AI and flatter firms force rewrite of leadership pipeline

Companies are rethinking how to identify future leaders as artificial intelligence takes over many routine tasks and organisational structures flatten. Deloitte research cited by ETHRWorld found 76% of Gen Z and 67% of millennials aspire to senior leadership, but only 6% list career advancement as a primary goal. With AI compressing hours of analysis into minutes, output alone is no longer seen as a reliable signal of potential, the report says.

Dr Aloknath De of TechCrafter told ETHRWorld he now looks for candidates who solve ambiguous problems, influence without authority, and learn faster than the environment changes. Across seven major IT services companies, over 7,700 professionals with more than 15 years of experience exited in the past year, according to staffing firm Xpheno. Tata Consultancy Services announced a reduction of about 12,000 employees in FY26, concentrated at mid and senior levels.

McKinsey research cited by ETHRWorld notes that managers act as translators and coaches, but over half their time is spent on administrative tasks. A Gartner report says CEOs are using AI to increase managerial spans of control and delayering. Sonia Kutty of Quest Global told the outlet her firm has shifted from role succession to capability succession, asking who is developing the skills the organisation will need rather than who is next in line.