69. Puranam Panish - Why organisations will need human centric AI to survive

In this episode, i am joined by Professor Phanish Puranam from INSEAD, one of the world’s leading thinkers on strategy and organizational design, and this year’s recipient of the prestigious Oscar Morgenstern Medal from the University of Vienna.Our conversation explores the deep and often hidden ways in which technology and Artificial Intelligence in particular, reshapes organizations—how we work, how we collaborate, and how power is distributed inside organizations. In the first part of the interview, we dive into one of the most fundamental questions in organizational science: centralization versus decentralization. How do technologies, especially communication technologies, shift the balance between empowering workers with autonomy or giving managers unprecedented tools for monitoring and control.In the second half of our discussion, we turn to generative AI and its impact on how employees skills and expertise are developed within organizations. While GenAI promises efficiency and new forms of collaboration, it also carries the risk of “cognitive offloading”—outsourcing thinking to machines in ways that could erode human competence over time. We consider the tension between treating AI as a tool that enhances human capability, like the abacus, versus one that risks hollowing out expertise, like the calculator. And we confront the very important question of what organizations risk if they replace too many workers with AI agents, resulting in a future where every competitor uses the same AI. In such a world, what’s left to distinguish one company from another?Phanish makes a compelling case that companies must continue to invest in human-centric organisations—not only because people bring autonomy, competence, and connection, but also because these qualities will be the true sources of competitive advantage in an AI-saturated marketplace.

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