Axios · Meta · U.S. · Fortune Technology
The megamanager era: AI is doubling bosses’ workloads—and the costs are just beginning to show
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The average American manager now oversees 12 direct reports, and the data suggest AI is both the cause and justification for this quiet but seismic shift in how the U.S. workplace is organized.
Key facts
- The internet accelerated labor productivity growth from roughly 1.5% per year to nearly 3.0% per year by 2000
- Another Gartner survey found 75% of HR leaders believe managers are already overwhelmed by their expanding responsibilities, and 69% say managers lack the skills to lead change effectively even
- Chief U.S. economist Michael Gapen’s team found that electrification doubled output per hour in nonfarm business between 1900 and 1929
- Goldman Sachs economists estimate AI has so far raised the overall unemployment rate by 0.1 percentage point—a modest headline figure that obscures a bifurcated picture: Jobs easily substituted by AI
Summary
Call it the megamanager era. If AI can handle scheduling, summarize performance reviews, monitor project timelines, and surface early warning signals about team dysfunction, do you need as many human coordinators? For companies, the immediate math looks appealing. AI is also genuinely helping some managers cope with the expanded workload.