AI is already in use at 78% of companies, and that number is sure to rise. But are businesses ready to manage human–agent teams?
As the workplace evolves, the manager's role is due for a transformation — from coordinator to strategist, from boss to team architect. To stay ahead of the competition, companies need to cultivate leaders who can integrate digital labor while helping their employees develop.
In this article, we’ll paint a portrait of the 21st-century leader and describe the skills that will enable them to manage integrated human–AI teams.
Why it’s hard to find good managers
Companies are facing a leadership pipeline crisis, and traditional managerial roles are becoming less attractive. Here are three reasons why companies are struggling to prepare new leaders.
In companies that don’t use AI, leaders don’t have time for development
Managers spend up to 40% of their working time on routine tasks that can be automated with AI. These include reporting, initial resume analysis, and collecting and processing employee feedback. It’s not yet possible to offload these processes entirely to AI, but using it to expedite the first stage of tasks like these is a real way to free up time for bigger-picture issues.
People don’t want to become leaders
More and more workers, especially within Gen Z, are consciously refusing management roles. For them, “unbossing” helps ensure a work-life balance. They have a point, given that 40% of managers reported a deterioration in their mental health after moving into a leadership position.
According to Gallup, AI is only increasing managers’ workload (at least for now): managers use it twice as often as other employees, learning to use new tools while retaining all their supervisory responsibilities.
One in ten Zoomers say they want AI bosses
Many young people believe AI bosses would be fairer, kinder, and more neutral. And leaders themselves — human ones, anyway — aren’t very optimistic: 74% expect they could lose their jobs in the next two years if they don't deliver AI-driven business gains.
What should a leader be like in the age of AI?
Over 30% of company leaders believe that AI strategy will be a main requirement for hiring CEOs in the next three to four years, and 60% expect it to become mandatory within six. What else should 21st-century leaders pay attention to?
Focus on results, not processes
As AI automates routine tasks, managers can spend less time supervising direct reports. This frees up time for employee development, motivation, and strategic thinking.
Leaders should become guides rather than bosses. Meta is one company that’s already trying to implement this approach: Mark Zuckerberg says his core team includes about 30 managers whom he doesn’t control, but involves in everything the company does, aiming to inspire them to new achievements.
People-orientation
Even if AI takes over routine tasks from managers, it can’t influence employees’ emotional state. 67% of employees say their manager “understands best what motivates them” — so a personalized approach is crucial.
Managers must not merely lead but unite teams, strengthening contact among colleagues and developing a shared sense of mission. Communication within the team is the key to creativity, flexibility, and resilience in times of instability.
Human–AI balance
In the age of AI, one of the tasks of a manager is to optimize interaction between employees and digital assistants. Many workers fear AI will take their jobs, and there are already examples of this happening: Microsoft recently laid off 6,000 employees, including about 1,000 developers, some of whose functions are now performed by AI (which is writing 30% of the code). It’s expected that by 2030, AI will be able to write up to 95% of it.
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More than 80% of young workers already interact with AI in their daily work — so today’s managers need to optimize the interaction between people and machines.
That need will only become more acute. One global trend identified in Microsoft’s 2025 Work Trend Index Annual Report is the realignment of business processes to incorporate AI and human–agent teams in order to scale more quickly, work more flexibly, and create more value than traditional companies.
Trust-based management
Micromanaging leads to more than half of employees feeling stressed. They will welcome an environment where they’re trusted to work more autonomously.
Connected Leadership can help create such an environment. This is a leadership style based on emotional intelligence: self-awareness, empathy, transparency, and sincere interaction with the team. It helps build trust and enhances engagement and creativity.
Trust-building requires that managers explain to employees which tasks will be transferred to AI and what role AI will play in the company. According to Gallup, when managers have a clear strategy for interacting with AI, employees are 2.6 times more likely to feel comfortable using it.
Personal responsibility
It’s important for managers to monitor employees’ state of mind and workload and to help them focus on key tasks. This means designing efficient workflows and optimizing communication — no calls for the sake of calls or duplicate messaging.
Coaching is another crucial element of productivity: developing employees increases their productivity by 27%, and employees whom their managers motivate achieve their goals 1.5 times more often.
Meanwhile, companies that effectively manage workers’ productivity are twice as likely to achieve good financial results.
Dealing with uncertainty
In the end, AI can’t replace human managers. The ability to reason and make balanced decisions even in turbulent times is crucial for team success, and workers will always look to fellow humans for reassurance.
How companies can prepare for new management
1. Introduce new performance metrics
Why it matters:75% of organizations now say that they’re unable to adequately assess the real value of their employees' work. Managers spend only 15% of their time on planning, and 13% on employee development. Metrics such as the Human-Agent Ratio will help companies understand which tasks are best performed with AI and where human input is critical.
2. Maintain a healthy atmosphere
Why it matters: Organizational health is key to long-term effectiveness and sustainable growth. Companies in the top 25% in terms of health see three times the shareholder return of companies in the bottom quartile.
3. Become more people-centric
Why it matters: Employee well-being, development, and personal values are key priorities for modern businesses. Organizations need to become more sustainable and flexible to attract talent and leaders.
4. Train existing managers
Why it matters: 36% of managers feel insufficiently prepared for future challenges, but this can change — people can be taught how to manage effectively in the age of AI. But training by itself is not enough; leaders must be continuously supported in their growth.
Why it matters:73% of organizations recognize the importance of adapting managers’ roles, but only 7% believe they’re successfully moving in this direction. This needs to change. One good model is Michelin, which saved $500 million by changing the role of factory manager to mentor.
6. Embed AI into company work processes
Why it matters: Implementing technology strategically strengthens the organization. For example, you can integrate AI to get real-time feedback from employees, reduce bias, and increase their loyalty.
7. Make leadership roles attractive
Why it matters: Young professionals are looking for meaning, flexibility, and balance, not just status. If leadership is associated with burnout, isolation, and bureaucracy, they simply won't go for it.
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