AI will erase middle managers: New report

A new report suggests that artificial intelligence may fundamentally alter the corporate career ladder, potentially erasing the role of middle managers. Kevin Sneader, a senior executive at Goldman Sachs, believes AI could bring management responsibilities closer to the frontline as young employees manage AI agents from the start of their careers. This shift could disrupt the traditional progression from junior employees to middle managers and eventually senior leadership.

Sneader predicts that young workers entering the workforce will have to manage "virtual armies" of AI agents, a task that will require them to direct multiple AI systems and make decisions on how to utilize them. This could give junior employees responsibilities that traditionally came with greater seniority, turning the corporate career ladder on its head.

The biggest disruption is likely to be experienced by middle managers, who coordinate teams, assign work, review output, and help senior executives translate strategy into action. AI could take over parts of their job, shifting the management task from middle managers to frontline employees. Existing managers may also face challenges as companies across sectors redeploy their roles.

This change could also disrupt how employees gain experience. Traditionally, junior workers learned by handling smaller assignments before progressing to more complex responsibilities. However, if AI handles much of the routine work, companies may need fewer employees performing entry-level tasks. Instead, young employees could potentially supervise AI-generated analysis, check its output, and make decisions earlier in their career.

This could lead to a workplace where experience is measured differently, as the first few years of a finance career may look very different from previous generations.