AI adoption requires different skillsets from managers with a greater emphasis on cognitive and interpersonal capabilities such as collaboration, creativity and problem solving, the research demonstrates. An analysis of job postings data from the US shows that when companies start using the technology more intensively, the number of their managerial vacancies increases relative to other positions.

“This study indicates is that the adoption of AI requires more top talent, and that our more humane abilities will not only be augmented but will be critical to the success of this technological innovation,” said Prof. Giné. The process of adapting the new technology is an “opportunity to highlight our humanity,” she added.

The researchers calculated the ratio of AI-related vacancies to the total number of job postings for each firm to provide a human-capital measure of AI adoption over time. The information for the study came from 375 million job vacancies in the US from 2010 to 2022 provided by labour markets analytics firm Lightcast.

The results showed that when firms become more AI intensive, they post more managerial vacancies both in absolute terms and as a share of the total.  A one percentage point increase in AI adoption leads to a 2.5%-7.5% jump in managerial vacancies and a 0.4%-1.4% increase in the share of managers.

“These dynamics suggest that AI will not diminish the role of managers but rather expand it, as they will need to oversee increasingly complex systems where human and AI workers interact,” the authors wrote. “The sheer intricacy of coordinating between human teams and algorithmic systems can create a higher demand for managerial oversight.”

The findings do also point to some replacement of job positions with AI, even as managerial posts increase. When AI share increases by one percentage point, overall job postings drop by as much as 8%, non-AI vacancies fall, while non-AI or non-managerial vacancies drop 13%, according to the report.

Prof. Giné will present the research at IESE’s Global Alumni Reunion being held at the school’s Madrid campus from Nov. 14-16 to mark the 50th anniversary of the school’s activities in the Spanish capital.

Here are some more findings from the research:

• While AI adoption raises managerial salaries, it does so in a way that reflects broader market trends, suggesting that firms become more productive and value both managerial and non-managerial roles more as they integrate AI.
• AI systems are not "set and forget." They require constant tuning, monitoring, and ethical oversight, adding complexity together with a degree of automation.
• “Contrary to the common narrative that AI will lead to a reduction in management layers, the process of AI integration itself might actually increase managerial intensity,’’ the report concludes. “The need for more nuanced oversight, the complexity of managing the human-AI interface, and the interpretation of AI outputs all contribute to this likelihood.”

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