
This week, the software company SUSE said it is cutting about 10% of its workforce and pointed to AI and automation as a major reason. It won't be the last. Many of the CEOs I talk with are hearing the same question from their boards: if AI makes us more productive, why is headcount flat?
Before you answer that with a reduction, look at two pieces of research released in the last two weeks.
I see the same pattern in most mid-market companies:
So employees work it out on their own. Some lean in. Some quietly avoid AI. Some paste customer data into tools nobody approved. RSM found that 85% of middle-market companies say their executives are more enthusiastic about AI than their employees are. That gap won't close by itself.
You don't need a new C-suite title. You need one accountable leader with a clear mandate. That can be your COO, your CIO, or a fractional executive. The job:
I've led workforce integration at scale, including bringing an acquired offshore engineering organization into a larger company. That lesson applies directly to AI: if you change the structure before you understand the work, you lose the people who hold the knowledge, and then you pay to get it back.
A better sequence:
This is where operational transformation and change management meet. Fix the process first, then make one person clearly responsible for how people and AI split the work.
One accountable leader with a clear mandate. In a mid-market company that is usually the COO, the CIO or a fractional executive. The owner maps tasks between people and AI, names who checks AI output, sets where freed-up capacity goes, measures results and leads communication with employees.
Not first. Redesign the work for two or three processes, run it for 60 to 90 days with real measurements, and let attrition and redeployment absorb freed capacity. Gartner predicts about 30% of employees replaced by AI will be rehired by 2029, often at higher cost, because companies cut before they understood the work.
Most mid-market companies don't need a new C-suite title. They need one existing leader, or a fractional executive, who is clearly accountable for the work design between people and AI, with the authority to change processes and roles.
Mid-market companies and nonprofits across Central Florida are adopting AI quickly, usually without a CIO or transformation lead to own the people side.
That's where I help. I bring an experienced executive to design the operating model, lead the change, and make sure the gains show up in the business. If AI is changing how work gets done in your company, learn about our change management services.
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