According to Fortune, companies including Amazon, Moderna, and McKinsey are already using AI to eliminate management layers and flatten their organizations. At Fortune’s Brainstorm AI conference, Amazon’s Danielle Perszyk argued that current productivity apps are undermining real productivity, tethering everyone to their screens. AI agents acting as “universal teammates” are being deployed to handle routine administrative tasks, freeing managers to focus on strategy and coaching. Zillow’s Toby Roberts suggested this could let managers oversee larger teams. However, Workday’s Aashna Kircher warned that companies must reset expectations and build new incentive structures, as management has historically been measured by team output, not human leadership qualities. Experts also caution that overusing AI for empathetic tasks like feedback can damage trust and interpersonal relationships.
The Flat Org Future Is Here
Here’s the thing: this isn’t just about saving a few hours on reports. This is a fundamental rewrite of the corporate playbook. For decades, we built hierarchies where a manager’s value was often tied to their role as an information router and a productivity monitor. But if an AI agent can summarize performance data, schedule meetings, and generate first-draft status updates, what’s left? The answer, apparently, is the stuff we’ve always said was important but rarely properly measured or rewarded: coaching, enabling, and directing team energy. It’s forcing a brutal honesty. Companies that just swap a human task-doer for an AI task-doer without rethinking the entire role are missing the point—and probably setting up their “accidental managers” for an even bigger fall.
The Empathy Gap Is a Trap
This is where it gets really tricky. The article highlights a massive risk: using AI for the human stuff. When a direct report gets feedback or recognition that feels AI-generated, their perception of their manager tanks. And honestly, can you blame them? We all crave authentic connection, especially at work. Canva’s Stefano Corazza nailed it: “The more AI there is, the more authenticity is valued.” So the cruel irony is that by automating the busywork to free up time for human connection, we might inadvertently encourage managers to outsource the empathy too. That’s a shortcut to a toxic, disconnected culture. It puts a glaring spotlight on the chronic problem of promoting great individual contributors into leadership roles without the people skills, a trend research shows drives people to quit.
Winners, Losers, and New Rules
So who wins in this shift? Managers who are genuinely great coaches and mentors will become incredibly valuable—and probably harder to retain. Companies that figure out how to measure and reward those “soft” skills will gain a real advantage. The losers? Middle managers whose jobs were 80% process administration. And the companies that think an AI license is a substitute for leadership development. The new competitive landscape won’t just be about who has the best AI, but about who can best integrate it to amplify human potential, not replace human judgment. It means HR and tech departments need to work together like never before to build those new “accountability and incentive structures” Kircher mentioned. Basically, we’re about to find out which companies really believe their “people are our greatest asset” slogans.
