‘Managers Are the Biggest Hurdle to AI Adoption’, Says Okta COO Eric Kelleher
Okta President Eric Kelleher argues that corporate managers are the primary hurdle to AI adoption due to their focus on traditional headcount. Kelleher advocates for a shift to "work planning," where AI agents are integrated as digital colleagues rather than just software tools. This redesign of work processes is essential for achieving long-term AI-driven productivity.
Eric Kelleher, President and Chief Operating Officer of Okta, has identified corporate management structures as the most significant obstacle to effective artificial intelligence (AI) adoption. Speaking at the recent COO Summit, Kelleher argued that while many organisations have successfully begun experimenting with AI tools, they struggle to fundamentally redesign operational workflows to incorporate AI agents alongside human employees.
The Challenge of Traditional Workforce Planning
Kelleher noted that managers have been trained for decades to focus primarily on headcount and payroll, viewing employees as the sole units of production. He contends that this ingrained focus on traditional workforce planning prevents managers from integrating AI agents as genuine members of a team. According to Kelleher, the real challenge lies in convincing leadership to shift their perspective and begin budgeting for both human and digital labour. GitLab Layoffs: Software Giant to Cut 14% of Workforce and Exit 22 Countries in Major Restructuring to Prioritise Artificial Intelligence Initiatives.
Transitioning to ‘Work Planning’
To address this, Kelleher is advocating for a strategic shift from traditional workforce planning to "work planning." This approach requires managers to redesign business processes by distributing specific tasks between human staff and AI agents. By treating AI agents as digital colleagues rather than mere software utilities, companies can better understand how to evolve their organisational charts for a hybrid workforce. Tech Layoffs: Tech Industry Reports Over 1,23,000 Job Cuts in 2026 Due to AI, Says Report.
Redefining the Future of Work
At Okta, Kelleher has already begun implementing these changes by assigning names to AI agents, such as Leo and Sloan, and including them in business reviews alongside human colleagues. He likened the current AI transition to the historical shift from steam power to electricity, suggesting that businesses that treat AI as a mere add-on will fall behind. Kelleher acknowledges that while this shift in organisational design is "really uncomfortable," it is a necessary transformation for companies aiming to achieve measurable productivity gains in an AI-driven future.
(The above story first appeared on LatestLY on Jun 05, 2026 09:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
