Goodbye hierarchy, hello algorithm: the rise of AI-Form organizations

Purpose This study aims to revisit the classical organisational forms of the M-Form and N-Form within the context of artificial intelligence (AI)-driven digital transformation. It introduces a novel and adaptive organisational form: the AI-Form proposed as a distinct structural archetype designed to address the challenges of Industry 4.0. Design/methodology/approach Through an integrative literature review and conceptual synthesis, this paper analyses the intersection of organisational theory and rapidly evolving AI technologies and develops a new typology, the AI-Form organisation. Findings The hierarchical M-Form struggles to adapt to AI-driven disruption and the growing need for responsiveness and distributed intelligence. The N-Form demonstrates agility and knowledge-sharing but lacks coherence and integrative control. The AI-Form is conceptualised as a new archetype that blends coordination with decentralisation, enabling collaborative intelligence between humans and machines. Research limitations/implications As a conceptual study, empirical validation is required through comparative case studies and performance assessments. Practical implications The AI-Form provides leaders and policymakers with a framework to realign organisational structures by integrating agility, algorithmic coordination and machine-enabled intelligence. Social implications Business leaders and policymakers can apply the AI-Form model to realign organisational structures, integrating both agility and machine-enabled intelligence. Originality/value This paper advances organisational theory by conceptualising the AI-Form as a distinct structural logic that transcends traditional human-centred coordination, offering both theoretical innovation and managerial guidance for the AI era.