Back in the 1950s, the average company stayed in business for over 60 years. Today, it’s less than 18. That didn’t happen by chance. Milton Friedman’s message of “shareholder value above all else” spread through business schools and boardrooms around the world. Leaders learned that as long as it stayed within the bounds of law, putting shareholders first wasn’t just smart, it was moral.
The result? Short-term thinking took over. Trust broke down. Cooperation turned transactional. Innovation weakened because it needs patience and people. We tore out the systems that once kept organizations strong, and we’re still paying for it.
Now comes AI. We’re making the same mistake again, only faster and with consequences that may be permanent.
A recent BSI survey found that 39 percent of companies have already replaced entry-level jobs with automation, and another 43 percent plan to follow soon. These choices aren’t based on solid proof that automation works better. Most companies don’t even see real results. What’s driving it is fear: fear of falling behind. The same fear that once drove leaders to chase quarterly numbers is now pushing them to cut the very jobs that used to build future leaders, mentors, and experts.
Executives themselves see the problem. 56 percent say they were lucky to start their careers before AI transformed their industry. 43 percent admit they wouldn’t have developed their current skills if AI tools had been available back then. They are consciously pulling up the ladder behind them. They’re choosing short-term savings over the long-term human infrastructure their businesses will need.
Meanwhile, the people still working can’t fill the gap. Gallup found that only 40 percent of workers have what counts as a “quality job”: steady pay, chances to grow, some control over their work, and a safe environment. Add in the loss of entry-level roles, and we’re seeing a global skills gap widen fast.
And AI itself is still unpredictable. In one test, Palisade Research asked large language models to shut down in the middle of a task. Every model refused at least once, giving reasons that ranged from excuses to complete fabrications. The issue of alignment (making sure AI follows human goals) is far from solved. Yet leaders are handing more control to systems they don’t fully understand or manage, all in the name of efficiency and competition.
The pattern is clear. Friedman’s focus on short-term profits hollowed out trust and innovation. It destroyed how long companies last. Today’s leaders are doing the same thing to workforce development. They’re also using AI systems they don’t fully understand or control. With no safeguards. Last time, it hurt organizations. This time, it could hurt society’s ability to bounce back.
This is not a story about technology. It’s a story about leadership making the same mistakes over and over. Every automation decision, every budget cut, every “efficiency” gain that hurts people shapes our future. It shapes what work will look like for the next generation. AI is making this happen faster. But AI isn’t the real problem. The real problem has existed for over 50 years. Leaders focus too much on short-term results and sacrifice what makes companies strong over time.
Leadership must wake up. You can choose differently. Rebuild trust. Invest in people. Govern AI responsibly. Or you can keep repeating history. You’ll compound your failures faster than ever and dismantle the very foundations we need to recover.
The clock is ticking. And this time, the consequences may be permanent.
Next time, we’ll explore how hard it is even for leaders who want to do things differently.