Executive Search 2025: Balancing AI Innovation with a Human Touch

January 10, 2025 – The executive search industry is entering one of its most transformative eras, driven by advancements in artificial intelligence, data analytics, and shifting client needs and expectations. In 2024, firms faced many challenges marked by economic uncertainty, evolving workforce dynamics, and increasing demand for specialized leadership roles.
While internal talent mobility and cautious hiring strategies were dominant themes, the need for resilient, adaptable leaders capable of driving innovation has positioned the industry for a pivotal shift in 2025, recruiters tell Hunt Scanlon Media. Firms are stepping up to meet these demands by integrating cutting-edge technology into their workflows while emphasizing the irreplaceable value of human expertise.
Pivotal Shift
Technology, particularly AI, is reshaping how firms identify, evaluate, and connect with top talent. From automating routine tasks to uncovering deeper insights into market trends and candidate fit, these tools enhance efficiency and precision. However, as industry leaders emphasize, the human element remains central to success in this relationship-driven field. By leveraging AI to scale capabilities without sacrificing the personalized touch, executive search firms are not only redefining their processes but also reimagining their role as strategic talent advisors. As 2025 unfolds, the firms that can balance technological innovation with a deep understanding of leadership and culture will set the standard for the future of the industry.
“2024 was a record year for BrainWorks,” said Andy Miller, president and CEO of BrainWorks. “We exceeded our goals because we implemented high-touch relationships that allowed us to excel. Our clients trust us because we get the job done quickly and efficiently, without compromising quality and results. We expect 2025 to exceed goals and surpass the record year we had in 2024.”
Mr. Miller said that whenever there are advances in technology or AI, often it’s easy to take focus away from for-business practices. “So rather than reshaping, we’re committed to the behaviors that are consistently effective,” he said. “At the end of the day, this is a relationship-based industry and technology can’t replace that, but it can scale it.”
“There are particular tech and data analytics skills that are always in demand,” said Mr. Miller. “In addition, PE sponsors and niche roles across all of our areas of service continue to require focused resources. When talent shortages exist, it is incumbent on search firms, including ours, to reach dramatically deeper into the passive market, expanding reach into networks and making inquiries beyond posts and DM’s.”
“From the ‘Rolodex Age’ to the ‘AI Age,’ technology has always driven executive search forward. Each technological leap, from databases to LinkedIn, has expanded our capabilities, and AI is set to push these boundaries even further,” said Christoph Wollersheim, a consultant and AI expert at Egon Zehnder. “AI is not just a tool; it’s an accelerator, automating routine tasks and analyzing vast amounts of data, which allows consultants to focus on strategic decision-making and building stronger relationships with clients and candidates.”
“AI will reshape executive search, but it won’t replace the human touch essential for building trust and relationships,” Mr. Wollersheim said. “The nuanced understanding and empathy that consultants bring to the table are irreplaceable, ensuring that AI serves as a powerful assistant rather than a replacement. Just as LinkedIn revolutionized candidate identification, AI will redefine how we source and evaluate talent. By leveraging AI, we can uncover hidden gems and match candidates to roles with unprecedented precision, ultimately driving better outcomes for both clients and candidates.”
Facing Economic Uncertainty
The executive search industry, like many sectors, has been shaped by the turbulence and an overwhelming sensation of sheltering in place for much of 2024, according to Kelli Vukelic, CEO of N2Growth. “As organizations faced economic uncertainty, hiring freezes, layoffs, and extended decision-making cycles became the norm, reflecting a hesitance to commit to long-term talent investments amid fluctuating market conditions,” she said. “Organizations prioritized internal talent mobility and succession planning over external hires, while the few open executive roles underwent prolonged and rigorous evaluation processes. This conservative approach underscored a broader shift in how organizations perceive risk in leadership hiring, emphasizing resilience and adaptability as key attributes for leadership.”
“As we approach 2025, the executive search industry is poised for transformation rather than mere recovery,” said Ms. Vukelic. “Organizations are expected to significantly increase external hiring, driven by a pressing need for leadership capable of navigating emerging priorities such as digital transformation, sustainability, organizational innovation, and the evolving dynamics of a global workforce. To thrive in this evolving landscape, executive search firms must redefine their value propositions. Building agile networks of high-potential leaders and integrating data-driven insights into every aspect of their operations are no longer optional—they are strategic imperatives and foundational pillars of every successful search. Moreover, firms that evolve into strategic talent advisors, capable of guiding clients through workforce transformation and leadership realignment, will differentiate themselves in an increasingly competitive market. By embracing these shifts, the industry can transition from a reactive mode to one that anticipates and shapes the future of leadership.”
“I think the most significant impact we’re seeing right now relates to data and client expectations around it,” Ms. Vukelic said. “In their lives outside of work, our clients have access to all sorts of data on-demand. We’re seeing clients begin to highly value—and even expect—on-demand data from their search partners, too. They want to know not just how many people we’ve met or how many people we’ll introduce but also more granular data, and they want it on demand. Our ability to exceed expectations for our clients in the executive search industry will depend on our ability—and willingness —to pull back the curtain and give our clients better, more granular access to the data that helps them feel confident that the leaders we’re putting in front of them are actually best-in-class, not just best-we-know.”
“We’re well-versed in our space in the demographic trends that are impacting the workforce broadly; combined with rapidly evolving technology, the knock-on effect of those trends for us is that there are—and will continue to be in the next three to five years—fewer people who have been there, done that, for the top-level leadership challenges organizations will be facing,” said Brian Greer, senior director at N2Growth. “That shift presents a significant opportunity for us to become not just evaluators of experience, but evaluators of leadership potential: does this leader have the ability to apply their experience in an unrelated space to solve the never-before-seen situation their next business will encounter? I often find myself talking to potential clients about identifying the right leader for the leadership moment they are facing. While most of us know that experience in those leadership moments is transferable across industries and functions, we now have the responsibility to lean in, making that case for our clients.”
New Administration in D.C.
“We’re optimistic about the coming year, but it will certainly be a year of change,” said Doug Trout, CEO of DRiWaterstone. “The new administration in Washington, D.C., will have a considerable effect on the search and recruitment industry on a number of fronts. Talented individuals will leave the federal government and seek private sector and nonprofit leadership positions—we are already hearing from them directly. The non-profit community will lean on private philanthropy like never before with looming federal spending reductions a near certainty. It remains to be seen if philanthropy dollars will be able to offset federal grants that will likely be significantly smaller than we’ve seen over the last four years.”
“We expect the demand for leadership talent in the association, foundation, and non-profit world to remain at full tilt,” Mr. Trout said. “Even with new talent leaving the federal sector to increase the labor supply pool, it will remain crucial to identify leaders with exceptional culture-building expertise, strong analytical skills, executive decision-making capabilities, resourcefulness, and the ability to engage with multiple stakeholder groups. A more relaxed regulatory environment may provide opportunities for growth for both professional and trade associations, potentially resulting in positive outcomes for companies focused in that area.”
Mr. Trout also points to the ongoing integration of AI into business operations, which is already robust, will continue. “And while the expanded use of AI has not led to a reduction in leadership, C-Suite, or other executive positions, it has added an extra layer to the extensive list of job responsibilities for these highly sought-after leaders,” he said. “At DRiWaterstone, we’re working with clients to help them adapt to these and other changes. We’ve expanded our service offerings beyond just executive search and are now able to support our purpose and mission-driven clients across a range of strategic and impact-focused services including team and leadership development, organizational efficiency, strategic and board development, marketing and communications, and more.”
DRiWaterstone is also encouraging clients to better optimize data. “By using industry-tested analysis that is provided to both committees and candidates, we can achieve a more comprehensive understanding of fit, rather than relying as solely on verbal feedback,” Mr. Trout said.
The Human Touch
The AI question can be tricky with executive search, Mr. Trout said. “The human and relational piece of our work will always be front and center—AI cannot replace that,” he said. “All our candidates, profiles, and applications are reviewed and assessed by our team of experts, but we’re using AI to help improve the efficiency of our processes—from developing candidate lists and scheduling interviews, to helping develop inclusive job profiles and identifying language or requirements that may be barriers to inclusion. AI is quickly becoming a valuable part of the way we help our clients find top purpose and mission-driven talent.”
Mr. Trout said that it’s about finding the right balance. “While AI-driven recruitment tools are a game-changer in terms of efficiency, it’s important to maintain the authentic, human element in our work and in our strategy and relationships with clients,” he explained. “What we are seeing is an incredible commitment to AI by many of our clients that includes management of their CRMs, the implementation of high-performing chat bots, creating greater efficiencies for their annual conferences, the management of their external stakeholders, and much more.”
“At Furst Group, a healthcare-focused executive search firm, we are observing a growing demand for executive talent across several key areas of healthcare from payers to providers,” said Rebecca Kapphahn, vice president at the firm. “Areas such as digital health, technology, and innovation require contemporary leaders with demonstrated success in transformation initiatives. As a result, there is intense competition for executives who can bridge clinical operations or payment strategies, for example, with technological innovation.”
“To address these talent shortages, we have continued to expand our search strategies to leverage our deep healthcare networks to identify leaders from adjacent industries who can bring fresh perspectives to healthcare challenges,” Ms. Kapphahn said. “We are also focusing on developing expansive talent pipelines, particularly for roles requiring specialized areas of expertise aimed at supporting digital health and AI implementation.”
While it is important for candidates to have experience in consumer engagement and digital transformation, these leaders must also be adept at navigating and influencing across complex, multi-functional areas within the enterprise to create alignment, Ms. Kapphahn said. “Additionally, we work closely with healthcare organizations to develop more attractive compensation packages and emphasize opportunities for innovation and impact, which are increasingly important to executive leaders,” she said. “The key to addressing these shortages lies in thinking creatively about talent sources while maintaining our deep understanding of healthcare’s unique challenges and requirements.”
Reoccurring Theme
“AI and data analytics will transform the executive search industry in 2025, creating a new balance between technological efficiency and human expertise,” said Jessica Homann, vice president at Furst Group. “While maintaining the essential human element of executive recruitment, technology will enhance key aspects of the search process. AI-powered automation streamlines time-intensive tasks like resume screening, background checks, and initial market outreach, allowing search consultants to focus more on relationship building and in-depth candidate assessment. Real-time communication platforms improve candidate engagement through personalized updates and feedback, maintaining momentum throughout the search process.”
Data analytics has become crucial in developing targeted search strategies, enabling firms to analyze compensation trends and market dynamics more effectively, Ms. Homann noted. “This data-driven approach helps align organizational requirements with market realities, resulting in more precise candidate targeting,” she said. “AI algorithms are also advancing in their ability to assess candidate-role alignment, though the evaluation of leadership compatibility continues to evolve. AI technology shows promise in promoting more varied solutions and outcomes by reducing bias. AI platforms can be trained on diverse datasets to focus on objective qualifications rather than subjective interpretations. However, challenges remain, including the risks of over-reliance on automation, privacy concerns, and data misinterpretation.”
“Success lies in balancing technological efficiency with human expertise,” Ms. Homann said. “While AI and data analytics can enhance many aspects of executive search, they should complement rather than replace the human analysis and relationship-building that experienced search consultants provide.”
“Executive search firms are moving beyond basic adoption of technology to fully integrating AI and data-driven tools into their workflows,” said Matt Levy, partner at NU Advisory Partners. “This evolution focuses on operationalizing these tools to drive efficiency and unlock their transformative potential. What’s clear is that AI and data analytics are streamlining processes like candidate sourcing, market mapping, and predictive analysis to deliver faster, more accurate outcomes.”
“At NU, we’ve embraced this evolution by integrating best-in-class platforms with proprietary homegrown innovations that enhance operational efficiency, enable deeper insights, and maximize the impact of seamlessly integrated tools,” Mr. Levy said. “This commitment to innovation allows our team to focus on what matters most: building meaningful relationships with exceptional talent. Today’s search consultants must adopt a tech-first mindset, using AI as a foundation for tackling complex challenges. Before seeking input from a manager or colleague—or tackling any task really—consider whether AI or other technologies can provide a faster or more effective solution. Success, however, is not just about using technology—it depends on equipping teams with the training and incentives to utilize these tools effectively. Technology should complement, not replace, the essential human aspects of executive search.”
“Our firm met or exceeded our revenue goals in 2024 in all geographies except for North America,” said Natalie Bennett, chief of staff at Kingsley Gate. “The reason for the decline in North America was the continued cautious hiring approaches by companies based on ongoing economic uncertainty in the U.S. We are bullish about 2025, and we are stepping up resources to meet the increasing demand.”
“In our opinion, 2025 is the turning point for the executive search industry as AI will begin to redefine its landscape,” Ms. Bennett said. “Companies that fail to embrace and integrate AI across every step of their processes to deliver tangible benefits to clients risk ceding market share to those who do. Embracing AI is no longer optional; it’s a strategic necessity for staying competitive.”
“The financial services industry is experiencing significant demand for executive talent, alongside a growing need for Chief Digital Officers with expertise in AI across all industries,” said Ms. Bennett. “Search firms are addressing these talent shortages by leveraging their networks, deep industry expertise, and AI-driven tools to place highly qualified candidates in these positions.”
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media