Generative AI’s Impact on Organizational Structures: An Analysis in Collaboration with ChatGPT

Abstract

<title>Abstract</title> Artificial intelligence has been rapidly increasing in sophistication and impact, reinforcing discussions of its extensive potential to disrupt jobs and organizations. This paper investigates the disruptive potential of generative artificial intelligence (genAI) in organizations by investigating its impact on organizational structures for core business functions as work re-design occurs with the introduction of genAI. Our analysis investigates the impacts of genAI, but we also use genAI as a partner, in collaboration with the authors. Data from the O*Net 2023 database is utilized to consolidate a list of 85 corporate knowledge worker roles and (associated skill levels), as part of our analysis, ChatGPT contributed its assessment as to which roles genAI will take over partly or fully in the near future. Our analysis led to a “flat” organization structure which allowed the surfacing of the extent of impact genAI will have on roles and, in turn, organizational structures. Results suggest that use of genAI is accelerating the trend of flattening hierarchies and will lead to more independent teams with joint Human-AI capability. Finally, we observe that AI is already on a disruptive trajectory. Individuals and organizations not engaging with the potential of genAI, and the expected organizational changes, are at serious risk of underperformance, role redundancy, and negative outcomes from the uncontrolled use of genAI.

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