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How AI Is Reshaping Executive Leadership

AI is not just another technology trend – instead it feels like a fundamental transformation, comparable in scope to the rise of the internet. And like the internet, its implications aren’t limited to a single team or business function. AI is forcing companies to rethink not just how they work, but also who should lead the charge.

In my work at Neon River helping tech companies hire their senior executives, I’ve seen a clear shift: CEOs and boards are no longer just asking if they should be investing in AI, they’re asking who should be responsible for making it happen. The question of ownership is front and centre. And the answer isn’t always obvious.

The Rise of AI-Native Roles

We’re seeing the emergence of dedicated AI leadership positions, titles like Chief AI Officer, VP AI Strategy, or Head of Applied ML. These roles are most common in enterprise software businesses, fintech, and increasingly in consumer platforms with rich data environments. Often, they act as translators between the research-heavy world of machine learning and the real-world needs of product and commercial teams.

There’s a tension here, though. These roles can easily become siloed or unclear in their mandate. Do they report to the CTO? The CPO? The CEO? The best examples I’ve seen give the AI lead a clear scope typically around strategy, talent, and long-term capability building, while ensuring they’re well connected to day-to-day decision making.

Every Role Is Becoming an AI Role

AI isn’t just about having a dedicated leader, it’s reshaping the remit of almost every C-level position.

Product leaders must now design features that integrate generative AI and rethink UX around agentic systems. CTOs face complex build vs. buy decisions around LLMs and infrastructure. AI agents could fundamentally re-shape the nature of software engineering. Marketing leaders are deploying AI to drive personalised content and performance at scale. Even CFOs are exploring AI’s potential to optimise forecasting, budgeting, and operations.

This isn’t a future-state scenario, it’s already happening. The implication is clear: senior leaders across functions don’t necessarily need to be machine learning experts, but they do need to be AI-literate. Increasingly, boards are expecting it.

Who Should Own AI Strategy?

This is where many companies get stuck. They know AI matters but aren’t sure who should take the lead.

In early-stage startups, it’s usually the founder or CEO who drives the AI agenda, often from a product-led perspective. In later-stage or PE-backed businesses, I’ve seen it sit with the CTO, CPO, or a newly appointed Chief AI Officer. What matters most is clarity: someone has to own the roadmap, identify opportunities, and lead hiring efforts.

I’ve also seen strong executive teams treat AI as a horizontal layer, woven through their product, engineering, data, and commercial functions, rather than a standalone initiative. That tends to produce better, more sustainable results.

Where the Best AI Talent Comes From

One of the challenges for any business looking to become “AI-enabled” is the scarcity of senior talent with real, practical experience.

The AI ecosystem is surprisingly fragmented. Some of the most visionary thinkers are still in research labs or working in AI-native startups. Others are buried deep within Big Tech – Meta, Amazon, OpenAI etc. – where they’ve helped scale AI-powered features in production environments. Compensation expectations, IP restrictions, and cultural fit can all be barriers when trying to attract them to more entrepreneurial companies.

Some of the best hires I’ve seen haven’t come from the bleeding edge of research but from the applied layer, people who have led teams that shipped AI-powered products at scale. That’s the often the sweet spot: technically credible, commercially savvy, and organisationally mature.

AI Agents and the Future of Engineering

There’s a bigger disruption on the horizon that few are talking about loudly yet: the potential for AI agents to dramatically change software engineering itself.

AI tools like GitHub Copilot are already making engineers more productive. But if autonomous agents can eventually write, test, and deploy code with limited human input, what does that mean for the CTO’s role?

It could unlock extraordinary leverage. CTOs might shift from overseeing large teams of developers to focusing on architecture, platform strategy, and the orchestration of AI-driven build processes. That would require a new kind of CTO, less focused on headcount, more on systems thinking, tooling, and value delivery.

There’s still a long way to go, but forward-thinking CTOs are already exploring what this might look like, and building orgs that are flexible enough to adapt.

What This Means for Investors

For venture capital and private equity firms, AI presents both a risk and an opportunity.

The risk lies in portfolio companies falling behind. Companies that treat AI as a buzzword rather than a core capability. I’ve seen investors lose patience with leadership teams who are too slow to adapt.

The opportunity lies in backing CEOs who understand how AI can differentiate a product, reduce costs, or open up entirely new markets. From a hiring perspective, this means assessing not just a candidate’s AI credentials, but their ability to build teams and processes that embrace rapid technological change.

The same applies to board composition. I’m seeing growing demand for non-executive directors who bring AI literacy, people who can advise management, challenge assumptions, and help de-risk big bets.

Rethinking the Org Chart

At Neon River, we’re helping clients to navigate this transition, whether that means hiring a Chief AI Officer, or finding a CPO or CTO with the right blend of technical and commercial fluency.

AI won’t just change one function. It’s going to influence how businesses structure teams, define leadership roles, and compete in the market. The best CEOs I work with don’t see AI as a bolt-on. They see it as a thread that runs through everything, from how products are built to how decisions are made.

Leadership matters more than ever. And the companies that get this right will have a clear advantage in the years to come.

 

Neon River is an executive search firm with deep experience of AI-related leadership hires. If we can help you in the future – don’t hesitate to get in touch.

See Also

Our guide to the Top 30 CTOs in Europe

An overview of our work with software companies

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Peter Franks

Peter has spent the last twenty years specializing in recruiting leaders for software, games, internet and broader technology companies. He has deep experience of working with venture capital and private equity backed businesses.