This paper argues that contemporary organizational failure—often attributed to rapid technological change or the disruptive impact of artificial intelligence—is neither sudden nor accidental. Rather, AI functions as a diagnostic instrument that illuminates structural and cultural pathologies that have long existed within modern organizations. The core claim is that many organizations have lost their capacity for collective judgment and will, not because of insufficient intelligence or data, but because of a century-long commitment to measurability as the dominant principle of evaluation. What began as a pragmatic management convenience gradually hardened into an ideology: only what can be measured is considered real, valuable, and legitimate. This ideological shift reshaped meritocracy, narrowed the definition of ability, and systematically devalued relational, perceptual, and meaning-making capacities. The paper traces this evolution through three historical phases: the rise of scientific management, the digitization of organizational control, and the KPI-driven governance of contemporary firms. It then examines how this worldview corrodes organizational culture prior to any visible system failure, replacing judgment with compliance, understanding with performance, and meaning with procedural motion. Central to the argument is the concept of the “device”: a self-reinforcing assemblage of metrics, narratives, and moral pressure that drives organizations into perpetual motion without intention. Within this device, leadership is not merely weakened but structurally rewritten. Through visibility, safety, and narrative loops, organizations systematically select leaders optimized for survival within the device rather than perception beyond it. This process produces what appears as “incompetent leadership,” while simultaneously filtering out individuals capable of judgment, integrity, and responsibility—a phenomenon described here as reverse selection. AI does not disrupt this system; it exposes it. By automating precisely those capacities organizations had already privileged—analysis, explanation, optimization—AI reveals the fragility and incompleteness of a meritocratic order built on measurability alone. This paper does not propose managerial solutions or technological fixes. Instead, it offers a structural diagnosis: organizations cannot recover through system reform alone unless they first confront the deeper question of how collective will is lost, displaced, and potentially reclaimed. The analysis positions organizational failure not as a technical problem, but as a cultural and philosophical one—made visible, but not caused, by AI.
Yuji Marutani (Sun,) studied this question.