Eric Schmidt Predicts AI Agents Will Flatten Corporate Hierarchies
Eric Schmidt predicts AI agents will eliminate thousands of coordination roles to restructure corporate hierarchies and remove the coordination tax in large organizations.
Former Google CEO Eric Schmidt predicts that AI agents will fundamentally restructure corporate hierarchies by eliminating the coordination tax associated with managing large organizations. Speaking on the In Good Company podcast, Schmidt described a future where AI assistants monitor company activity for alignment with leadership values, track project progress, and identify profit opportunities.
Schmidt argues this technology will make businesses faster and flatter, potentially rendering thousands of coordination-focused employees redundant. He refers to these workers as glue people and estimates that in a company of 10,000 employees, AI could eliminate a few thousand roles.
Addressing market concerns, Schmidt rejected the notion that AI is a bubble, citing the rapid revenue growth of Anthropic as evidence of real market demand. While acknowledging efficiency gains, he expressed concern over the potential for abusive management practices via AI clones and urged executives to transition displaced workers legally and humanely.
