Managers managing managers is out. Managers managing AI agents is in.

In a pivotal shift for corporate structures, the traditional model of 'managers managing managers' is being replaced by a new paradigm: 'managers overseeing AI agents.' This transformation was highlighted by Meta CEO Mark Zuckerberg during a 2023 Q&A session, where he expressed concerns about an overabundance of management layers impeding productivity. As companies like Meta and Citi streamline their operations by reducing middle management, the advent of AI technology is reshaping how organizations function. Jeanne DeWitt Grosser, COO of Vercel, emphasized this change, suggesting that companies will need a new kind of leadership—'agent managers.' These AI agents, which are designed to operate autonomously, can analyze problems, create strategies, and execute tasks without requiring user intervention. Vercel, valued at $9.3 billion and established in 2015, is at the forefront of this innovation. The company has trained an AI agent based on its top sales representative, allowing them to reduce their sales team from ten members to just one, showcasing the efficiency of AI in the workplace. Managing AI agents demands a distinct set of skills compared to traditional personnel management. Grosser noted that future managers will need to articulate goals clearly and understand what excellence looks like in a tech-driven environment. While this role might lower the entry barriers for management positions, it necessitates a different technical proficiency. Grosser hinted at the possibility of Vercel creating such roles in the future but did not provide specifics. Meanwhile, industry leaders like Jason Lemkin have already pointed to the emergence of high-paying positions that focus on managing multiple AI sales development representatives, which require a high degree of technical expertise. Saurabh Sarbaliya, CTO at PwC, echoed the sentiment that companies will focus on upskilling their current employees to fill these new roles. He stressed the importance of training existing staff to effectively manage AI agents, which involves providing context, monitoring agent performance, and developing structured workflows that integrate human oversight when necessary. This evolving landscape is indicative of a broader trend where human and AI collaboration will redefine management in the coming years.