In an era where artificial intelligence threatens to reshape the workplace, one type of organization stands particularly vulnerable: the bureaucratic company. Meanwhile, another model—what I call the "relational + interconnected" company—not only resists AI replacement but can leverage it to reach new heights of performance.
No leader sets out to create a bureaucracy, yet organizations frequently evolve into bureaucratic structures through a series of seemingly reasonable business decisions. It happens when leaders embrace short-term "assembly-line" management philosophies with two primary goals:
These strategies appear to make good business sense at first glance. They reduce the company's vulnerability to losing key personnel and help drive salary costs down. But the unintended consequence is the creation of a bureaucratic organizational style where employees and departments lose sight of the organization's overall mission.
Instead of seeking improvements or innovations, workers focus narrowly on short-term metrics within a carrot-and-stick management framework. Combined with the constant fear of being replaced, this environment discourages employees from asking the transformative questions that could take a company from good to great. People learn to think small and simply do what's asked—sometimes even when they're not asked anything at all and do nothing all day. Attempts to improve processes are often perceived as challenges to leadership authority, and it becomes obvious to employees that it is better to keep quiet than lose your job trying to make something better.
The end result? At bureaucratic organizations, the leaders are the only people who are allowed to be “human” with ideas, out-of-the-box thinking, and improvisation. Everyone beneath them functions as a cog in a machine, expected to perform their designated role without question. In this environment, employees become replaceable parts rather than valued contributors – replaceable by AI.
Consider a common scenario: implementing an IT ticketing system.
When bureaucratic companies implement a ticketing system, their stated goals typically include:
Yet the actual experience for users tells a different story:
The end result? An inefficient system that wastes time throughout the organization—yet leadership considers the problem "solved" because they implemented a "solution." When complaints arise, the response isn't to reconsider the approach but to "improve SLA metrics," missing the fundamental flaws in the system itself.
An inefficient system like this is more liable to be completely replaced by AI, which may be able to function at a similar level – but only because the employees are already functioning as machines.
How would a relational and interconnected company handle the same IT support challenge?
In this model, a ticketing system might still exist, but not as a barrier between users and support staff. Instead, it serves as a starting point for human connection through a concierge-style service where specific technicians are assigned to support particular teams.
With this strategy, the user experience transforms dramatically:
Anyone who has experienced both systems can immediately recognize the superiority of the relational approach. Yet many leaders resist it, preferring the comfort of SLA metrics and the illusion of work being done—even at the cost of dehumanizing their workforce and creating inefficiency.
In bureaucratic environments, employees who want to build relationships and take care of other departments must fight against the system to take care of others. The organization effectively tries to turn people into robots—precisely the endpoint that makes these companies vulnerable to actual AI replacement.
Relational and interconnected companies, by contrast, embrace uniquely human capabilities. They encourage employees to ask, "How can we do this better?"—a question that bureaucracies often view as threatening. This fundamentally human drive for improvement becomes a source of innovation and adaptation that AI cannot replicate.
Creating this type of organization requires leadership that:
These leadership approaches can be reinforced through policies that:
The most successful organizations will be those that combine relational and interconnected human systems with strategic AI implementation. While bureaucratic companies risk being overtaken by AI—since they've already tried to make their human workers function like machines—truly human-centered organizations will thrive by using AI to enhance their distinctly human advantages.
Relational + interconnected employees are empowered to improve their own jobs and departments – each person an engine of efficiency and improvement. In this environment, AI will further empower those individuals to improve their own areas, and they will be able to assist in the choosing of AI models and systems that improve their area. Again, each person is empowered to improve their own area, not just the leaders at the top. AI will begin handling routine tasks and heavy data-mining operations while human creativity, relationship-building, and innovation drive the organization forward. The result: greater efficiency, higher profits, improved employee satisfaction, and better customer experiences.
As we navigate the AI revolution, the question for leaders isn't whether to adopt new technologies—it's whether their organizational structure allows humans to be fully human while pairing with these new technologies. Those who embrace relationship-building and interconnection in their organizations will find themselves not just surviving but thriving in the coming era.
Let's talk about how we can help turn your ideas into working software.
Get in touch