David Peterson reflects on the impact of AI, particularly Claude Code, on management practices. He describes the anxiety that comes from having a powerful AI tool at his disposal, feeling compelled to keep it productive even during downtime. This sense of urgency reveals a shift in the dynamics of work: humans are now the bottleneck in a system where AI operates at lightning speed. Peterson argues that this new reality demands a different approach to management, akin to playing a real-time strategy game, where success hinges on effective resource allocation and strategy. He critiques the current state of business schools, claiming they have lost relevance since their heyday in the mid-20th century when they taught vital frameworks like operations research. He highlights concepts such as Drucker’s “Management by Exception” and Goldratt’s “Theory of Constraints,” which helped leaders manage large organizations effectively. Today, however, with AI agents outperforming human managers, there’s a pressing need for a new breed of business leaders who can manage and orchestrate these autonomous systems rather than simply directing from a distance. Peterson sees a growing management crisis fueled by the rapid advancement of AI. He believes that the cost of executing tasks is plummeting, while the need for effective decision-making has never been greater. Business schools must adapt to this reality by focusing on systems architecture and how to manage complex networks of AI rather than outdated networking skills. He suggests that if academia fails to innovate in this area, the solutions will likely emerge from open-source initiatives rather than traditional education channels.