From agentic AI to AI-orchestrated organizations: Understanding the next surge in artificial intelligence

Artificial intelligence has progressed through distinct phases, from early automation to generative and agentic systems capable of autonomous goal pursuit. While agentic artificial intelligence represents an important advance, its organizational impact remains constrained by existing coordination structures and governance arrangements. This article argues that the next surge in artificial intelligence will be defined not by increasingly capable agents, but by the institutionalization of artificial intelligence as an organizing layer that orchestrates coordination, embeds governance, and reallocates decision rights across socio-technical systems. Drawing on organization theory, research on algorithmic decision-making, and emerging scholarship on artificial intelligence governance, a conceptual framework is developed for understanding artificial intelligence–orchestrated organizations. Next, outlined are the theoretical foundations of this shift and a preview of its implications for managerial roles, organizational design, and competitive advantage. The article concludes by positioning artificial intelligence orchestration as a central managerial challenge and a critical domain for future research.