Earlier this month, we hosted a private dinner with a small group of board directors and CEOs from across financial services. The conversation was meant to explore the biggest leadership challenges facing the sector in 2026, but it quickly became a conversation about one thing: AI.
What was most revealing was not the enthusiasm, though there was plenty of it, but the candour about what leaders still don’t know. Almost 70% of CEOs now report seeing a return on their AI investments this year, which is more than double the figure from twelve months ago. At the same time, roughly 30% of AI projects in financial services were cancelled over the past year. Those two data points sit uncomfortably side by side, and they were a recurring thread throughout the evening.
Several leaders raised concerns about a widening gap between the US, Europe and the UK when it comes to AI funding and adoption. The scale and speed of experimentation in markets such as China, driven partly by demographic pressures and workforce constraints, is creating a competitive dynamic that Western economies may struggle to match. There was a genuine unease in the room about whether European leadership teams are moving with enough urgency.
Perhaps the most candid moment came when the conversation turned to boards themselves. Many organisations are committing significant capital to AI, yet several leaders openly acknowledged that their own leadership teams do not yet have the expertise to fully evaluate the technology or its implications. Capital, as one guest put it, is moving faster than capability.
The discussion also touched on something less visible but arguably more consequential: what happens to the next generation of leaders if AI automates many of the entry-level tasks that have traditionally built judgement, confidence and professional instinct? Technical skills may become easier to acquire, but human development could become harder.
For those of us in executive search, these questions are not theoretical. AI tools are already reshaping how we research, assess and identify leadership talent. But hiring decisions at the most senior level still depend on human judgement, on the ability to read emotional intelligence, cultural fit and leadership potential in ways that remain beyond the reach of any algorithm. That will evolve, but it has not changed yet.
What was clear from the evening is that AI is no longer a future challenge. It is the present one. Boards face a delicate balance: move too slowly and risk irrelevance, move too quickly and risk investing in technology they do not yet fully understand. The organisations that navigate this well will be the ones whose leadership teams combine conviction with genuine expertise.
If this is something you are thinking about in your own organisation, Michelle Dunne is always open to an informal conversation. You can reach her directly or connect with us through our LinkedIn page.
Michelle Dunne, Partner
Financial Services Practice Lead
LinkedIn
E: mdunne@hiec.com
P: +44 7586 542663