AI Agents:

Remember the Human in the Loop

OC AI Agent

AI is coming for the way you work

Lately, when I talk to people about work – managers, individual contributors, business owners – there’s a quiet undertone in the conversation. Uncertainty. Concern. Not just about whether AI will automate tasks, but what it means for them. Will their role be next? Will their job still matter? Morale, especially among middle managers, is taking a hit, and for good reason. In some sectors, especially tech, business decisions are sending the wrong message.

Take the recent Microsoft layoffs, where developers and product managers were hit hardest. The underlying signal? That some roles, like product managers, might be seen as expendable or redundant in an AI-enabled structure. That the team can function just fine without the connective tissue between product, people, and leadership. That’s a risky assumption.

You’re doing management wrong

If business owners think AI is here to replace managers, I’d argue they’re misunderstanding both management and AI. Smart, effective management isn’t about gatekeeping. It’s about enabling clarity, reducing friction, and helping teams execute aligned, meaningful work. And right now, AI is uniquely positioned to support that work, not replace it.

But that nuance is getting lost. When leadership doesn’t clearly articulate how AI will be used, and instead lets the narrative spiral, managers start feeling expendable. And when managers feel expendable, that sentiment trickles down to every team member: If they can cut my boss, what’s stopping them from cutting me?

Managers don’t need to do less, they need to do different

One of the most powerful takeaways from a recent lecture I attended with JJ Englert on Building with AI Agents was this idea: predictability is a feature, not a bug. The tasks that drain people most; routine status updates, scheduling, redundant approvals, for example, are also the ones AI agents are great at handling. If we apply AI in the right way, we can offload the parts of work that drag morale down, not the people doing the work.

Managers don’t need to do less, they need to do different. With the right tools, they can stop spending time coordinating calendars and start focusing on aligning their team. They can review, reflect, and actually manage.

The case for Human-in-the-Loop

What JJ described, and what more businesses should pay attention to, is the concept of “human-in-the-loop.” That means AI doesn’t act independently; it performs tasks under the direction and review of real people. This model creates support, not replacement. It helps managers shift from busywork to deep work. From reacting to leading.

But it only works when leadership is honest about what AI is for. Is it a tool to cut headcount? Or is it a way to elevate your workforce? If you want high morale, make sure your team knows the answer.

I’ve found this approach useful not just in the workplace, but in personal conversations too. We all slip into shorthand. We all say things we didn’t mean to sound the way they came out. And most of us don’t mean harm. But without shared tools, we rely on assumptions and emotions in the moment. Whether it’s a safe word like “squid” or a clarifying question like “What do you mean?”, these verbal guide-rails help us navigate complexity with more grace. They won’t eliminate misunderstanding completely, but they’ll give your team a fighting chance to work through it, together.

AI is coming for your industry

Here’s the truth: AI isn’t coming for your job. It’s coming for your industry. For your customers. For your market. It will change what they expect. It will redefine what’s possible. And businesses that use AI not to shrink their workforce but to expand their imagination will be the ones that thrive.

If you’re a manager, your job is not going away. But the way you do your job might… and that could be a really good thing. Lean into it. Ask yourself: What’s predictable that I can offload? What new possibilities open up if I do? The answers to those questions won’t just improve your workflow. They might save your team’s morale, and unlock something you haven’t even imagined yet.

Which brings to mind a common phrase a former manager used to say when I got overly eager on an idea: Don’t throw the baby out with the bath water.

Resources:

JJ Englert: LinkedIn

Hit hardest in Microsoft layoffs? Developers, product managers, morale

by Alex Halverson, The Seattle Times