Key Points
- Gartner forecasts that AI will reduce middle management roles by over 50% by 2026.
- AI can improve productivity but raises concerns about job security and morale.
- By 2029, 10% of boards will use AI for making executive decisions.
- 40% of large companies will use AI to gauge employee feelings by 2028.
- 70% of new employee contracts will include AI-related clauses by 2027.
- Emotional AI could help reduce burnout for healthcare workers.
- By 2028, 30% of S&P companies will adopt GenAI branding.
- CIOs will want “Guardian Agents” for AI oversight by 2028.
Looma News
Consulting firm Gartner has noted a big change in how organizations will work due to AI. By 2026, one in five companies is expected to flatten their structures, which could cut more than half of middle management roles. This aims to reduce costs and boost productivity through automation and performance tracking.
While there are clear benefits to using AI, there are also challenges. Employees might worry about job security, and some might resist these changes. Junior staff could miss out on growth opportunities because traditional mentoring could be disrupted.
Daryl Plummer, a top analyst at Gartner, said, “It’s clear that we can’t avoid the impact of AI.” He stressed that organizations need to adapt to AI’s potential before people fall behind.
Impact on Decision-Making
By 2029, 10% of boards worldwide are expected to use AI insights to question executive decisions. Initially, these insights might clash with existing opinions, but their usefulness could lead to wider acceptance among executives looking for better support in their decision-making.
Sentiment Analysis
By 2028, 40% of large companies will use AI to understand how employees feel and behave. This will help align workplace feelings with company goals. However, Plummer warned that employees might feel a loss of control and privacy, which could hurt trust and morale.
Employee Contracts and Healthcare
By 2027, 70% of new employee contracts are likely to have clauses about how AI will use employee data. This is especially important in healthcare, where emotional AI could help reduce burnout by streamlining patient data collection. Without these measures, healthcare providers could face serious financial issues.
GenAI Branding and Oversight
By 2028, 30% of S&P companies are expected to start using GenAI in their branding. Chief Marketing Officers see this as a way to speed up product launches and improve customer experiences. At the same time, 40% of Chief Information Officers will want “Guardian Agents” to supervise AI activities, ensuring security and compliance.
As organizations adapt to AI technologies, the rise of multi-agent product launches is likely to create new complexities and security issues.
