Companies use AI for HR tasks, but most are not replacing managers

In short: Some companies are handing routine HR and management work to AI, but broad “manager replacement” is not yet a common reality.

What's going on

Organizations are increasingly using AI to handle routine management and HR work, like answering employee questions and helping write performance reviews. Some people have started calling this idea “The Great Flattening,” meaning fewer layers of human managers. So far, it looks more like targeted automation than a widespread move to remove managers across the board.

IBM is one of the clearest examples in HR. The company says an AI agent now handles 94% of typical HR questions. IBM has also used AI to help draft performance reviews, create employee development plans, and coach managers on decisions.

IBM has suggested this approach could reduce HR staff per employee by 20% to 30% or more over time, with remaining roles shifting toward running the AI tools and doing more data analysis. Earlier IBM tools also gave managers pay suggestions based on skills, similar to a calculator that recommends a number after looking at your inputs.

What to watch

There is also clear pushback. In a Udacity survey, only 9% of respondents said they want to replace their entire workforce with AI. Many managers said they still prefer humans for institutional knowledge (knowing how things work in a specific company), creativity, and critical thinking.

Layoffs in tech have been high, including cases linked to AI, but the data suggests many companies are now focusing on humans working alongside AI rather than full replacement. The big question is whether AI stays mostly as an assistant for routine work, or whether more companies try to remove entire job layers and face employee and customer resistance.

Source: TechCrunch AI