Artificial Intelligence (AI), Generative AI (ChatGPT) and Automation over the past year have evolved at a rapid pace. To gain a deeper understanding and the future evolution of AI’s role in the executive search process, Clockwork surveyed 179 executive search firms across the globe over a 6 week period at the end of 2023. The survey was structured based upon the 8 Stages of the executive search.

At a high level, when asked “How likely do you feel the following phases of the executive search process are going to change through the use of automation (not specifically, AI)?” respondents said:

• Stage 1: Find Work: 45.3% believe AI and automation will very likely have an impact.
• Stage 2: Win Work: 49.6% believe AI and automation will somewhat likely have an impact.
• Stage 3: Strategy: 31.6% believe AI and automation will not likely have an impact.
• Stage 4: Research: 70.9% believe AI and automation will very likely have an impact.
• Stage 5: Outreach: 47.9% believe AI and automation will very likely have an impact.
• Stage 6: Assessment: 47.0% believe AI and automation will somewhat likely have an impact.
• Stage 7: Decision: 63.3% believe AI and automation will not likely have an impact.
• Stage 8: Close and Grow: 63.3% believe AI and automation will not likely have an impact.

However, despite these high-level perceptions, there arose a difference in opinion when survey respondents considered specific ways AI could support search firms within each stage.

Executive Search Firms Are Interested In AI Managing Pieces Of Each Stage, But Not Replacing The Entire Stage.

Survey results determined that overall, search firms are very interested in AI and automation supporting or managing parts of each of the 8 Stages of the executive search process, but not replacing the entire stage. Metaphorically, we can compare this approach to the concept of a self-driving car. There are certain aspects of driving a car that a driver is willing to hand over control to automation and technology, for example parallel parking or lane-keeping on the highway. On the other hand, there are other aspects of driving a car that require more stringent human intervention, reversing and local driving for example.

Search firms view AI in a very similar light. For example in Stage 5 (Outreach) 52.7% of search firms said they were not interested in AI conducting initial screening calls during outreach, while 34.4% said they were very interested in AI automatically handling the disqualification process (e.g. notifying the candidate). Similarly to the self-driving car analogy, certain parts of the 8 Stages search firms are comfortable with AI, and other parts they strongly oppose.

Search Firms Are Divided When It Comes To Direct AI (Machine) To Human Contact.

Within the survey the concept of direct AI (machine) to human contact is presented several times. Search firms across the board remain relatively divided about if and how AI should support this interaction, with roughly one third of search firms strongly opposing, one third somewhat interested, and one third very interested in using AI in this way. As we work our way through the 8 Stages and enter the stages that require more contact / communication than others, for example Stage 5 (Outreach) and Stage 7 (Decision) we begin to notice a pattern where executive recruiters are willing to let AI directly engage candidates, once a candidate has reached a certain status of their candidacy within the search process.

In Contrast To Initial Belief, There Is Significant Interest, Demand, and Areas For AI To Support Stage 3 (Strategy).

Initially, search firms believed Stage 3 (Strategy) and Stage 7 (Decision) will have little to no impact or involvement from AI and automation. This result is not surprising as setting the search Strategy and helping a client decide on the best candidate are both highly collaborative and consultative parts of the executive search process. However, in deeper questioning, it turns out there is significant demand by search firms that believe AI can support Stage 3 (Strategy). When presented with real-life applications and use cases for setting the search strategy, (beyond the baseline application of using generative AI for writing job descriptions) 80-90% of search firms indicated they were somewhat to very interested in the value that innovation around AI can bring to this stage. Search firms are deeply curious about AI’s ability to produce benchmark profiles, suggest research criteria, recommend compensation ranges, and generate target company lists. 

Search Firms Believe AI Can Significantly Enhance and Supplement Marketing And Business Development.

There is very strong demand from search firms for AI and automation to support Stage 1 (Find Work / Marketing and Business Development) of the search process, with the majority of search firms saying they are very interested in AI’s involvement. Historically, search firms ramp up marketing and business development activities and efforts when search work begins to slow down, when in theory marketing and business development should be continuously working in the background to feed the pipeline. The majority of search firms are very interested in entrusting AI with managing and generating leads in Stage 1 (Find Work) and Stage 2 (Win Work). There is significant demand and opportunity for AI to solve for these skill gaps. With AI managing and contributing value to these earlier business development stages within the search process, search firms of all sizes can keep their pipeline and revenue streams more consistent.

Search Firms Believe Deeper Qualification Is The Next Step For AI Across Many Stages.

There are existing stages that are already heavily supported by AI and automation such as Stage 4 (Research) and Stage 5 (Outreach). Many search firms that currently use and have adopted these early applications of AI in sourcing (recommending keyword search terms) also understand its limitations. However, the majority of search firms are very interested in AI contributing to various stages in a more meaningful way by qualifying candidates on a much deeper level. For example:

• In Stage 4 (Research) 59.8% are very interested in AI automatically generating Talent Pools for Candidates.
• In Stage 5 (Outreach) 62.4% are very interested in AI suggesting any “look-a-like” candidates that may have been missed during research.
• In Stage 6 (Assessment) 40.0% of search firms say they are very interested in AI assessing candidates for leadership and personality traits (such as Myers-Briggs).
• In Stage 7 (Decision) 39.8% of search firms are very interested in AI automatically identifying any ‘gaps’ in info across finalist candidates (e.g. questions asked of some Finalists but not others).

Download and read the full report here "A.I. and Its Impact On Executive Search".