July 22, 2024
Will Artificial Intelligence Change the Executive Search Business?
Artificial intelligence is the most hyped technological advance since the Internet. Everyone is trying to figure out how they can use AI to make their businesses more efficient. That got me thinking about how AI will change executive search.
My conclusion: It won’t, at least not much.
Let me explain. I see AI as a continuation of a process that’s been going on for three decades. Starting with the introduction of the Internet, new technologies have automated more and more routine recruiting tasks.
Most importantly, technology has made identification of prospective candidates a commodity. Building a target list for a search was once a laborious, time-consuming process. Now it can be done in a few hours using tools like LinkedIn. That simple change gutted the low end of the recruiting market.
What about the high end? Executive search consulting remains a thriving industry. Because the value of executive search has always been in consulting, which resists automation, technology has been our friend. It’s made us more efficient, and that means we can deliver results faster for our clients.
Where’s the unique value in executive search? I think it can be boiled down to three areas, none of which can currently be touched by AI:
- Selling Candidates
Most of the best candidates are happily employed. Bringing them to the table requires a compelling presentation of an opportunity and a deep understanding of the client’s business. AI isn’t capable of having those conversations.
- Assessing Candidates
A good executive search consultant is expert at judging “fit.” A deep understanding of the hiring manager’s personality and the client company’s culture enables the consultant to make subtle judgments about who is a great fit and who isn’t. That’s far beyond the capabilities of AI.
- Providing Expert Advice
An executive search consultant is a trusted partner who helps the client identify and solve brewing problems, evaluate the relative strengths of candidates, and manage negotiations. It’s a relationship that simply cannot be replicated with technology.
Will AI ever make a dent in high end professional services like executive search? I don’t think so, at least not in the foreseeable future. If anything, AI will make high touch professional services even more highly differentiated and valued.
Of course, I could be wrong. If the short-term impact of AI is overhyped, it’s long-term effects are likely underappreciated. It will be interesting to see how AI changes our world in the coming decades.
