Middle managers are burning out, and AI is making it worse

Investment in leadership development matters, not as a perk, but as infrastructure to keep organisations functioning, writes Christine Khor.

I know what burnout feels like. Only recently, as a CEO, I reached the point where no amount of weekends away or early-morning gym classes could fix the deep exhaustion I was carrying.

At the same time, I was caring for my husband while raising two boys who were making their own way into adulthood. The pressure came from every direction. I kept going, but at a huge cost to my health, my energy, and my sense of balance.

Since then, as an executive coach, I have heard the same words repeated hundreds of times: “It is too much!”, “I’ve had enough”, “I just can’t take this anymore.”

And unfortunately, these words are coming from the people organisations can least afford to lose – their senior executives, their middle managers, and their emerging leaders.

Burnout is not just about being tired or stressed.

The World Health Organisation classifies it as an occupational syndrome that results from chronic workplace stress that has not been successfully managed. It manifests as deep exhaustion, emotional detachment, and a sense of ineffectiveness, and it is reaching crisis levels in Australia.

According to PwC and Findex, 61 per cent of Australian workers report feeling burned out this year. Safe Work Australia found that one in two Australians experienced burnout in the past 12 months.

Psychological injuries now account for almost 10 per cent of serious workplace claims. These are not just individual struggles; they are structural failures that damage productivity, retention, and economic growth.

The pressure cooker of middle management

We tend to imagine burnout as a problem confined to frontline staff or senior executives. But research shows the real epicentre is middle management. This group is squeezed from above and below, held accountable for delivery while also carrying responsibility for staff wellbeing.

The final quarter of the year is when the cracks show most.

Managers are trying to close out projects, hit year-end targets, prepare board reports, and manage performance reviews while balancing the reality of school holidays, family commitments, and financial stress.

It is no wonder so many feel like they are barely holding it together.

Now add artificial intelligence into the mix. Instead of freeing managers from drudgery, the rapid roll-out of AI tools has created new layers of stress.

Managers are suddenly responsible for both people and machines, integrating new platforms, retraining staff, and fielding questions from employees anxious about the impact of AI on their jobs.

They are expected to know enough to guide adoption while still doing their day job. Rather than lightening the load, AI has too often doubled it.

Why wellness perks miss the point

Faced with rising burnout, many organisations are rolling out wellness initiatives. Yoga classes, fruit boxes, meditation apps, or an extra day off here and there are common responses. While well-meaning, these are surface-level solutions that do not address the root cause.

Burnout stems from chronic, systemic stress.

Leaders are drowning in unrealistic workloads, constant digital interruptions, and competing role expectations.

Women leaders are at even greater risk, often carrying invisible responsibilities such as diversity and inclusion work on top of their formal roles. Asking them to stretch further, then offering a fruit basket in return, is not a solution.

If we are serious about tackling burnout, organisations must address it at the structural level. That means creating clearer role boundaries, setting realistic expectations, and recognising that managers cannot be strategist, therapist, and IT trainer all at once.

Spotting the signs and acting

The first step is for individuals and organisations to name burnout for what it is. The signs are often clear: constant exhaustion that does not improve with rest, emotional withdrawal from work or colleagues, and a creeping belief that nothing you do makes a difference.

For managers beginning to feel this way, small steps can help.

Block recovery time into the calendar, delegate tasks that others can handle, and talk openly with a colleague or mentor about the strain.

These actions create breathing space and break the silence that often surrounds burnout.

But prevention requires more than stopgap measures. It demands leaders who know how to set boundaries, delegate effectively, and create psychologically safe teams.

These are not innate traits; they are learned capabilities.

That is why investment in leadership development matters, not as a perk, but as infrastructure to keep organisations functioning.

The final quarter of the year will test every organisation, and employers cannot afford to wait until January to pick up the pieces.

Christine Khor is the CEO, founder, and lead coach at Peeplcoach.