AI's Impact on Organizational Structure

🚀 AI is transforming how we work—but so much of the focus is on the individual—individual AI use cases, individual productivity gains, and the individual skills required to capitalize on AI. Too often, we miss the bigger picture. What happens to our teams and org structures when AI enters the workplace? I’m excited to share new research (link in first comment below 👇) that my colleagues and I recently published in CSCW. Our 10-month ethnographic study of a fast-growing digital retailer unpacked how AI challenges traditional org charts and structures. Here's the problem: 🗂️ Traditional org charts divide work into silos—sales, marketing, product lines, etc. This structure is decades old, designed to keep complexity manageable by clearly assigning who does what. 🤖 But AI doesn’t like silos. 🔎 In our study, the algorithms couldn’t fully optimize because the org chart kept decision-making locked in silos. Once those constraints were lifted, AI delivered far better results—spotting trends and opportunities no single team could see on its own. Our research suggests that to get the most out of AI, organizations need to rethink three key areas: 1️⃣ Break Down Silos Don’t box in your AI—or your teams. AI is most powerful when applied at the cross-functional level, connecting insights across departments and uncovering trends no single team can see on its own. 2️⃣ Rethink Your Data Systems Rigid, fragmented data systems are AI’s kryptonite. Shifting to flexible, connected data systems ensures AI can analyze patterns across the entire organization. If your data’s stuck in fragmented systems, your AI will be stuck too. 3️⃣ Rethink Your Org Chart—Or At Least How It Might Be Constraining Your AI Build teams and processes that aren’t limited by static org charts. Rethink how roles and responsibilities are assigned. When you’re building your next team, don’t just grab the org chart. Look at what needs to get done and use AI to help you figure out the right roles. Have you thought about how AI might reshape your org chart? We know that hierarchy matters a lot—history shows us that too many attempts to dismantle it over the years have flopped. But with AI in the picture, I expect that rethinking parts of our org charts won’t be optional—it’ll be inevitable. So honored to collaborate with an incredible team of superstars on this piece: Amanda Pratt, Melissa Valentine, and Michael Bernstein.

I recently wrote that AI is not just a technology shift – it's a work shift. So, how does that play out? First, AI changes how we do tasks. Next, it changes how we do our jobs. Then, it changes entire functions. The result? A brand new way of getting work done and thinking about growth. Step 1: AI transforms tasks: AI works with you. It helps you do what you’ve always done — just faster. A marketer drafts blog posts in minutes. A rep writes emails with higher personalization, less effort. A support leader summarizes tickets in seconds. This is where most teams are today: AI as a productivity booster. Step 2: AI transforms jobs. AI works for you. It starts delivering outcomes. A content agent spins one blog into a full campaign. A prospecting agent books qualified meetings without human touch. A customer agent handles most Tier 1 support tickets. The job itself starts to evolve. You spend less time doing — and more time creating, optimizing, and scaling. Step 3: AI transforms functions. As agents take on entire workflows, the structure of departments begins to shift: Support shifts from to proactive experience design. Marketing shifts to creative strategy. Sales shifts to high-impact closing. Role ratios change. Skillsets shift. We are not quite here but we can see the path. The result for scaling businesses? A whole new way of approaching work, structuring teams, and thinking about growth.

If you’re in leadership, you need to understand *how* genAI will transform your organization, and what that means for restructuring teams. Here's what we're learning: BREAKTHROUGH IN AI IDEATION OpenAI is getting ready to launch new AI models (o3 and o4-mini) that can connect concepts across different disciplines ranging from nuclear fusion to pathogen detection. (Reporting from The Information's Stephanie Palazzolo and Amir Efrati). Molecular biologist Sarah Owens used the system to design a study applying ecological techniques to pathogen detection and said doing this without AI "would have taken days." THE NEW TEAMMATE EMERGES Remember the HBS study with 776 Procter & Gamble professionals? It showed that genAI functioned as an actual teammate. Individuals using AI performed at levels comparable to traditional human teams, achieving a 37% performance improvement over solo workers without AI. Teams using AI were three times more likely to produce top-quality solutions while completing tasks 12.7% faster and producing more detailed outputs. BREAKING DOWN SILOS That study showed that AI also dissolves professional boundaries. Without AI, R&D specialists created technical solutions while Commercial specialists developed market-focused ideas. With AI, both types of specialists produced balanced solutions integrating technical and commercial perspectives. A NEW KIND OF TEAM AI users reported higher levels of excitement and enthusiasm while experiencing less anxiety and frustration. Individuals working alone with AI reported emotional experiences comparable to those in human teams. That's wild. RESTRUCTURING FOR ADVANTAGE The HBS study showed that AI reduces dominance effects in team collaboration. When genAI translates between roles, it accelerates iteration at a pace that there’s no way traditional teams could match. ++++++++++++++++++++ THREE THINGS YOU SHOULD BE DOING NOW: 1. Upskill your entire workforce: Develop a fundamental behavioral shift in how teams interact with AI across every task. This only works if everyone is doing it. (We work with enterprise to upskill at scale - more below.) 2. Experiment with new team structures: Test different AI-team combinations. Try individuals with AI for routine tasks and small teams with AI for complex challenges. Find what works best for your specific needs. 3. Redefine success metrics: Set new standards for what good work looks like with AI. Track not just productivity but also idea quality, knowledge sharing across departments, and team satisfaction—all areas where AI shows major benefits. ++++++++++++++++++++ UPSKILL YOUR ORGANIZATION: When your company is ready, we are ready to upskill your workforce at scale. Our Generative AI for Professionals course is tailored to enterprise and highly effective in driving AI adoption through a unique, proven behavioral transformation. It's pretty awesome. Check out our website or shoot me a DM.

AI is inviting us to release old hierarchies and co-create organizations that are more agile, connected, and deeply human. Harvard Business Review just shared a stat, developers using GenAI tools like GitHub Copilot shifted 5% more time to core work and spent 10% less time on project management activities.    In other words, the role of the middle manager is being redefined.  I see this happening across organizations we work with: Associates are stepping up and showing up to strategic conversations more prepared than ever because AI gives them access to knowledge and insights instantly.    Middle managers are spending less time coordinating and more time contributing to hands-on work and driving strategy. Leaders are realizing they don’t need as many layers in the org chart to keep things moving. This isn’t about eliminating middle managers; it’s about freeing them up to focus on higher-value work: mentoring, coaching, building trust, and driving innovation.    GenAI can automate tasks, but it can’t replace human connection. It can’t read the room, navigate a tense client conversation, or inspire a team to take bold action. That’s still on you.    Are you using AI to replace your managers… or to elevate them? Because the companies that get this right will move faster, innovate more, and keep their people engaged in a way that others can’t replicate.    Where do you see opportunity to let go of rigid structures and step into a more empowered, human way of leading?    #Leadership #GenAI #FutureOfWork #BusinessAdvice #CareerAdvice