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Fortune
Fortune
Ruth Umoh, Lily Mae Lazarus

Why traditional managers are fading—and the new leaders taking their place

An office manager showing some documents on a digital tablet to her colleague in a bright, modern office space.

Hello from sunny Austin, Texas, where SXSW is in full swing.

Are managers still relevant in the age of AI? How about amid the fast-evolving talent landscape? It’s a question many avoid yet one I’ll explore this afternoon with Rishad Tobaccowala, former global strategist and chief growth officer at Publicis Groupe and author of Rethinking Work.

Relevance is an uncomfortable subject for leaders, Tobaccowala says, because no one wants to face the possibility of becoming obsolete. Yet, despite rapid technological advancements and shifting workplace dynamics, too few are proactively securing their future in corporate America by reinventing themselves, adapting to the new business landscape, and learning to collaborate with intelligent machines.

This reluctance may partly explain why traditional management is fading, and a new kind of leadership is emerging. For decades, managers played a critical role in organizational efficiency, relying on hands-on oversight: walking the floor, checking in on employees, and controlling the flow of information. However, in a distributed, digital-first world where hybrid work is the norm, and younger generations reject constant supervision, that model is outdated. Today, workers can turn to AI tools, online courses, digital resources, and even mentors for knowledge, making traditional managerial roles less relevant, Tobaccowala asserts.

Already, many companies have eliminated senior management positions in favor of automation, data-driven decision-making, and employee self-sufficiency, all in pursuit of greater speed and agility—something bureaucratic processes often stifle.

But the thinning of traditional management layers doesn’t mean senior leadership isn’t essential, Tobaccowala stresses. Instead, leaders must rethink their value. Sure, AI can automate tasks, but it cannot replace strategic vision, crisis leadership, innovation, or the ability to cultivate company culture. Businesses still need experienced leaders to align teams, drive long-term goals, and guide organizations through uncertainty.

Tobaccowala believes the future of leadership hinges on three key traits:

1. A growth mindset that focuses on big-picture thinking and development over micromanagement

2. Improvisation skills and the agility to pivot quickly in response to change

3. A thirst for continuous learning in a world of constant transformation

The challenge for today’s leaders isn’t just staying relevant—it’s redefining leadership itself because future leadership won’t belong to those who cling to authority but to those who embrace adaptability, curiosity, and the power to inspire.

I’ll be in Austin through Wednesday, March 12. Shoot me a message at the email below to connect.

Ruth Umoh
ruth.umoh@fortune.com

Today's newsletter was curated by Lily Mae Lazarus.

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