Two Types of Workers at Risk of Displacement by AI in the Labor Market

Two types of workers are likely to be displaced from the labor market by AI. AI-era changes will leave little room for those who only manage people. In a recent discussion on the Invest Like The Best podcast, Chesky, the CEO of Airbnb, argued that the era of AI will not have room for purely people managers—those whose daily work centers on coordinating meetings, acting as the organizational psychologist for employees, or simply serving as a link in the information flow from top to bottom without touching the product. Chesky asserted: “I don’t see the value of people who just manage people in the future. AI will change the corporate structure so dramatically that every leader must become a hybrid manager.” The Silicon Valley term Manager IC (Individual Contributor) is becoming the new buzzword—leaders who can both manage a team and directly contribute to production or creation. Chesky explained that when AI can automate reports, schedules, and administrative tasks, the remaining value of a boss lies in hands-on execution. If a manager does not deeply understand code, design, or product architecture, they will struggle to make correct decisions when coordinating with AI. He pointed to Apple design legend Jony Ive as a model: Ive led one of the world’s most creative teams and personally engaged in drawing, understanding materials and manufacturing processes. That leadership style—managing employees by doing the work rather than managing people in isolation—will be in demand. Chesky’s warning isn’t a vague prophecy. It rests on the reality that other tech giants are also preparing. Dario Amodei, CEO of Anthropic, warned that AI could disrupt up to 50% of entry-level office jobs in a few years. Mustafa Suleyman, head of AI at Microsoft, proposed an even sterner path, estimating that most professional jobs could be replaced or transformed within 12 to 18 months. In a world where the pace of change is measured in months, bulky multi-layer management structures will become a drag on the business. At Airbnb, AI isn’t just a tool for drafting emails or summarizing meetings. Chesky said the technology is the backbone that helps the company—valued at over $84 billion—operate more leanly and deliver personalized user experiences at speeds humans can’t match. “AI is the most wonderful thing that has happened to Airbnb,” he emphasized. Another hot topic is whether AI will steal people’s jobs. Jensen Huang, the architect behind Nvidia’s rise, offered a classic answer: “AI won’t take your job. The person who knows how to use AI will take that position.” At Milken Institute 2025, Huang stressed that no industry is immune; from software engineers to financial analysts, those who refuse to integrate AI into their workflow will render themselves obsolete. This creates immense pressure on the rigid ‘type two’ workers Chesky warned about who can’t survive the era of AI. In the new era, growth mindset is no slogan—it’s a survival skill. An editor who knows how to use AI to optimize keywords and verify data will be far more effective than a traditional editor; an architect who uses AI to simulate space will outpace those who rely on manual drawings. Ted Sarandos, co-CEO of Netflix, offered a pragmatic view that AI will substantially affect Hollywood and the entertainment industry. He argued that AI cannot replace a great script or a performance that touches audiences, but a creator who collaborates with AI will gain a tremendous competitive edge. This reinforces Chesky’s point: technology is a tool to amplify human capability. The issue isn’t how many tools you own, but whether you can turn them into an extension of your own capabilities. The picture painted by Chesky and other tech leaders is not a scare tactic but an invitation to evolve. The AI era doesn’t negate human value; it eliminates intermediary roles that don’t create direct value. Survival in the AI era favors those who adapt to change rather than the strongest or the smartest. Source: Fortune