Remember those old “choose your own adventure” books? Agentic AI is like that, but instead of just deciding whether to fight the dragon or sneak past, it’s deciding how to optimize your entire department’s workflow. And, increasingly, doing it without asking you.
The Financial Times’ “Working It” newsletter (May 14, 2025) dropped a fascinating nugget: agentic AI isn’t just a buzzword anymore; it’s actively reshaping how companies operate. We’re talking AI systems that can autonomously handle multi-step tasks, from onboarding new hires to approving expenses. Forget simple automation; this is about AI taking initiative.
The Productivity Paradox: Efficiency vs. Employment?
Salesforce CEO Marc Benioff, never one to shy away from a bold statement, touted the potential for significant productivity gains. The lure is simple: do more with less. But that “less” increasingly means fewer humans. While Benioff frames it as efficiency, the underlying implication is clear: agentic AI could lead to substantial reductions in labor costs and a radical re-thinking of organizational structures. It’s the “build a better mousetrap” scenario, except this mousetrap eliminates the need for the entire rodent control team.
This isn’t just about replacing repetitive tasks. Agentic AI can analyze data, identify bottlenecks, and re-route workflows on its own. Imagine an AI that not only processes invoices but also negotiates payment terms, flags potential fraud, and even suggests process improvements based on its analysis of thousands of past transactions. That’s the level of autonomy we’re talking about. The human role shifts from “doer” to “overseer,” and the question becomes: how many overseers do you really need?
The Executive Blind Spot: Are Leaders Really Seeing the AI Landscape?
Here’s where things get really interesting, and a bit unsettling. A McKinsey report highlighted in the FT piece reveals a significant disconnect: executives often underestimate how much AI is already being used by their employees. It’s like the scene in “Office Space” where Peter Gibbons discovers the company has been skimming fractions of pennies from every transaction – except this time, the skimming is being done by employees using AI tools to make their jobs easier (and potentially making their managers obsolete in the process).
Why does this matter? Because if leaders aren’t aware of the extent of AI adoption, they can’t effectively plan for its consequences. They might be clinging to outdated organizational models, underinvesting in reskilling programs, or simply missing opportunities to leverage AI more strategically. It’s like trying to navigate with a map that’s several years out of date – you might eventually reach your destination, but you’ll take a lot of unnecessary detours along the way.
AI-Native Startups: A Glimpse into a Radically Different Future
Perhaps the most disruptive aspect highlighted in the newsletter is the rise of AI-native startups. These aren’t just companies that use AI; they’re companies built on AI, with minimal human staff and fluid organizational hierarchies. Think of it as the ultimate lean startup, where AI handles core operations and humans are relegated to strategic oversight or creative tasks that AI can’t (yet) replicate.
This model challenges traditional employment paradigms in a fundamental way. If a company can operate effectively with a fraction of the staff of a traditional organization, what does that mean for the future of work? It’s a question that keeps HR departments up at night, and it’s a trend that could reshape entire industries.
- Impact on Job Security: Traditional roles are threatened as AI handles complex tasks.
- Organizational Restructuring: Hierarchies become more fluid, potentially flattening management layers.
- Shift in Skill Requirements: Demand for AI-related skills increases, while demand for routine tasks decreases.
Human-AI Collaboration: A Hybrid Future?
The forecast isn’t entirely bleak. HR leaders anticipate that 61% of workers will retain their roles, even with AI integration. The vision is a hybrid one, where humans and AI work together, leveraging each other’s strengths. However, even in this optimistic scenario, there’s a 19% reduction in operational costs. That’s a polite way of saying that 19% of positions may be eliminated.
The key takeaway? The future isn’t about AI replacing humans entirely, but about AI augmenting human capabilities. The challenge lies in figuring out how to adapt our skills, our organizations, and our policies to this new reality. Are we training the next generation of “AI whisperers” – people who can effectively manage and collaborate with AI agents? Or are we simply hoping that the robots will be kind?
Ultimately, the rise of agentic AI isn’t just a technological shift; it’s a societal one. It demands that we re-evaluate our assumptions about work, skills, and the very nature of human contribution. And as always, the companies and individuals who adapt the quickest will be the ones who thrive.
