Middle Managers Drive AI Forward
The Rise of AI in the Workplace
As if the Great Flattening wasn't enough, managers are now being tasked with driving the AI revolution. Recent reports highlight how companies are pushing their employees to use AI tools effectively. This involves flagging low usage, creating dashboards, and offering practical ideas for integrating the technology into daily work.
With middle management ranks shrinking, their responsibilities are increasing. Their latest challenge: getting employees on board with AI. Companies are under pressure to prove that AI is improving efficiency. During recent high-profile layoffs, CEOs have claimed that AI enabled these cuts. For example, Coinbase recently announced it was cutting 14% of its staff, citing both AI and a desire to reduce management layers.
Business Insider has reported on how companies like Disney and JPMorgan are tracking and incentivizing AI use among employees. These examples show how managers are working to drive day-to-day adoption of AI. This shift indicates that the pressure to show results from significant AI investments is moving from C-suite memos to individual manager check-ins and performance reviews.
The Role of Managers in AI Adoption
For managers already dealing with do-more-with-less mandates, this is an additional burden. A software engineer at JPMorgan mentioned that his manager has been emphasizing the need to show better outcomes through AI use. In daily standups and weekly meetings, the manager reminds the team that they need to start showing improved results.
"It's become more urgent," the engineer said. He added that his manager has made comments about not wanting to be the "last-place team" in AI use. Companies have invested heavily in AI tools, encouraging employees to experiment and sometimes mandating their use. However, many firms face the issue that access to AI doesn't guarantee its use or productivity gains.
McKinsey reported in April that while companies are investing more in AI, "sustained impact on performance is elusive." This is where managers play a crucial role. Julie Bedard, a managing director at Boston Consulting Group, emphasized the importance of managers in this context.
Tracking AI Usage
One way bosses are nudging workers is by making it clear they're tracking AI use. At Disney, some tech team members can view an "AI Adoption Dashboard" that shows token use for AI tools like Cursor and Claude. The company is also examining who is fully embracing AI. A manager wrote to a software engineer, asking why he hadn't used the AI tool more.
The manager asked for details on which AI tools the person had access to, how they were using them, what made it hard to get started, and what would make it easier to use them more regularly. "Your honest feedback will help me understand where to focus — whether that's better training, clearer guidance, or just removing friction," the manager wrote.
Another engineer described a bottom-up approach where engineers generate ideas. However, the directive from above is clear: "No handwritten code," this person told Business Insider. It appears to be working. "I haven't written any code in months," the engineer said.
The Pressure on Managers
The AI push comes as companies rethink the role of managers. The Great Flattening has led to the elimination of management layers focused primarily on oversight. While leaders have floated a future where managers manage AI, the immediate future involves managers managing people who manage AI. Early on, many organizations relied on simplistic tracking measures, such as whether employees logged in to a tool. Yet those metrics didn't necessarily translate into meaningful productivity gains, according to BCG's Bedard.
Managers are facing questions about how to roll out tools to get work done better, faster, and more effectively. At JPMorgan, the engineer said this push has changed how he works. He now delegates lower-level tasks to AI tools.
