Generative AI & The Future of Executive Talent | 2025 Insights
Based on HFS Research Horizons Report 2025

Generative AI and the Future of Executive Talent

Key insights for executive recruitment in the evolving landscape of Generative Enterprise Services

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Key Insights for Talent Acquisition

The HFS Research Horizons report reveals critical trends affecting talent requirements and strategic roles in the Generative Enterprise era. Here's what executive recruiters need to know:

AI Skills Gap Crisis

98% of service providers' employees have received formal AI/GenAI training, yet 80% feel it's insufficient—highlighting a critical skills gap in the market.

Executive recruiters must identify candidates with comprehensive AI expertise beyond surface-level training.

Agentic AI Disruption

26% of enterprises expect to adopt AI-led agentic services within the next 18 months, increasing demand for leaders who can manage autonomous AI workforces.

Look for executives who can navigate the transition from human-led to AI-augmented workforces.

Evolving Service Delivery

Service models are shifting from labor arbitrage to technology arbitrage, with "services-as-software" gaining traction.

Executives with experience in platform-led and AI-led service delivery models will be in high demand.

Generative Enterprise Talent Requirements

1 Horizon 1: Digital Disruptors

Technical leaders who drive digital transformation using AI for predictive functional insights.

  • Strong technical implementation skills for GenAI tools
  • Experience taking GenAI use cases to production
  • Technical expertise with third-party GenAI technologies
  • Offshore delivery management capabilities
  • Proven track record of successful GenAI implementations

2 Horizon 2: Enterprise Innovators

Executives who can enable OneOffice transformation by leveraging AI for improved decision-making and stakeholder experience.

  • Experience breaking down data silos across organizations
  • Proven ability to generate net-new value cases with GenAI
  • Skill in managing offshore/nearshore technical and consulting teams
  • Development experience with proprietary AI tools and frameworks
  • Track record of performance-based client relationships

3 Horizon 3: Generative Enterprise Leaders

Top tier executives who can redefine how work gets done using GenAI, driving co-creation with ecosystem partners.

  • Ability to completely redefine work processes using GenAI (30-70% productivity gains)
  • Experience developing value-focused frameworks that deliver GenAI as-a-service
  • Track record of co-creation partnerships with AI technology leaders
  • Strong ethical AI governance expertise
  • Proven ability to drive new business models through ecosystem partnerships

The Generative Enterprise isn't about sprinkling AI onto legacy processes; it's about committing to wholesale transformation—rewriting operating models, reimagining customer experiences, and driving decisions with intelligence at scale.

Phil Fersht

CEO and Chief Analyst, HFS Research

Key AI Market Statistics

142%

Growth in number of AI clients (2023-2024)

220%

Growth in AI service revenue

250%

Growth in AI-trained employees

62%

Growth in AI labs

AI Implementation Challenges

61%

Access to data and maintaining data quality

60%

Regulatory compliance & security risks

39%

Complexity of integration

38%

Skill gaps among employees

Current vs. Future Talent Needs

Current Service Delivery Requirements

Current client needs are primarily met by traditional staff augmentation and technology-enabled services, but the landscape is shifting rapidly.

Staff augmentation 25%
Technology-enabled services 34%
Platform-led services 17%
AI-led agentic services 13%
Service-as-a-software 11%

Future Service Delivery Requirements (18 months)

The shift toward AI-led agentic services will require a new profile of executive talent with different skill sets.

Staff augmentation 30%
Technology-enabled services 21%
Platform-led services 13%
AI-led agentic services 26%
Service-as-a-software 9%

Top Priority Talent Gaps to Address

  • Creative commercial models: Executives who can develop innovative, performance-based compensation models (lowest client satisfaction rating: 7.8/10)
  • IP and R&D development: Leaders with track records in AI intellectual property creation (client satisfaction: 7.9/10)
  • Industry-specific AI offerings: Domain experts who can apply GenAI to specific industries (client satisfaction: 8.3/10)
  • AI-specific partnerships: Executives with established relationships in the AI ecosystem (client satisfaction: 8.3/10)
  • Talent attraction and retention: Leaders who can build and nurture AI talent (client satisfaction: 8.3/10)

Recruitment Implications & Strategies

New Executive Profiles

Look beyond traditional technical and business roles to find talent that can bridge technical capabilities with business transformation.

Horizon 3 leaders will need experience with autonomous agentic AI and new business models—less than 20% of current executives have these skills.

Ecosystem Orchestrators

Prioritize candidates who have demonstrated success in building and managing AI ecosystems with cloud providers, AI specialists, and domain experts.

Capability to foster co-creation and innovation with partners will be a critical differentiator in the Generative Enterprise.

Responsible AI Leaders

Identify executives with strong ethical frameworks who can navigate the complex regulatory landscape of AI while driving innovation.

Experience with AI governance, risk management, and ethical AI frameworks will be essential for leadership roles.