From pyramids to hourglasses: how AI can change Indian ...
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 Evolution of Organizational Structure
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.
Implications for Indian Businesses
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. In European countries as well as the U.S., the hourglass model is taking hold fast. A Gartner report forecasts that by 2026, one in five companies there will use AI to slash over half their middle managers, saving costs while boosting output.
India’s path is its own. Cities like Bengaluru and Hyderabad pulse with AI innovation, yet India ranks 72nd on the International Monetary Fund’s AI Preparedness Index with a score of 0.49, far behind the U.S. (0.77) or Singapore (0.80). The lag stems from uneven infrastructure — rural areas lack the connectivity urban hubs enjoy — and a cultural lean towards hierarchy that’s hard to shake.
The Hybrid Approach in India
Indian firms aren’t diving fully into the hourglass; they’re testing it with a hybrid spin. E-commerce leaders like Flipkart and Reliance Jio use AI to predict buying trends or iron out delivery kinks, but they keep layers of managers to tackle India’s diverse, multilingual markets. Lower labour costs ease the pressure to cut middle roles, and our respect for authority slows the shift to flatter organizational structures.
This hybrid tack isn’t a retreat — it’s a strategic play, blending AI’s perks with what already works. The perks of such blending are real and enticing. Efficiency tops the list. Innovation follows close behind. Flexibility’s another win.
Challenges and Opportunities
But the road’s not all rosy. Jobs hang in the balance, especially for middle managers and the less skilled. Ethics throw up another snag. Infrastructure’s a sticking point too. Culture adds a twist.
Start with reskilling — train staff in AI basics, data skills, and problem-solving; adopt a hybrid model — use AI for analytics or customer chats, and keep humans for the big decisions; lay down ethical guidelines — set rules for fair, open AI, with checks to dodge bias and build trust.
India’s hourglass won’t ape the West — it’ll be our own blend, fusing AI’s power with our economic and cultural roots. By doing so, we could lead in AI-driven business. It’s about time we start syncing tech with human grit and India’s unique rhythm. For our firms, this should not be just a trend — it’s a chance to rethink work, value, and how 1.4 billion of us shape the future.
Published - May 19, 2025 08:30 am IST
Text and Context / Artificial Intelligence / technology (general) / business (general)
