Managers are unprepared to lead a human-agent hybrid workforce

Andrew Reece, Chief AI Scientist, BetterUp

The introduction of AI agents into the corporate workforce is not like other technology disruptions. Unlike previous automation, agents are empowered to act autonomously on a user’s behalf, which means work decisions will no longer be entirely made by humans. This represents an enormous leadership challenge. How do managers apply the standard skills of management when their team is no longer 100% human?

Enterprise AI adoption has already reached saturation: 88% of organizations now use AI regularly in at least one business function, up from 55% in 2023. Most of this growth reflects the increasing number of employees emerging as large language model power users. But a more consequential shift is also taking place — one that poses a real challenge to the traditional role of a manager.

The deeper change is the emergence of true human–agent collaboration. Sixty-two percent of organizations are now experimenting with AI agents, with 23% already scaling agentic systems in at least one function. When an agent drafts a proposal, negotiates terms or triages customer requests without waiting for human approval, the nature of work itself changes. The employee’s role shifts from executor to orchestrator, not all that unlike a management role — just with AI “reports” instead of human ones.

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