Canadian IT consulting firm CGI Inc. has appointed a new chief executive officer following a dramatic decline in its share price, which fell approximately 40 percent over the past year largely due to investor concerns about disruption from artificial intelligence startups such as Anthropic PBC.
Leadership Change Amid AI Disruption
François Boulanger is retiring after serving as CEO for less than three years. He has been succeeded by President Tim Hurlebaus, who previously oversaw the company's operations across the United States, the United Kingdom, and Australia. The leadership transition took effect on Tuesday.
Hurlebaus began his career at Montreal-based CGI as a developer and consultant, accumulating more than 35 years of experience in IT consulting, according to a company statement announcing the appointment.
Market Reaction and Analyst Perspectives
Many investors view recent advancements in AI as a significant threat to the business models of technology consulting firms like CGI and Accenture PLC. During a conference call on April 29, Boulanger attempted to counter negative sentiment by outlining the firm's AI strategy and explaining how CGI can help embed AI into the organizations it serves.
“Standalone AI tools are not a substitute for enterprise IT. They accelerate tasks and processes but don’t solve integration at scale,” he told analysts. Despite these efforts, the stock fell 11 percent that day, marking its largest single-day decline since 2022.
National Bank of Canada analyst Richard Tse noted in a client report that the leadership change indicates the board “is looking to reset the narrative around growth, acquisitions, and AI with new leadership.”
New CEO's Background and Vision
Julie Godin, CGI’s executive chair, expressed confidence in the new CEO. “Tim has the leadership track record as well as the combination of industry knowledge and technology expertise in client delivery that will guide CGI’s growth in this AI-first era,” she said in the statement.
Hurlebaus's extensive experience within CGI and his deep understanding of IT consulting are expected to help the company navigate the challenges posed by AI disruption and reposition itself for future growth.
