As businesses adopt AI en masse, many analysts have wondered what its long-term effects will be on the workforce of tomorrow. With AI changing the nature of work—especially for those who are on the lower rungs of the career ladder—what happens in 15 to 20 years, when people with today’s entry level jobs begin transitioning to leadership? And more urgently, how is AI transforming what today’s senior and mid-level managers will need to know as they look to future C-suite jobs?

Brian Meegan, a partner at M&A law firm Kupfer, has been examining how to keep a sturdy succession path as AI continues to revolutionize today’s workplace. While the days of entry-level employees learning about a company through meticulous, hands-on grunt work may be coming to a close, there are still ways to keep knowledge transfer alive, and give all workers the experience they need. An excerpt from our conversation is later in this newsletter.

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The economic impact of the war in Iran is becoming more clear in terms of actual numbers and trends, and none of it is positive. In just one month, inflation rose by almost a full percentage point, lifted by the largest single-month increase in energy prices in decades. According to the Bureau of Labor Statistics, March’s consumer prices were 3.3% higher than a year ago—and 0.9% higher than in February. The main factor in last month’s higher inflation is the war—annual inflation in February was actually on the decline, based on the core consumption expenditures index.

Consumers are feeling the pain in many ways, with the University of Michigan’s consumer sentiment survey hitting an all-time low of 47.6 in April. And it’s all about the war’s impact on their finances again—respondents said they expect prices to increase 4.8% in the next year, and their assessment of personal finances dropped 11%.

The weekend, with its failed peace talks, attacks on the Pope, and new military blockades, didn’t help much. Wall Street opened down on Monday morning. By midday, the major indexes were fairly flat.

The falling economic indicators could usher in one positive: According to minutes released last week from March’s Federal Reserve Open Market Committee meeting, some members think that the war in Iran may continue to disrupt the economy significantly enough that an interest rate cut could be necessary.

The Trump Administration’s new H-1B visa policies are making things difficult for companies and their employees, writes Forbes senior contributor Stuart Anderson. Employees who have the visas and their family members are encountering many monthslong waits to get their visas stamped in order to return to the United States after traveling abroad. Executives told Anderson this is an especially large problem for visa holders from India—where it is difficult at this point to get an appointment at a U.S. consulate before 2027—as well as China.

These problems are arising from the non-monetary changes the Trump Administration made to the visa process, Anderson writes. All new and renewed visa appointments must be in the applicant’s home country, and there is a new social media vetting process that every applicant must undergo. Compounding the increase in administrative duties for visa issue and renewal, there’s a staffing shortage at most consulates.

The backlog is leaving employees and companies stuck. H-1B employees are deferring personal trips they would like to take to their home countries to visit aging relatives, while some families are separated because of a lack of consular appointments.

ARTIFICIAL INTELLIGENCE

Most companies are slowly moving into their AI transformation era—but they’re definitely on their way. A new study from Forbes Research found that nearly three quarters of executives said their businesses have standard or advanced AI integration. Right now, AI is most commonly used in business areas with strong data pipelines and clear process leverage: 56% use it for decision making in IT infrastructure and tech areas; while 41% use it for general management and operations, as well as data analytics and business intelligence.

Many companies aren’t seeing much ROI from AI initiatives just yet. More than six in 10 are reporting minimal financial gains—while just 7% said they see more than 10% ROI. But executives aren’t discouraged—46% expect to hit this level of ROI in the next two years.

Executives also anticipate big shifts in their workforce—99% say up to half of jobs will change in two years. But they expect that job losses will be minimal: 61% say AI will create more job opportunities, and close to three-quarters say it is important to balance AI’s transformational power with its impact on the workforce.

What Tomorrow’s Leaders Need From Today’s Executives

While AI promises more workplace efficiency—and with some companies already trimming headcount, especially at the entry level—the human aspect of business remains vitally important. As people climb the corporate ladder, they learn from experience, from others, and by watching situations play out. AI can condense that knowledge and experience into a decision-making platform accessible to a worker at any level, but maturity and good judgement are still going to be required skills for tomorrow’s executives.

Brian Meegan, a partner at M&A law firm Kupfer, has been observing how this will play out. I talked to him about how AI is impacting succession both now and in the decades to come. This conversation has been edited for length, clarity and continuity.

What does AI do for mid-career employees and their journey to the top? How do you see it changing their experience and the knowledge they get?

Meegan: They’re the ones that may actually benefit the most from the use of these AI tools. They already have the skill knowledge. They’re more efficient at it these days, but it still takes a certain amount of time, which AI has now collapsed. They’re experienced enough now to recognize some of the more nuanced judgment pieces and where knowledge might lie.

With the access and ability to digest the larger amount of information quickly in very specific scenarios, they’re really well positioned to leverage AI as a wisdom tool or an assistant in doing more complex work without as much support from the top level. They’re at that point where they’re taking responsibility and ownership of larger and larger pieces, but they still need that last piece.

I think AI really helps them gain that through its ability to capture a whole bunch of different data and say, ‘Most times in this situation, X, Y and Z.’ And they know enough to ask the right question—because AI still needs us to ask the really good questions.

Do you see any ways that this technology could one day harm succession?

I feel like it’s that scene in Good Will Hunting where Robin Williams is talking to Matt Damon’s character: If I ask you about this, you can quote all these books, but you don’t know what it smells like in the Sistine Chapel.

In relying on AI right now to provide you with the answers, despite what I’m saying about judgment and wisdom, there’s also a maturation process that AI is not going to change. I was not a highly wise person at 25—as much as I thought I may have been—and at almost 55, I know now there’s still things that I have to learn—and I am far more humble than at 25.

AI has the potential to be an accelerant to that confidence that one might not have the maturity to moderate. Because yes, you will have lots of information, you will have all sorts of analysis, but you still may lack something that only time is going to give you. Maybe it’s as simple as humility, but it’s a factor that has nothing to do with AI.

What advice would you give a CEO who wants to make sure their company can provide what it needs for the leaders of tomorrow?

It is about reimagining what training looks like and focusing on moving from knowledge-based and skills-based to judgment and wisdom. The more people that can adopt that mindset as you go down from the CEO level is the target. That’s where the KPIs need to be reimagined so the pathway really starts to focus.

It’s always been there, but we’ve had time doing basic skills to gain experience. That’s been the proxy for judgment and wisdom. Now we have a different proxy, which is this tool. If we can keep our eyes laser focused on communicating that judgment and experience, we will have an even more productive workforce punching well above their weight.

Alternative investment firm H.I.G. Capital promoted Brian Schwartz to its chief executive officer role, effective April 7. Schwartz joined the firm in 1994 and most recently worked as co-president. He succeeds cofounder Sami Mnaymneh, who will transition to the role of executive chairman.

Consumer packaged goods company Conagra Brands appointed John Brase as its new president and chief executive officer, effective June 1. Brase most recently worked as president and chief operating officer at J.M. Smucker Co., and he will succeed Sean Connolly.

Engineering and professional services firm Michael Baker International promoted Chris Peters as its new CEO, effective April 7. Peters most recently worked as chief operating officer for the company, and he succeeds Brian Lutes.

Jack Dorsey’s viral essay on replacing traditional corporate hierarchy with AI got a lot of attention, and it likely didn’t change much, but some companies have already been experimenting with a similar approach. Here are some tips and experiences from those beginning to make that switch.

“April Theory” is a new social media trend: Using the beginning of spring to reset our lives. Here are some ways you can use this trend to revamp your work style—and maybe shed some stress.

Which company signed two huge deals to provide AI cloud computing infrastructure last week?

See if you got the answer right here.

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