How AI Could Dismantle Traditional Hierarchies, According to Hung Lee

In a recent LinkedIn post, Hung Lee explores the potential impact of Artificial Intelligence (AI) on traditional organizational structures, particularly the long-standing hierarchical pyramid.

Lee begins by questioning the ubiquity and origin of these pyramids, noting their historical prevalence. “We have developed pyramidical hierarchies for 5000 years. Do we know why?” he asks, setting the stage for an examination of their fundamental purpose and eventual obsolescence.

The Foundation of Hierarchies: Dunbar’s Number and Coordination Costs

Hung Lee delves into the underlying principles that have necessitated organizational pyramids. He references Dunbar’s Number, the cognitive limit on the number of stable social relationships an individual can maintain, suggesting it explains why informal coordination has its limits. This, he argues, is why tools like Customer Relationship Management (CRM) and Applicant Tracking Systems (ATS) are essential, as recruitment tasks often exceed this natural human capacity.

Furthermore, Lee highlights the escalating costs associated with managing larger teams. “Coordination costs scale quadratically rather than linearly, so the cost of managing people increases beyond their ROI, UNLESS you develop a bureaucracy to reduce the relationship complexity,” he explains. This leads to the conclusion that bureaucracies, contrary to some perceptions, evolved as a mechanism to manage and reduce complexity by dividing organizations into more manageable units.

“That’s right folks – bureaucracies evolved to REDUCE complexity by breaking down organisations into manageable teams.”

AI’s Role in Deconstructing the Pyramid

The core of Lee’s argument centers on how AI is poised to disrupt these established structures. He posits that AI will not only augment individual capacity but also automate the coordination processes that have historically justified hierarchical management. As Lee puts it, the very reason for the organizational pyramid’s existence is being eroded by technological advancements.

This shift, according to Hung Lee, will be most acutely felt by those in Talent Acquisition (TA) and Human Resources (HR), who are traditionally responsible for maintaining these structures. He frames their future role as:

“TA / HR have to be Project Managers of the Controlled Demolition of the Pyramid, as well as the Architects of the Post-Pyramid future.”

Lee emphasizes that this is not just about adopting new tools, but about a fundamental rethinking of organizational design and the roles within it. He concludes by referencing Ashby as an example of an ATS that is innovating rapidly, integrating AI features like notetakers and fraud detection, suggesting that the technology enabling this transition is already present.

Community and Future Considerations

Beyond the core analysis of AI and organizational structures, Lee briefly touches upon related community news, including discussions on AI agents in recruitment advertising and upcoming industry awards. This broader context underscores the dynamic and rapidly evolving nature of the recruitment landscape.

In essence, Hung Lee’s post serves as a call to action for TA and HR professionals, urging them to anticipate and manage the significant organizational changes driven by AI, moving from defenders of the old pyramid to architects of a new, potentially flatter, future.