The Race to Build Lean AI Organizations May Be a Massive Long-Term Mistake | May 2026

Over the last few months, one of the biggest shifts I’ve been seeing across founder-led startups and high-growth companies is the race toward “modernizing” through AI.

Everywhere I go right now, whether it’s clients, founders, friends, family, neighbours, podcasts, LinkedIn, dinner conversations, or group chats, the conversation always seems to come back to the same thing: AI is going to replace everyone. Organizations will need fewer people. Entire teams will disappear. Companies will run leaner than ever before.

And honestly, I understand why so many leaders are excited.

The pressure on businesses right now is real. Growth has slowed for many companies. Capital is tighter. Investors want profitability. Leadership teams are being pushed to do more with less while still delivering growth.

AI absolutely has the potential to reshape how organizations operate and improve productivity in ways we’ve never seen before.

But I also think many companies may be overcorrecting.

Because in the rush to become leaner, faster, and more efficient, some organizations may be unintentionally removing the very layer responsible for developing future leaders, future A-Players, and preserving the culture that helped build the company in the first place.

That’s the part I don’t think enough people are talking about.

The Quiet Elimination of Emerging Talent

Across the executive search market, I’m seeing more companies prioritize experienced senior operators while reducing investment in junior and emerging talent.

On paper, it sounds logical. Hire fewer people. Flatten the org chart. Reduce management layers. Use AI to automate more executional work. Bring in senior people who can operate immediately.

Short term, some of this may absolutely improve efficiency. But long term, I think it creates a very different problem.

Because great leaders and future A-Players don’t magically appear at the VP or C-level one day. They develop over years through mentorship, collaboration, exposure, mistakes, repetition, coaching, and learning inside organizations that gave them the opportunity to grow.

Most great executives were once the junior person sitting quietly in the room learning how leadership actually works.

What happens if that layer disappears?

Companies Risk Losing More Than They Realize

What concerns me most is that many companies may unintentionally become increasingly top-heavy over time. More senior operators. Higher compensation costs. Fewer developing leaders underneath them. Fewer future A-Players growing inside the business.

But it’s not just leadership development at risk.

It’s culture, loyalty, mentorship, institutional knowledge, and the feeling employees have that a company is actually invested in their future instead of simply looking for the fastest way to replace them.

Especially for younger generations entering the workforce today, loyalty is earned differently. People want to feel developed, mentored, included, and invested in. They want to know the company sees a future for them beyond immediate output and short-term productivity.

Because future leaders are not developed through AI tools alone.

They learn by watching experienced leaders closely every day. How they communicate. How they handle pressure. How they navigate conflict. How they collaborate. How they mentor. How they treat people. How they help others grow.

That human layer inside organizations matters enormously. And once it disappears, culture can become far more transactional than many founders realize.

Younger Talent Often Sees the Future First

Another thing I think companies underestimate is how valuable younger and emerging talent can be inside innovative organizations.

Younger generations often see shifts before leadership teams do. They adopt technology faster, consume differently, communicate differently, challenge assumptions differently, and often spot changing consumer behaviours earlier.

That perspective matters enormously in sectors like SaaS, fintech, AI, ecommerce, digital products, and consumer brands where markets evolve quickly.

Ironically, many companies chasing innovation may be weakening one of the biggest drivers of innovation itself: emerging talent and future A-Players.

AI Should Strengthen Organizations, Not Hollow Them Out

To be clear, this is not an argument against AI.

I actually believe the future belongs to leaner, smarter, highly accountable organizations that use AI effectively. AI will automate tasks, reshape org charts, improve productivity, and absolutely eliminate certain types of work.

But there’s a major difference between becoming more efficient and eliminating your future leadership pipeline altogether.

The companies that will thrive over the next decade likely won’t be the ones that simply cut the deepest. They’ll be the ones that find the right balance between AI-enabled productivity, strong experienced leadership, and continued investment in developing future A-Players internally.

Because eventually every great company needs its next generation of leaders.

And future A-Players are not built overnight. They’re developed over time through trust, mentorship, opportunity, coaching, and organizations willing to invest in their growth.

If companies stop building that layer now, rebuilding it later may become one of the biggest mistakes many founders didn’t see coming.