From project management to enterprise resource planning, middle managers are crucial in making sure every aspect of a department or team is functioning. Middle managers have a large impact on organisational performance.

Recent advancements in artificial intelligence, however, may significantly affect the roles of middle managers in the workplace, particularly in the financial services industry.

As AI takes over routine tasks, middle managers face pressure to manage hybrid teams of humans and AI, which require new skills in emotional intelligence and leadership.

According to a 2023 study by the University of Eastern Finland, the adoption of AI in financial service teams, for example, is placing a heavier workload on mid-level managers. The financial sector has rapidly adopted AI, automating many routine tasks previously performed by humans.

The study interviewed 25 middle managers employed by a Scandinavian financial services firm. The results showed that integrating AI into teams can be complex. It places new demands and challenges on middle management, forcing them to adapt and find balance.

The findings also revealed that AI is changing the social dynamics of middle management in the financial sector. Simpler AI systems were viewed as tools, while more advanced systems, like chatbots, were perceived as colleagues. This shift impacted how managers interacted with their teams and technology.

“In addition, the employees were concerned about their continued employment, and did not always take an exclusively positive view of the introduction of new artificial intelligence solutions,” the study explained.

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The report also found that the introduction of AI in the workplace posed a series of ethical considerations for middle managers. There were considerations about the fairness of decisions made by AI systems.

Middle managers will need to develop a fresh set of skills to understand both the technical aspect of AI and the emotional aspect of it. They also need emotional intelligence to navigate the human impact and problem-solving skills to address the technical challenges.

With their hands-on experience and team leadership roles, middle managers are in a perfect position to guide their teams towards responsible AI adoption. They can provide practical training on navigating potential pitfalls like data bias and unintentional discrimination, ensuring AI is used ethically and effectively.

Moreover, AI systems cannot completely take over human management in areas such as motivation and inspiration of team members.

“This is why skills in interaction and empathy should be emphasised when selecting new employees for managerial positions which emphasise the management of teams integrated with artificial intelligence,” said Jonna Koponen, an assistant professor involved in the study

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How middle managers remain indispensable in the age of AI

Middle managers remain indispensable in the face of AI if they focus on uniquely human skills and leverage AI as a tool to enhance their capabilities. Here’s how:

1. Become an AI champion

• Embrace and understand AI: Instead of fearing AI, actively learn about its capabilities and limitations within your industry.
• Identify opportunities: Find ways to use AI to improve efficiency, productivity, and decision-making within your team.
• Advocate for ethical AI implementation: Ensure AI is used responsibly and transparently within your organisation.

2. Develop essential human skills

• Build emotional intelligence: Cultivate empathy, self-awareness, and strong interpersonal skills to navigate the emotional and social complexities of leading teams in an AI-driven environment.
• Sharpen critical thinking and complex problem-solving: Go beyond routine tasks and focus on strategic thinking, creative problem-solving, and addressing challenges that require human judgment and intuition.
• Develop adaptability and continuous learning: Embrace change, stay updated on new technologies, and continuously develop new skills to remain relevant in a dynamic workplace.

3. Focus on uniquely human tasks

• Become a leader and mentor: Inspire, motivate, and guide your team, fostering a culture of collaboration and innovation.
• Communicate and foster relationships: Build strong relationships with your team members, stakeholders, and clients, communicating effectively and fostering trust.
• Celebrate creativity and innovation: Encourage experimentation, new ideas, and out-of-the-box thinking to drive innovation and stay ahead of the curve.

4. Leverage AI as a tool

• Automate routine tasks: Use AI to free up time for more strategic and human-centric activities.
• Gain insights from data: Utilise AI-powered analytics to understand trends, identify opportunities, and make better decisions.
• Enhance team performance: Use AI tools to improve collaboration, communication, and knowledge sharing within your team.

AI as a powerful ally, not a threat

The rise of AI in the workplace presents a compelling opportunity for middle managers to redefine their roles and solidify their importance within organisations. Rather than fearing obsolescence, they should proactively embrace AI as a powerful ally.

By understanding its capabilities and limitations, middle managers can identify areas where AI can optimise efficiency and enhance decision-making, becoming champions for its ethical implementation within their teams.

Learning AI in-depth allows them to focus on cultivating uniquely human skills like empathy, communication, and complex problem-solving, which become even more crucial as AI takes over routine tasks.

Instead of managing the mundane, they can dedicate their time to strategic thinking, fostering innovation, and navigating the intricate social dynamics of hybrid teams composed of both humans and AI.

In this evolving landscape, a commitment to continuous learning becomes paramount. Middle managers must actively seek out opportunities to expand their knowledge and adapt to new technologies, ensuring they remain invaluable assets driving success in the age of AI. 

A proactive approach will not only secure their own relevance but also empower their teams and organisations to thrive in an increasingly AI-driven world.