At the start of 2025, a narrative began to take hold that generative AI would be coming after people’s jobs, especially those of us working in the knowledge economy. Fast forward twelve months, and a clearer view is emerging of what is happening as AI enters the workplace in earnest – AI isn’t killing managers’ jobs, but it is actively transforming them. Indeed, the managers who thrive in today’s workplace do not cling to old hierarchies and ways of working; they coach, question, and guide teams, both human and now agent, through a fast-evolving, AI-powered workplace.
AI is definitely taking on a growing share of the so-called “grunt work”, from scheduling to analysis, freeing managers to focus on the human aspects of leadership like motivation, trust and purpose. But AI also creates new challenges. Managers must now judge not only what an algorithm can do, but what it should do. Ethical decision-making, once confined to boardrooms, now happens every day across teams. CMI’s research shows four in ten managers already see AI improving their organisation’s operations, and more than three-quarters feel excited about new AI technologies. Yet just as many warn that, without strong ethical frameworks, AI could deepen bias or erode trust. Managers now serve as the crucial “human in the loop,” bridging the gap between technology’s potential and its responsible use.
Chartered Management Institute (CMI) data paints a vivid picture of this transformation. Seven in ten managers say they have turned to generative AI instead of asking their boss for help. Not just because AI responds quickly, but because it feels safer. For many, AI offers a perception of privacy and protection from judgment. As leaders, that should make us pause and reflect. When employees prefer a chatbot to their line manager, we don’t have a tech problem; we have a trust problem. AI is exposing long-standing cultural weaknesses and revealing how often employees rely on technology to fill gaps in management practice. Good management has never been about oversight alone; it requires psychological safety, empathy, and an environment where curiosity earns reward, not criticism.
AI is also introducing new ethical and sustainability dilemmas that require skilled leadership. CMI’s research shows that almost half of UK managers (45%) say they worry about AI’s environmental footprint, from the energy demands of data centres to the carbon cost of training large language models. Younger managers express this concern even more, signalling a generational shift in expectations of responsible leadership. As organisations adopt automation to boost productivity, managers must weigh the hidden costs: the power consumed, the data processed and the sustainability implications built into every platform and process. Managers need to ensure their teams understand these costs and take a considered approach to their AI use.
In 2025, one lesson stands out: technology performs only as well as the management that governs it. AI-driven productivity gains will only endure when leaders build trust alongside technological advancement. Managers must now protect employee privacy, prevent algorithmic bias and ensure transparency in how AI shapes the workplace. Ethical leadership has become a core management skill.
The most successful managers in 2026 won’t simply master these new and exciting tools; they will lead through uncertainty, communicate openly about change and keep people firmly at the centre of innovation.
AI is demanding a new kind of manager, one who blends technical curiosity with emotional intelligence. The future does not belong to machines; it belongs to the managers who know how to lead them and the people who work alongside them. Senior leaders need to recognise the imperative to train their managers at every level to ensure their organisation gets this right.
AI is not killing jobs; it is killing outdated management models.
