The traditional software company organization, shaped like a pyramid, has long defined teams across the technology industry. Large numbers of junior employees at the bottom carried out routine tasks across all functions, mid-level employees managed complexity, and an even smaller number of senior leaders and strategists sat at the top, guiding vision and direction.
However, the rapid adoption of AI is reshaping this structure dramatically, creating what can be visualized as a diamond-shaped organization. In this new organizational shape, fewer junior employees occupy the bottom layers as AI automation takes on more routine and repetitive tasks traditionally reserved for entry-level roles in every function — from Sales and Marketing to Operations, Finance, and Engineering.
At the widest point of this diamond lies a larger group of highly skilled mid-level employees. These professionals now focus on interpreting AI-generated insights, refining automated processes, handling nuanced problem-solving tasks, and ensuring integration and orchestration of complex systems across various departments. Their roles emphasize collaboration, critical thinking, cross-functional expertise, and deeper technical and analytical capabilities.
At the top, senior leaders and strategists still play a pivotal role, but their responsibilities have evolved significantly. Rather than merely overseeing tasks and mentoring juniors, they increasingly shape strategic directions for AI integration, oversee ethical implications of automation, and drive innovation through advanced organizational designs and systems thinking.
Bridging the gap for fresh graduates
In a diamond-shaped organization, fresh graduates face unique challenges due to fewer traditional entry-level tasks. To bridge this gap, structured apprenticeships and externships play an essential role, similar to vocational training programs widely used in the European Union for blue-collar trades. Graduates gain hands-on experience through immersive apprenticeships where they work directly alongside seasoned professionals across various functions, engaging in real-world projects and scenarios. Externships further enhance their learning by placing graduates temporarily within partnering organizations, providing diverse exposure and practical insights.
This combination of structured mentorship, apprenticeships, and externships ensures that new graduates rapidly develop the critical thinking, problem-solving, and functional skills necessary to progress quickly into mid-level roles.
This diamond structure fosters an organization that emphasizes quality over quantity, promoting higher skill levels, stronger decision-making capabilities, and greater adaptability across all departments. For organizational leaders, embracing the diamond-shaped structure means investing in continuous learning, robust mentoring of mid-level employees, and a strategic approach to leveraging AI to enhance — not replace — human creativity and ingenuity.
Ultimately, the diamond-shaped organization represents a powerful evolution, positioning software companies to thrive in an AI-driven future.
