By 2026, 20% of organizations will use AI to reduce 50% middle management roles: Gartner

New Delhi [India], October 24 : As AI continues to evolve alongside human usage, it is reshaping organizational structures, decision-making processes, and even the boundaries of technology's impact on daily life, according to Gartner.
By 2026, 20 per cent of organizations will use AI to reduce more than half of their current middle management roles.
"Through 2026, 20 per cent of organizations will use AI to flatten their organizational structure, eliminating more than half of current middle management positions," said the report.
This strategy aims to cut labor costs while boosting productivity, as AI takes over tasks like scheduling, reporting, and performance monitoring.
However, the shift could disrupt traditional mentoring pathways and leave junior employees with fewer development opportunities.
Concerns over job security and increased management responsibilities for remaining staff may also pose significant challenges.
By 2029, AI's influence is set to extend into the boardroom, with 10 per cent of global boards predicted to use AI-generated insights to challenge executive decisions.
This development will empower board members to rely on data-driven guidance, thereby reshaping leadership dynamics and reducing the influence of maverick executives.
While AI insights may initially seem at odds with the traditional views of board members, their growing effectiveness will likely lead to broader acceptance.
By 2028, generative AI is expected to play a key role in corporate branding, with 30 per cent of S&P companies likely to use AI-specific labels, such as "xxGPT," to distinguish their products and create new revenue streams.
As the GenAI landscape becomes more competitive, companies will need to adopt specialized models tailored to their industry to maintain a competitive edge.
Security concerns surrounding AI agents will grow in the coming years, with Gartner predicting that 25 per cent of enterprise breaches will be linked to AI agent abuse by 2028.
As AI agents expand rapidly into more complex use cases, businesses will need to enhance their security measures to protect against both external threats and malicious internal actions.
To address these security challenges, "Guardian Agents" will emerge as a solution. By 2028, 40 per cent of Chief Information Officers (CIOs) are expected to demand autonomous agents that can track and oversee AI activities, ensuring compliance with security, ethics, and data management standards.
Finally, the shift to microgrids is set to accelerate, with Fortune 500 companies expected to invest USD 500 billion by 2027 to mitigate chronic energy risks and support the growing energy demands of AI.
Microgrids offer a more sustainable and cost-effective energy solution, enabling companies to reduce their reliance on traditional power grids and better manage day-to-day operations.