From Generative to Agentic: A New Leadership Paradigm
Generative AI - typified by models like OpenAI’s GPT-4 and Google’s Gemini - has already transformed how leaders access insight, scenario plan, and communicate. These systems can synthesise market intelligence, draft board papers and even simulate stakeholder responses, compressing hours of executive work into minutes. McKinsey’s 2024 report notes that over half of C-level executives in the UK now use gen AI tools weekly, not just for efficiency but as strategic thought partners (McKinsey, 2024).
The next frontier is agentic AI: systems capable of autonomous goal-setting, decision-making, and complex multi-step execution. While still nascent, agentic AI is being piloted by global leaders such as DeepMind (London-based and now part of Google) and in industrial settings by Siemens and Rolls-Royce, where AI agents optimise supply chains and maintenance schedules with minimal human intervention (Siemens AI Labs).
For leaders, this means a shift from directing action to orchestrating ecosystems - where AI is not just a tool, but a semi-autonomous collaborator.
Strategic Talent Implications: Beyond the Basics
This new landscape demands a radical rethink of leadership and talent management, for example:
- Selection and Assessment: Gen AI is already being used by Unilever and HSBC to assess leadership candidates through AI-driven video interviews and psychometric analysis, reducing bias and surfacing non-obvious talent. However, agentic AI will soon require leaders who can manage not just people, but AI agents - evaluating their performance, ethics and alignment with organisational values.
- Onboarding and Development: AstraZeneca has integrated gen AI into onboarding, providing new leaders with dynamic, context-aware knowledge bases and scenario simulations. In private equity, firms are using AI to better understand leadership capability and manage talent across portfolio companies.
- Succession and Workforce Planning: Rolls-Royce leverages AI to model succession scenarios, factoring in not only human capability but also the evolving roles of AI agents in critical functions. This hybrid workforce planning is becoming essential as agentic systems take on more responsibility.
There are numerous sector-specific examples as well:
- Retail: The John Lewis Partnership has piloted gen AI to support board-level scenario planning, helping family and non-family directors navigate succession and governance in an era where digital and human capital are equally important.
- Industrials: Siemens’ use of agentic AI in predictive maintenance and supply chain orchestration is redefining what leadership means in operationally intensive environments.
- Private Equity: Hg Capital, a leading UK tech investor, has embedded AI into its due diligence and post-deal value creation, assessing, for example, the AI maturity of target firms.
- Healthcare and Life Sciences: The NHS AI Lab is pioneering agentic systems for resource allocation and patient flow, requiring clinical and operational leaders to collaborate with AI in real-time decision environments.
