I want to share some thoughts about the impact of AI on org structure.
This is based on early conversations with some of the top CHROs in Fortune 500 companies as well as other C-Suite leaders and startups.
First: why do I think most enterprise org charts look the way they do? Maybe cleaner ownership lines (fiefdoms are fun), maybe easier to serve clients better (ex: the API team at OpenAI shouldn't be separate from the ChatGPT team because the same clients are buying both and don't want to deal with two separate teams), maybe just redundancies and catching errors.
Layers of people in orgs end up acting like an org sieve or one of those coin sorters. Issues come up, and because multiple people or departments have to review it, many of them are caught ahead of time.
The structure helps to absorb human mistakes.
It's a liability support system.
AI-First companies (which tend to be companies trying to reduce friction and create flatter orgs) are pulling out those layers on purpose.
And as a result, ownership (one person running hundreds or thousands of agents) is getting more concentrated.
If ownership gets MORE concentrated because of layer removal, then that actually RAISES the trust you need in your people, your team, your company.
When one marketer or finance leader owns an entire outcome, you as the leader have to trust their taste, their risk tolerance, their judgement, their level of "done", etc. a whole lot more because there is no one downstream to fix it.
And so what happens as a result? The hiring math changes. You're less likely to bring in outsiders into your org (so internal referrals and employees with strong networks become even more important). The CEO is more likely to get back in the weeds and have more conversations with owners. You're more likely to have layers of AI as filters and judges, verifying whether work has been completed to a certain quality level. And I'd argue B players have a harder time hiding and are less likely to be kept.
AI-first orgs are higher stakes per seat, and I think it has actual implications for hiring, growing, staffing, collaborating, referring, firing, and scaling.
Change management in enterprises takes years, so we'll see this play out slowly over the next 18 months.