How does AI change the very nature of how people work together?
This question should be at the heart of your AI strategy, yet it’s rarely the starting point for most transformations. Instead, I see organizations rushing to implement AI tools and invest millions in technology while obsessing over organizational charts, leadership titles, and specific use cases—essentially missing the forest for the trees.
As Keith Ferrazzi, renowned executive coach and bestselling author, recently noted in our conversation on the “Welcome to the Machine” podcast, “AI is going to change the way people work at least as dramatically as the factory or the assembly line.”
Let that sink in for a moment.
The companies that will thrive in this new era aren’t necessarily those with the most advanced AI tools, but those that fundamentally transform how their teams operate in partnership with intelligent systems.
The Problem with Traditional Organizational Structures
Let’s be honest: the organizational chart you’re likely operating under was designed for a world that no longer exists. These hierarchical structures create rigid silos that actively suffocate the free flow of information—the very lifeblood of successful AI implementation.
“Most companies today work in silos,” Ferrazzi points out.
Consider what happens when you attempt an AI-driven supply chain transformation. In traditional organizations, this would be the exclusive domain of your supply chain department. But real transformation requires your sales team for forecasting insights, your finance department for budget implications, your IT organization for technical implementation, and your HR team for workforce planning.
These silos aren’t just inefficient—they’re actively toxic in the AI era, where information needs to flow freely to generate maximum value.
Redefining Teams for the AI Age
You can’t simply layer AI on top of existing organizational structures and expect transformative results. That’s like putting a Ferrari engine in a horse-drawn carriage and wondering why you’re not winning races.
“Team has nothing to do with org charts,” Ferrazzi emphasizes. “That’s the biggest transformation.” In the AI era, your teams should form around key performance indicators and specific business outcomes rather than departmental affiliations.
What does this look like in practice?
Your AI-driven supply chain optimization project might include members from forecasting, sales, finance, IT, and HR—all working together as a cohesive unit focused on a shared goal.
These cross-functional teams break down the silos that have been holding your organization back and create the conditions for AI to deliver exponential rather than incremental value.
As Ferrazzi colorfully puts it: “I would get that group together and I would create an esprit de corps of that group of individuals to go take a damn hill together, to do something that’s never been done, to achieve what’s unachievable, to be one of the best in the industry possible.”
This isn’t just team-building—it’s team reimagining.
Creating New Social Contracts for Teams
Once you’ve assembled the right cross-functional team, you need to establish what Ferrazzi calls a “social contract”—explicit agreements about how team members will work together that fundamentally differ from your organization’s status quo.
“The first thing is: we will never talk behind each other’s back. We will challenge each other openly in the room when it’s risky to do so,” Ferrazzi explains. This type of candid feedback creates psychological safety and allows teams to identify potential issues before they derail your AI initiatives.
But here’s the critical insight: simply stating these values won’t move the needle.
You need to create opportunities for your team members to experience these new behaviors in action. “If I get that group to experience what it’s like to take a risk, challenge each other, live through it, see the value of it… they’re like, ‘damn, that’s a better social contract than the bullshit talking behind each other’s back was.'”
These new social contracts aren’t just nice-to-have cultural artifacts—they’re the operating system that will power your AI transformation. As Ferrazzi succinctly puts it, “Culture is the residue of success.”
By giving your teams the experience of successful collaboration through new practices, you gradually transform your broader organizational culture to one that can truly leverage AI’s potential.
The Future of Work: From Leadership to Teamship
As AI reshapes your organization, roles and responsibilities will evolve dramatically. Many traditional jobs will be eliminated or fundamentally transformed.
But contrary to the doomsday headlines, this doesn’t mean your workforce becomes obsolete—rather, their contributions shift to areas where humans truly excel: creativity, emotional intelligence, and complex problem-solving in partnership with AI.
Your most valuable employees in this new landscape will be those who actively participate in reengineering their own roles, finding new ways to add value alongside AI systems.
Similarly, your most effective leaders will shift from directing work to what Ferrazzi calls “Sherpa-ing”—guiding teams through complex challenges and helping them reach heights of performance previously unimaginable.
“My job as a coach is to keep this team constantly realize what it can do for and with each other,” Ferrazzi explains. “How do you get up the hill? I think of myself, and frankly, I think of in the future, leaders should be Sherpas.”
This shift from traditional leadership to “teamship” creates the conditions for AI success—cross-functional teams organized around outcomes, new social contracts that encourage candid collaboration, and a culture that embraces continuous reinvention.
The organizations that make this transition won’t just survive the AI revolution—they’ll thrive in it, creating unprecedented value for customers, employees, and shareholders alike. The time to start isn’t when AI disruption arrives at your doorstep—it’s now, while you still have the luxury of choice rather than necessity.
As Ferrazzi puts it with characteristic bluntness: “This is a five-year journey where during this next five years, there’s going to be a few people who get out ahead by using this methodology of rethinking leadership through teamship, and then there’s going to be a bunch of litter on the Fortune 500 pavement of those who are struggling to keep up with the disruption that’s happening to them.”
Which side of that divide will your organization be on?
The choice—and the opportunity—is yours.