Mid-Year Market Pulse: How AI and Strategy Are Rewriting Talent and Growth

2025 has already proven to be a year of accelerated change. From the evolution of talent expectations to the rising influence of AI in strategic decisions, executives are navigating uncharted waters at speed.

As Dave Ruane (Director of Client Solutions, Lion People Global) put it during the Mid-Year Market Pulse Part 2 discussion:

“Budgets are tighter, while demand remains for core roles… companies want a Swiss Army knife hire who can wear multiple hats.”

The conversation, featuring insights from Annette Lawlor (CEO, Lion People Global) and Olga Blasco (M&A Principal Partner, Lion People Global), explored where organizations are focusing resources, how hiring is being reshaped, and the shifting outlook for mergers and acquisitions. Below, we distill the key takeaways for business leaders and founders looking to make sense of this dynamic environment.

The Talent Market: Less Volume, More Strategy  

Hiring is undergoing a major transformation. While fewer roles are open, expectations per hire have never been higher. Annette Lawlor explained:

“There’s this expectation that people are going to be able to do more, to be more productive. The roles we’re seeing people hire for tend to be more strategic and higher up the food chain.”

One result has been the rise of fractional and executive-level positions, particularly CMOs tasked with embedding AI strategies. As Lawlor noted: “With the CMO in particular now, you need to make sure that whoever is in that role has a strategy for AI and can incorporate that.” 

This shift is also fueling a surge in executive search. “The executive search piece… we’ve seen that much more on the rise this year. Less volume, less churn, higher roles, higher up the food chain, and more of a push on executive search,” she added.

Sales talent expectations are evolving, too. In the past, localization veterans were prioritized. Now, organizations are looking at SaaS profiles or candidates with proven technical aptitude. “If not experience with AI, [candidates need] a very strong technical aptitude… to deliver on concrete numbers and have an appetite for learning and transformation.” 

For executives, the message is clear: recruitment is no longer about filling seats. It’s about finding leaders who adapt quickly, align with culture, and bring strategic value from day one.

AI and the Rise of New Roles  

Artificial intelligence is no longer a future consideration, it’s driving immediate change in workforce planning and shaping AI hiring strategies in 2025. As Dave Ruane emphasized: “Quality evaluators, data annotators, prompt engineers, AI linguistic profiles are in demand. Sales talent’s still critical, but now AI literacy is key.”

This is not just about new job titles, it’s about redefining what matters in hiring. “It’s a shift towards skill-first hiring across industries. Skills may be greater than experience. Candidates across the board may need to reskill, upskill – particularly with AI.”

Annette Lawlor reinforced the leadership dimension:

“Retention over volume is definitely the case. Less churn, fewer hires, but companies want people who will stay. Cultural fit is massively important, it’s not just skills.”

For executives, this means that reskilling, adaptability, and cultural alignment are now non-negotiable. Organizations that can combine AI capabilities with strategic leadership hires will be positioned to thrive in a rapidly evolving market.

M&A Outlook: Strategy Meets Adaptability  

In Part One of the Mid-Year Market Pulse, we laid out 4 Tough Truths Every Founder Should Hear about M&A: valuations have reset, EBITDA alone no longer wins deals, revenue growth is harder to sustain, and sector-specific expertise is a must. Those truths still hold.

In Part Two, the discussion turned to how leaders are adapting.

Olga Blasco summarized it best:

“For every cycle in the industry, it’s normally the people who adapt and are self-starters – the ones who learn, embrace, and try things – that thrive at every juncture of iteration change.”

That adaptability is now central to M&A trends in 2025. Valuations remain more conservative than the highs of 2021, and as Dave Ruane warned:

“Passion and hard work doesn’t equal valuation. We see it time and time again.”

Buyers are demanding operational clarity, profitability, and technology fit – not just top-line growth.

Larger players are still active, using acquisitions to fast-track growth. As Olga Blasco noted, building internally would be “too slow and too expensive to meet their strategic goals. That’s why the acquisition can help faster. ” Smaller firms, meanwhile, are exploring “mergers of equals or joint ventures – people joining forces to future-proof their business.” And as Annette Lawlor observed, “There has been a couple of very large strategic acquisitions this year that have set the pace, and we’ve seen acquisition activity picking up.”

Olga Blasco also cautioned about a fifth truth: the speed of AI disruption is compressing deal timelines. “The S-curve is faster than ever,” she said, pointing to the recent TDC–Unbabel acquisition as the opening shot of a new consolidation wave.

For executives, this means competitive advantage can vanish in as little as two years making timing, traction, and resilience more critical than ever.

Implications for Leadership  

One theme cut across both talent and M&A: leadership in 2025 requires a balance of strategic clarity and adaptability. Hiring is becoming more deliberate, investments more scrutinized, and AI is redefining what it means to be “qualified.”

“Driving change, transformation, disruption requires just a tremendous amount of intellectual and emotional energy.”

That energy must be focused not only on growth, but on choosing the right people. As Annette Lawlor stressed: “When you’re making those hires at that level, it’s expensive. There’s the cultural fit, so that’s not to be underestimated. It’s not just looking at the skills the person has, but looking at the cultural fit within the organization.”

For executives, the takeaway is clear: bold bets must be matched with thoughtful execution. Cultural alignment, adaptability, and strategic focus are no longer optional – they are the levers of sustainable growth.

Conclusion: Navigating the Second Half of 2025  

The mid-year market pulse shows that the second half of 2025 will demand agility, foresight, and resilience from leaders. Budgets may remain tight, but opportunities are abundant for those ready to rethink hiring strategies, embrace AI capabilities, and pursue M&A with purpose.

As Olga Blasco emphasized, thriving in cycles of change comes down to adaptability. And Annette Lawlor pointed to the opportunity:

“There’s a great opportunity right now for candidates, if they’re going to upskill, to really accelerate their career.”

For CEOs, founders, and business owners, the path forward is about more than efficiency. It’s about investing in skills, culture, and strategy, and turning the next wave of disruption into a lasting competitive advantage.