FROM PYRAMIDS TO HOURGLASSES: HOW AI CAN CHANGE INDIAN WORKPLACES

McKinsey estimates that Artificial Intelligence could pump trillions into the global economy, with firms seeing productivity rise by up to 25% when they embrace it.

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That’s the lure that AI promises — efficiency and flexibility

Artificial Intelligence (AI) has outgrown its role as a mere task automator — it’s now reshaping how Indian companies are built and run. The old pyramid model, with its top tier of bosses, a thick layer of middle managers, and broad base of workers, is giving way to something new — an hourglass. In this setup, AI shrinks the middle by taking over coordination and decision-making, letting leaders at the top focus on strategy while the bottom diversifies into a mix of people and smart tools.

For India, this shift is a double-edged sword, brimming with potential yet fraught with hurdles. Getting it right could propel Indian businesses onto the global stage while getting it wrong could leave them trailing.

The hourglass model

Imagine a company where top executives plan for the future without worrying about the nitty-gritties of the everyday workspace because AI now handles schedules, tracks performance, and crunches data for decisions. The middle level, once crowded with managers, thins out as AI steps in, cutting the need for human oversight.

At the base, frontline workers, specialists, and AI systems team up using real-time insights to get the job done more efficiently. It’s a sleeker and quicker way to work, and is powered by AI’s ability to sync operations, adapt on the fly, and pair human ingenuity with machine precision. McKinsey estimates that AI could pump trillions into the global economy, with firms seeing productivity rise by up to 25% when they embrace it.

Small and Medium-sized Enterprises (SMEs), India’s economic spine, stand to gain big from that 25% productivity lift. That’s the lure that AI promises — efficiency and flexibility.