The Real AI Bottleneck? Middle Management

Last week, I attended the EY Strategic Growth Forum in Palm Springs, California, a global convening of top entrepreneurs, private equity leaders, and capital markets thinkers shaping the future of business.
Between sessions on what it takes to scale, invest, and lead in an unpredictable economy, one conversation stuck with me: a workforce transformation panel featuring leaders from EY, Invisible Technologies, and Broadstaff.
One of the most honest, eye-opening moments came during a panel on AI and workforce transformation.
What stood out most wasn’t the tech. It was the tension.
Matt Fitzpatrick, CEO of Invisible Technologies, said it plainly:
“Only 5% of AI models ever make it to production.”
He was citing research from MIT’s NANDA Initiative. But the stat isn’t the story. The reason behind it is.
Executives are under pressure to show ROI on AI now. But many quietly admit they’re flying blind. Data isn’t ready. People are nervous. And the middle managers? Frozen. Not resisting...just stuck.
It’s not the technology that’s slowing us down.
It’s the culture.
Especially the culture in the middle. The manager layer, where permission, safety, and behavior modeling either enable AI adoption… or freeze it entirely.
As we say at home:
“El que no avanza, retrocede.”
He who doesn’t move forward falls behind.
To unfreeze the frozen middle, we need to give managers metrics that reward AI adoption, not just results.

THIS WEEK’S INSIGHTS:
Here’s what else emerged from the discussion and what it means for you.
-
AI won’t succeed if your managers don’t model change.
-
Employees tie effort to value. AI threatens that belief.
-
Your culture is more frozen than your tech.
TRENDS
- Enterprise AI stalls at the start
Matt Fitzpatrick noted that only around 5% of AI models make it to production. This finding aligns with research from MIT’s NANDA Initiative, as reported in TechRadar. Many companies approach AI like a plug-and-play software solution. However, real outcomes come from process redesign, leadership alignment, and thoughtful integration. - Middle managers are the hidden blockers
Tracy Gusher, EY America's AI and Data Leader, explained that while junior staff are eager to experiment with AI and senior executives are open to it, the middle layers of management often delay progress. This happens due to fear, lack of clarity, and misaligned performance expectations. - Skills are outpacing degrees in AI readiness
Ginny Carlier, EY America’s Vice Chair of Talent, shared that EY is expanding its hiring pipeline beyond traditional four-year graduates to include high school and two-year degree holders. Why? Their internal skills assessments show that these candidates often match or exceed traditional applicants in learning and applying AI tools deeply, not just for surface-level automation but for meaningful reinvention of how work gets done. - The skilled trades are booming, and AI is making them sexier.
Even traditionally overlooked sectors like the trades are being reinvented in the AI era. As Carrie Charles, CEO of Broadstaff, noted, “You can’t get a robot to splice fiber with the precision of human fingers.” That’s why tradespeople working in data infrastructure are not just protected, they’re thriving. Some electricians and fiber techs are now earning up to $300,000 a year. Unlike white-collar roles that are increasingly AI-assisted or automatable, trades work remains hands-on and essential.
3 MYTHS TO REFRAME
Myth #1: “AI will transform our workforce automatically.”
Why we believe it: Buying tools feels like progress. Leaders assume deployment equals impact.
Reframe: AI only delivers results when paired with process redesign, trust-building, and cultural safety.
Try This: Add metrics to manager scorecards that reward AI experimentation, peer learning, and transparency, not just output.
Myth #2: “People resist AI because they fear being replaced.”
Why we believe it: Headlines about layoffs feed the fear, but the root issue is often more personal.
Reframe: Many employees fear an identity shift. If effort is no longer visible, they question their value.
Try This: In your next team meeting, ask: “What task would you gladly delegate to AI? And how would you use that reclaimed time to create value?”
Myth #3: “If AI adoption stalls, it’s a technology problem.”
Why we believe it: Tech blockers are easier to name and fix than cultural ones.
Reframe: AI fails not because of tools but because of trust. Culture, especially at the middle manager level, is the fundamental constraint.
Try This: Add AI enablement and coaching behaviors to manager performance reviews. Measure not just usage, but how managers model and encourage AI fluency on their teams.
Bonus Insight: In a recent EY survey, 63% of employees said they are uncomfortable managing AI agents. That’s not a technology issue; it’s a trust-and-training issue that leaders must address.
TOOLS
Whether you're testing tools personally or proposing a pilot at work, here are three ways to build AI fluency, plus prompts you can use safely even in restricted environments.
Gamma – Turn documents or meeting notes into sleek visual presentations.
Prompt to try: “Turn this planning doc into a 5-slide visual briefing with one recommendation per slide.”
POWER TIP: Use Gamma to transform routine updates into persuasive story-driven presentations.
Instruct – Build and maintain SOPs with AI that observes, documents, and updates processes as you work.
Prompt to try: “Observe this recurring onboarding process and auto-generate an SOP with screenshots, steps, and links.”
POWER TIP: Perfect for managers training new hires or redesigning workflows with AI.
Microsoft Copilot (Word, Excel, or Teams) – For teams using Microsoft 365, Copilot offers real-time assistance with writing, analysis, and summarization.
Prompt to try: “List 3 low-effort, high-impact tasks in our workflow where Copilot could reduce manual work. Suggest metrics to track impact.”
POWER TIP: Ask Copilot to simulate a team brainstorm or role-play a skeptical stakeholder conversation.
Restricted access? Try these prompts in any approved tool:
-
“What are three repetitive tasks in [my team or department] that consume time but add low strategic value? How might AI assist with each?”
-
“Act as an operations coach. Help me outline a 30-minute team session to explore how AI could improve one of our core workflows.”

TRY IT THIS WEEK (Micro-Actions)
-
Identify one area in your team where AI feels risky or unclear.
-
Add a goal to your manager’s scorecard that encourages responsible AI exploration.
-
Schedule a 30-minute “AI wins and experiments” team conversation. Focus on progress, not perfection.
- Reflect on this: What human judgment, dexterity, or nuance still matters in your operations even as AI scales?

What’s one leadership behavior you can model this week to unfreeze your AI strategy?
Closing Thought
Your systems might be ready. Your people may be willing.
But if your middle managers stay stuck, transformation will too.
This isn't just about AI readiness...it’s about cultural readiness.
And that starts with leadership at every level.
Hasta la próxima, Abrazos!

When You're Ready...
Here’s how I can help you and your organization take your leadership and professional growth to the next level:
Speaking: I deliver engaging, high-impact keynotes and workshops on AI-driven leadership, personal branding, career advancement, and transformation. Whether it's a corporate event, leadership summit, or industry conference, I bring practical insights and strategies that empower professionals to thrive in today's rapidly evolving world.
Learning & Development Consulting: I partner with organizations to design and implement learning experiences that drive real impact. From AI-powered career development programs to leadership training tailored for their talent, I help companies advance their workforce and create growth opportunities for high-potential professionals.

How did you like today's newsletter?
Your opinion matters!
🔥 Loved it! It was insightful.
🤔 Decent read, but could be better.
😐 Meh, it didn't resonate with me this time.
