People and Situations: Why Middle Managers Still Matter in the Age of AI
By Danielle Tenconi & Lt. Col. Todd Turner
As artificial intelligence (AI) continues to reshape how organizations operate, a pressing question arises: Do we still need middle managers? In an era where automation is optimizing workflows, data is informing real-time decisions, and leadership is increasingly driven by analytics, many assume the role of middle management – the “critical middle” – is in decline.
But this assumption misses the bigger picture.
Middle managers remain indispensable. Why? Because no matter how powerful AI becomes, organizations are still driven by two fundamental external factors: people and situations. These variables introduce unpredictability, emotion, complexity, and context – elements that AI struggles to fully grasp or manage. And managing these human and situational dynamics is precisely where middle managers thrive.
What Middle Managers Really Do
Middle managers are the glue that holds organizations together. They translate high-level strategy into actionable steps, manage cross-functional execution, and, most importantly, lead people through ever-changing situations. Their work sits at the intersection of human behavior and organizational complexity, both of which are influenced by people’s attitudes, skills, and resistance to change, and the situational realities of fluid market conditions, crises & opportunities, and company shifts.
Middle managers lead people through situations, to include:
Aligning daily work with strategic goals.
Coaching and developing team members.
Navigating interpersonal dynamics and conflict.
Managing through uncertainty and change.
Communicating effectively up, down, and across.
These tasks demand emotional intelligence, judgment, and real-world adaptability – qualities that no AI can replicate because they depend on reading and responding to people and situations in real time.
People: The Human Side of Leadership
In a data-driven world, it’s easy to lose sight of the emotional and relational aspects of work. But employees don’t follow dashboards – they follow people. They crave purpose, connection, recognition, and trust. This is where middle managers play an irreplaceable role as culture carriers and engagement drivers.
According to Gallup, managers account for up to 70% of the variance in employee engagement. That’s because they are the closest point of contact most employees have with company leadership. Their daily interactions shape whether employees feel valued, supported, and empowered.
As AI takes on more technical tasks, the emotional labor of leadership – coaching, mentoring, listening – becomes more important, not less. Middle managers are uniquely positioned to foster belonging, drive motivation, and help individuals adapt to new ways of working brought on by technological change.
Situation: The Constant of Change
No two business days are exactly alike. The workplace is in a constant state of flux – economic downturns, technological disruptions, evolving customer expectations, and organizational change all create shifting situations that require rapid, thoughtful human response.
Middle managers are on the front lines of situational complexity. They don’t just respond to change – they interpret it, localize it, and guide their teams through it.
When layoffs happen, they explain the “why” to the survivors.
When new tools are rolled out, they help teams adapt and reskill.
When crises emerge, they bring stability and calm.
AI can flag a situation, but only a manager can lead people through it. The situational awareness and tactical flexibility of a great middle manager are irreplaceable assets during times of disruption.
Middle Managers as Change Agents in an AI World
In reality, AI isn’t replacing middle managers – it’s redefining their role. As AI takes over the analytical and routine components of management, it frees middle managers to focus on higher-order responsibilities, especially those shaped by people and situation.
They become:
Change agents: Leading cultural transformation, not just process implementation.
Translators: Bridging the gap between strategic vision and operational reality.
Coaches: Growing human potential in a tech-enhanced environment.
Navigators: Managing people through unpredictable, high-stakes situations.
The organizations that thrive in the AI era will be those that recognize this shift and equip middle managers with the capability, credibility, and community to lead more effectively than ever before.
What Organizations Must Do
To support the critical middle in adapting to AI and excelling in their redefined roles, companies should:
Invest in people skills: Coaching, communication, conflict resolution, and emotional intelligence must be prioritized in leader development. Leaders must implement regular training sessions and mentorship programs that give team members opportunities to practice and refine these skills in real workplace scenarios.
Train for AI fluency: Help managers understand how to use AI tools to enhance, not replace, their leadership. Offer hands-on workshops where managers can experiment with AI platforms to streamline tasks like data analysis, process optimization, communication, and risk reduction.
Empower situational autonomy: Give managers room to make context-sensitive decisions rather than enforcing rigid processes. Create clear decision-making guidelines and trust frameworks that outline boundaries while allowing flexibility for on-the-ground judgment calls.
Reinforce their strategic value: Position middle managers not just as implementers, but as innovators and cultural champions. Include them in strategic planning sessions and cross-functional initiatives where their insights can directly shape organizational priorities and culture.
Conclusion: The Human Core in a Technological Age
In the age of AI, the essential role of middle managers is not diminished – it is elevated. Because organizations don’t operate in a vacuum. They operate in the real world, full of people with unique needs and situations that defy algorithms.
Middle managers are the ones who make work work. They interpret complexity, respond with empathy, and lead people through changing circumstances with clarity and confidence. AI may drive efficiency, but middle managers drive resilience, innovation, and cohesion.
Rather than phasing them out, successful forward-looking companies will do the opposite: invest in their critical middle, embracing the fact that the combination of AI and empowered human leadership is the true key to thriving in a complex, fast-moving world.
