows, a material governance and implementation task that affects operating leverage and talent allocation. The structured signals show a mixed sentiment (0.12) and a modest market-impact score (0.28), implying incremental adoption with cautious investor reaction rather than immediate disruption to fundamentals.

Behavioral and cultural risks are salient: BetterUp’s Kate Niederhoffer warned that overusing AI for recognition or feedback lowers direct reports’ perceptions of managers, and Canva’s Stefano Corazza emphasized authenticity over “synthetic empathy.” Investors should therefore weigh productivity gains against potential erosion of engagement and monitor HR- and culture-related KPIs alongside automation rollouts.

Key Decisions for Investors

• Consider increasing exposure to enterprise AI and workflow automation vendors that provide managerial productivity tools — prioritize companies with public roadmaps and measurable ROI such as Workday and platform owners like Amazon
• Monitor HR and culture indicators (employee engagement scores, retention, span-of-control disclosures, and management incentive changes) as leading signals of successful AI-driven reorganization in the near term
• Avoid paying premium valuations for firms where adoption is already priced in given mixed sentiment (0.12) and modest market-impact (0.28); use staged position sizing or hedges until empirical productivity and engagement improvements are reported