Down arrow button icon

With this move, the 12 years he spent in the corner office seemed like an eternity to the 58-year-old Microsoft CEO. Fortune 500 standards, suggesting that mastery of AI is non-negotiable. During Nadella’s tenure Running extremely successfullythe stock price rose 11 times, and Microsoft joined the club of extremely small companies with a valuation of more than $3 trillion. But he won’t remain relevant or effective — and, for that matter, his Peers in any industry.

That new reality is taking shape as several of Silicon Valley’s best-known CEOs extend their tenure into their second decade. Among them is 53-year-old Sundar Pichai (10 years in service) Googlesix companies (its recently formed parent company Alphabet), and Apple 65 Tim Cook (14 years as CEO). It is becoming increasingly clear that artificial intelligence will play an important role during the tenure of these CEOs.

But elsewhere in the tech world, and across Fortune 500 companies, such long tenures may become increasingly rare — at least during the first wave of the artificial intelligence boom. In fact, this number has already begun to decrease. The average global CEO tenure has fallen to 7.2 years, down from a high of 8.4 years set in 2021 and 2023. According to leadership consulting firm Russell Reynolds. (Tech CEO tenure is roughly in line with the cross-industry average.) And that number will likely continue to decline in a few years. The company speculates that this is because boards are closely monitoring CEO effectiveness and whether they are responding to change with precision and adaptability, and AI is bringing these considerations to the fore. If performance lags, these boards will act more quickly.

In addition to generating more churn, broader adoption of AI may also change the demographics of the CEO talent pool. Industry observers expect The next wave of CEOs will be youngeras boards are looking for AI-savvy leaders. As AI creates an even faster pace of change within companies, CEOs may also need young people — or at least younger people — to help stave off burnout.

“Between the compression of the disruption cycle and the inherent risks, what boards expect from a CEO is that you have to be an AI native,” said Chad Hesters, CEO of executive search firm Boyden. “You have to understand these things, and you have to understand that this is not a gradual transition.”

It’s certainly no coincidence that longevity and AI success go hand in hand among big tech companies. Nadella, who comes from a product background, is blazing a trail to show other longtime CEOs how to recognize and respond to the rise of artificial intelligence: Microsoft’s early investment in OpenAI and the integration of ChatGPT into its Azure cloud business have been hallmarks of his tenure.

At the same time, Pichai transformed Google from a Laggards in the field of generative AI pose a major threat to ChatGPTOpenAI CEO Sam Altman himself admitted. Pichai committed the company to an “AI first” strategy that puts machine learning at the center of Google’s products, research and infrastructure and ensures that AI is never ignored.

As for applemany critics say that under Cook, it has Falling behind in the AI ​​race. Several senior leaders left the company in the fourth quarter of 2025, and there was speculation that Cook may be preparing to resign. (Apple declined to comment on reports of this speculation.)

short-sighted

The rise of artificial intelligence coincides with the shortening of CEO tenure, and leaders are scrambling to adapt.

Although they are elder statesmen by relatively young technology standards, Nadella and Pichai have figured out how to navigate technology that is changing the way business is done. It’s not about pure AI skills that computer scientists may have, but about AI savvy and understanding how AI can help them and the companies they lead compete.

After all, the job of a tech CEO almost never focuses on the coding and technical details of AI or any other technology, but rather on the big picture and designing and implementing strategies. This work also requires an experienced perspective to better understand the nuances of the changes that AI may bring to other elements of the enterprise, such as data privacy and security.

Still, CEOs’ urgent need for AI-oriented sensibility isn’t limited to tech companies. Virtually every industry will be transformed by artificial intelligence. In retail, AI will fundamentally change business pillars such as customer surveying and inventory management, while airlines will use it to perform critical tasks such as optimizing flight rescheduling in the event of a severe snowstorm or predicting aircraft part failure.

when Walmart and Target Two retailers recently appointed new chief executives, John Furner and Michael Fiddelke, both touting their ease with using artificial intelligence, a technology that is already changing the way customers shop. (Walmart recently moved its stock listing from the New York Stock Exchange to Nasdaqso that its technical focus is clear. ) In aviation, Delta’s Ed Bastian launched a generative AI travel assistant earlier this year, while United’s Scott Kirby June claimed that his airline is “probably doing more with artificial intelligence than anyone else.”

Companies certainly believe investors care: A December FactSet report found that the word “artificial intelligence” was cited in 306 earnings calls by S&P 500 companies during the most recent quarterly earnings season, well above the five-year average of 136.

That said, CEOs in older tech and traditional industries don’t necessarily need to worry if they lack the time or ability to become AI insiders. Jason Baumgarten, a partner at leadership consulting firm Spencer Stuart, said they can survive and even thrive in the AI ​​wave as long as they demonstrate intellectual curiosity and adaptability. He helps train CEOs and advises boards of directors.

“What we’re seeing generally is a desire among CEOs to have more of a beginner’s mindset and adaptability, rather than strictly resisting ‘the way it used to be,'” Baumgarten said.

More than ever, CEOs need to think ahead about the long-term needs of their industry and customers. “You can’t just do it in a ‘CEO’ way and then delegate it,” said Fawad Bajwa, global AI, analytics and data practice leader at Russell Reynolds. “You need to understand what that means, including the possibilities, the constraints, and the potential risks.”

Echoing the bubble of the 1990s, when it was understood that the Internet would dramatically change life but not quite how or how quickly, near-term expectations may exceed the reality of what artificial intelligence will eventually bring. Of course, the stock market has been rocky lately as investors try to figure out whether companies are spending too much on artificial intelligence in the short term.

CEOs must therefore be wary of getting carried away by the hype and bet on initiatives whose utility is relatively unclear. “You’ll be responsible for achieving ROI,” Boyden’s Hesters said.

So far, that has proven difficult: In fact, figuring out where AI can have an impact has become increasingly complex, which has helped drive a recent increase in the number of companies opting for co-CEO arrangements, said Christine Barton, a managing director and senior partner at the firm. Boston Consulting Group He leads the North America CEO Advisory practice. “It’s a very difficult skill set for a person to have,” Barton said. “Even if individuals have mastered the ability to blend these skills, can they really optimize these disparate parts of the brain?” In a related development, more and more companies are giving their chief technology officers and chief information officers a more central role in shaping overall corporate strategy alongside other executives.

It’s not just Fortune 500 CEOs who must show ease and agility in the face of the AI ​​revolution. Jeff Clavier, co-founder and board member of venture capital firm Uncork Capital, said he asked CEOs of his portfolio startups to imagine what a fully AI version of their companies and industries would look like because he told them that for each of their companies, there were 10 other startups preparing for AI.

“The key characteristic of a CEO in an AI world is the ability to accept that fundamental change will happen faster than the typical innovation curve,” Clavell said. He noted that ChatGPT has changed so much in just over three years since its launch. Every leader must accept the possibility that in the age of artificial intelligence, they may have to completely reinvent their business on a regular basis in the short term—in other words, channel their inner Satya Nadella.

This article appeared in the February/March 2026 issue wealth The headline is “Artificial intelligence is changing the role of the CEO and could lead to a changing of the guard.”