Artificial intelligence adoption and the demand for managerial expertise
Firms adopting more AI show greater demand for managers, shifting skills from budgeting and planning toward sales, creativity and stakeholder management.
Summary
Using US job postings from 2010 to 2022, the authors find that firms adopting more AI post relatively more managerial roles, especially in manufacturing and in innovative firms. The content of those roles shifts away from routine administrative skills such as budgeting and planning towards growth-related skills such as sales, creativity and stakeholder management. The evidence points to managers being needed for scaling, coordination and organisational adaptation as AI takes over routine work, rather than AI substituting for management. The measure is demand in job postings, so it captures what firms look for rather than realised performance.
Editor's opinion
AI adoption does not hollow out management, it changes what managers are for. Firms that adopt more AI ask for more managers and for different skills: less budgeting and planning, more selling, creativity and stakeholder work. Leadership teams should redesign management roles around scaling, coordination and adaptation instead of assuming AI shrinks the management layer.
Key concepts
AI adoption · managerial expertise · job postings · skills shift · organizational adaptation