Our guest blogger is Andrew Thoseby of 1st Executive Pty Ltd in Melbourne, Australia. 1st Executive is a boutique executive search, executive recruitment, interim executive and advisory firm providing custom designed people solutions for clients across a broad spectrum of industries on a local, regional, national and international basis. The firm’s recruiting activities are focused on executive, professional, technical and managerial placement for its clients. 1st Executive includes a growing interim management service in its business mix and has successfully placed interim CEOs, CFOs, sales and operational executives. Andrew is currently a member of the NPAworldwide Board of Directors.
Much like the arrival of the fax machine or the dawn of LinkedIn, the rise of artificial intelligence (AI) has sparked declarations of doom for the recruitment and executive search industry. And much like every revolution before it, these predictions have been gloriously wrong.
Executive search and recruitment isn’t dying. It’s evolving — and evolving fast, with AI in executive search playing a pivotal role in this transformation.
AI is the Assistant, Not the Adviser
AI has made impressive inroads into our toolkits. In the realm of AI in executive search, Applicant Tracking Systems (ATS) and CRMs now integrate cutting-edge AI to parse résumés, surface hidden candidates, and track engagement. Chatbots handle early candidate queries, predictive analytics assist with shortlist development, and algorithms learn from successful hires to refine future suggestions. Many first interviews can now be conducted using Agentic AI.
But let’s be clear: this is process, not judgement. AI can tell you who ticks the boxes. It can even alert you to evasive answers to questions. However, it can’t tell you who thinks outside these boxes nor how. The ability to identify which CFO can transition into a CEO role in an adjacent industry? That’s still very human, very interpretive, a little intuitive — and very boutique.
Stats that Cut Through the Hype:
- 63% of recruiters report AI improves the hiring process by enhancing screening efficiency (LinkedIn Talent Solutions, 2024).
- AI-powered platforms reduce time-to-hire by up to 30%, yet require human intervention to avoid bias and false positives (SHRM, 2023).
- Despite automation, 74% of hiring managers still say insight into a candidate’s softer traits (leadership, adaptability) is the top reason they rely on search consultants (Deloitte Insights, 2024).
Human Intelligence Still Reigns
The real value in executive search and recruitment always has — and always will — lie in interpretation. Understanding a client’s commercial context, forming an educated view about their culture, both from what is said and what is observed are all human skills. Recognising transferable skills across sectors. Knowing when a candidate has “it”, even if their CV doesn’t spell it out in machine-friendly keywords, and knowing when the CV attributes don’t play out in an interview are all human too.
And let’s not forget: the best executive search consultants are typically the earliest and savviest adopters of technology. Recruiters and Search Consultants are not Luddites but rather pragmatists with pedigree. The internet, online job boards, LinkedIn and more were all supposed to kill the industry. They didn’t and neither will AI.
There is another factor at work here too. Smart CEO’s have always had very clear views about where their working capital should be targeted – on their core business. In-house recruitment teams, graphic designers, advertising teams are diversions. Often driven by an elevated spend one year, accountants will often advocate “in-housing” which may pay briefly in the short term.
However, the on-costs that are there every month, the training demands, the internal distractions, the requirement to invest in technology that is not used every day (and therefore used poorly) are often hidden and unknown costs – then when things get quiet, the layoffs come along, with severance packages and damage to the employment brand that consultants promote. These are followed by “Why did we do this? And whose idea was it?”
Our Global Edge
At 1st Executive, our boutique scale is amplified by the global reach of the NPAworldwide network — 550 independent firms, all led by owner-operators who aren’t just using AI but shaping how it’s best deployed across markets and mandates.
We bring technology and tenacity. AI does the data. We do the discernment.
In Summary
- AI is a remarkable tool for efficiency but not a substitute for executive judgment.
- ATS and CRM systems are evolving with embedded AI — improving workflows, not replacing people.
- Executive search’s value remains: insight, interpretation, and instinct.
As with every technological revolution, the firms who blend smart tech with sharper minds will lead. The rest? Well, they’ll be the ones looking for jobs — probably filtered out by their own AI.