"AI is forcing every leader into a choice they can't dodge: do you believe your people are fundamentally creative and motivated, or lazy and in need of control? Most leaders won't want to answer that honestly, but their AI strategy already has. The AI mandates. AI-blamed layoffs. So-called AI-enabled " bossware." The truth is in the tools: many leaders prefer "synthetic" employees they can control, and will treat human beings much the same way until they can be replaced."
"Klarna's CEO famously bragged about AI replacing his staff after the company fired or lost 22% of its workforce a year earlier (this blew up in his face, of course). Duolingo effectively announced a hiring freeze with the introduction of AI. Elijah Clark, a CEO who advises other CEOs on AI, quipped to Gizmodo, "AI doesn't go on strike. It doesn't ask for a pay raise" as he expressed excitement about laying off employees in favor of AI."
AI adoption is reshaping managerial assumptions by prompting leaders to decide whether workers are inherently creative or require strict control. Many leaders implement AI mandates, justify layoffs as AI-driven, and deploy monitoring tools and so-called "bossware." Examples include executives celebrating staff replacement, companies instituting hiring freezes after AI introduction, and a significant portion of workers reporting electronic monitoring. Public messaging and surveys reveal employer preference for automated hires over recent graduates. Historical management theory frames this shift as reinforcing Theory X assumptions that workers need control, rather than Theory Y beliefs in employee self-direction and creativity.
Read at Fast Company
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