OUR PERSPECTIVES
Introduction
Artificial intelligence has evolved from a theoretical concept into a practical force reshaping the modern workplace. For organizations and HR leaders, this transformation presents both a challenging mandate and a distinct opportunity. As strategic partners in the C-suite, CHROs must guide their organizations through this technological shift, leveraging AI not just for efficiency but to enhance human capital strategy and drive organizational growth. Understanding the trajectory of AI adoption and its tangible effects on HR functions is now essential for business sustainability.
The rapid pace of AI innovation demands that C-suite leaders, particularly CHROs, make timely and informed decisions to align people, processes, and technology. SHRM’s 2026 CHRO Priorities and Perspectives report highlights this, with a vast majority of CHROs — 92% — anticipating that AI will be further integrated into the workforce this year and 87% forecasting greater adoption of AI within HR processes (up from 83% in 2025). Delaying action risks employers falling behind at a time when agility and insight are critical for sustained organizational success.
Recognizing the significance of understanding the landscape of AI in HR functions, SHRM Thought Leadership set out to gain insights from HR professionals on:
- What is the current landscape of AI adoption among HR functions and professionals?
- What are the HR practice areas and workflows most impacted by AI solutions?
- What are the opportunities and gaps for leveraging AI in HR?
- Are policies in place to regulate AI use within workplaces and to comply with local or state laws on AI use in employment?
- What are the potential challenges and barriers to AI integration within HR processes?
To understand the state of AI usage in HR, SHRM surveyed 1,908 HR professionals in December 2025. This report provides comprehensive insights into how HR professionals, their functions, and their organizations are or are not using AI in their work. These insights equip CHROs and other HR executives to benchmark their AI use, navigate the complexities of AI implementation, and harness AI’s full potential for their workforces and their organizations.
AI Use Varies Widely Across Organizations
Adoption of AI technologies across the HR landscape reveals a significant divide between the organizations actively deploying these tools and those without immediate plans to do so. In the sample of 1,908 HR professionals, 39% currently have AI adopted in their HR functions and 7% intend to launch AI in their functions this year. Another 23% have AI launched elsewhere in their organizations, so that a total of 62% are currently using AI somewhere in their organizations. Across the sample, almost a third of respondents (31%) are in organizations without plans to launch AI initiatives.
The distribution of AI use suggests that while AI adoption is gaining traction across organizations, a substantial portion remain cautious, potentially missing out on building competitive advantages.
AI Is in HR, but Not Everywhere
Despite the attention that AI is receiving, less than half of all organizations will use AI in HR in 2026, and its application is concentrated in specific practice areas. HR professionals reported that AI tools and technologies in HR are most common in the practice areas of recruiting (27%), HR technology (21%), learning and development (17%), and employee experience (14%). In contrast, AI is used least often in inclusion and diversity; C-suite and board relations; and ESG, ethics, and compliance (each 2% or less). Overall, while AI is most frequently used in the recruiting practice area, the share of organizations using AI for recruiting is still just half of the 54% of organizations that have not adopted any form of AI in HR and have no plans to do so this year.
The top metrics used for measuring the success of AI investments are enhanced productivity, cost savings, improved decision-making, and employee satisfaction. Only 16% of HR professionals indicated that they utilize their own return on investment metric for assessing success. Surprisingly, over half (56%) said they do not formally measure the success of their AI investments at all. This lack of measurement creates a disconnect between building buy-in to AI usage for strategic improvements and understanding the true performance benefits of AI utilization.
Extra-Large Organizations Are More Likely to Have Implemented AI in Their HR Functions
AI implementation correlates directly to company size, with larger companies leveraging AI more frequently. Most extra-large organizations (60%) have implemented AI tools and technologies in their HR functions, while only 33% of small and 35% of midsize organizations indicated that they have. Across all organization sizes, recruiting was the most common practice area that AI was used in, but results diverged after that. Extra-large organizations were more likely to use AI for the learning and development, talent analytics, and talent management practice areas. Both small and midsize organizations more frequently used AI in performance management as well as C-suite and board relations, and small organizations were also more likely to use AI in organizational design and change management. This trend of extra-large organizations more frequently adopting AI suggests they are looking to the power and speed of AI for automation, analytics, and efficiency to enhance their HR function.
AI Is Used for Process-Driven Tasks Across HR Practice Areas
To gain a precise view of where AI is being used in HR, we assessed 138 use cases across 16 HR practice areas. This granular analysis revealed that real-world AI applications are concentrated in transactional, process-driven tasks, particularly within recruiting. As seen in the data, the 20 most common use cases were found in just six practice areas, with recruiting well ahead of the rest. Generally, most of the real-world applications of AI in HR are to support routine tasks and optimize processes such as resume parsing, interview scheduling, and job ad programming. That said, there are examples of more advanced use cases, including content generation, enhanced decision support, and the delivery of tailored experiences such as AI-generated quizzes and scenarios, candidate-job matching, and personalized learning recommendations.
The practice areas where AI use cases were least adopted include: C-suite and board relations; ESG, ethics, and compliance; future of work; inclusion and diversity; labor and employee relations; and talent management. There is potential for future adoption but no significant traction yet. While HR professionals feel that many AI use cases are somewhat relevant to their organizations, they are mostly unsure about the cost or effort of implementation as well as the possible security concerns for those use cases. Addressing uncertainty and barriers to adoption along with developing a balanced, strategic AI road map will be critical for HR to realize the full business value of AI and drive organizational transformation.
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HR Professionals Regularly Use AI in Their Workflows
AI adoption rates for HR professionals surged in 2024, similar to when their organizations began using AI tools more widely. In organizations that have implemented AI by 2026, HR professionals said they use AI frequently, with 26% using it weekly, 20% daily, and 9% several times a day.
When looking at usage by job level, those in more senior positions adopted AI for work purposes earlier than those in other positions. Larger shares of those in positions at the director level and above began adopting AI use in the workplace in 2023 and 2024, compared to those in individual contributor as well as manager and supervisor positions. By 2025, 73% of those at the HR director level and above had adopted AI, compared to 66% of managers and supervisors and 65% of individual contributors. This data confirms that leadership has acted as the primary change agent for AI adoption, guiding buy-in across organizations as other job levels are catching up.
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AI Improves Work Performance but Offers Little Impact on Career Prospects
AI has significantly enhanced efficiency and creativity, but it has not yet drastically altered job security or career trajectories for most HR professionals. More than two-thirds of respondents reported slight or significant improvements in their creativity (70%), efficiency (87%), and work quality (75%). When it comes to improvements to their decision-making, the results were mixed, with 41% reporting a slight improvement and 50% reporting no improvement. The majority reported that AI use has had no impact on their job security (77%) or career prospects (73%).
Overall, most HR professionals said they feel AI tools and technologies have a high (28%) or medium (46%) impact on their work productivity. Widespread and effective use of AI by HR professionals — across all job levels — translates into greater efficiency, higher work quality, increased creativity, and a stronger competitive position for businesses.
Directors and Above Report AI’s Greater Impact on Creativity
The perceived impact of AI varies significantly by job level, with senior leaders realizing greater benefits in creativity than individual contributors. We looked at differences among job levels of HR professionals when reporting the impact of AI on their work. The results showed that more people at the director level and above (73%) reported improvements than individual contributors (65%) or managers and supervisors (67%). The 8-percentage-point difference in the share of directors and above reporting improved creative impact over individual contributors was significant. This data suggests an opportunity to support HR professionals in individual contributor, manager, and supervisor roles to better integrate AI tools into their daily creative output.
HR Professionals Are Experiencing AI ‘FOMO’
Many HR professionals suffer from a misplaced "fear of missing out" (FOMO) regarding AI adoption, perceiving their organizations as further behind in adoption than reality suggests. Many HR professionals in organizations that have deployed AI said they believe they are well behind the average organization. About one-third said they think that their AI adoption in HR is well behind other organizations’ HR functions (32%) and that their overall organization is also trailing others (33%). Perceptions improve when controls for organizational size (39%) and industry (39%) are added, but not by much.
Because respondents answering this question have already deployed AI, they are actually further along than the 31% of surveyed HR professionals whose organizations have not deployed AI yet. This AI FOMO could be driving a false sense of urgency. Rushing to implement AI to close a perceived gap could prevent a more planned, thoughtful, and strategic approach that is aligned with broader business objectives. Instead of reacting to this fear, leaders must prioritize a deliberate framework that ensures AI integration supports specific operational goals.
Organizations Not Adopting AI May Lack Awareness of Its Potential Advantages
AI adoption remains a divisive topic among HR professionals in organizations that have not implemented AI, with opinions split on whether avoiding it is a prudent strategy or a missed opportunity. Of the 399 HR professionals in our sample whose organizations do not use AI, 35% agreed with their organizations’ position to avoid AI now and in the future. However, 42% were uncertain about the stance and 24% disagreed with it. Among those who disagreed with their organizations’ stance, 22% said they believe their organizations would benefit from adopting AI. Interestingly, even among those who agreed with their organizations’ decision to avoid AI, opinions remain divided: 52% said they believe AI implementation would not be beneficial and 41% remain unsure. Organizations avoiding AI due to knowledge gaps face risks from not positioning themselves for future success.
Organizations avoiding AI often do so due to a knowledge gap regarding its capabilities rather than a confirmed lack of utility. The top reason why organizations do not utilize AI to support any work-related or HR activities is because of a lack of awareness of AI’s capabilities (67%), such as uncertainty about where to start or how it could benefit their organizations. This was the largest barrier by a considerable margin, but it is possibly the easiest to remove with education. The next most selected reasons could all change with time but are difficult to overcome in the short run: technical concerns including fears about transparency and accuracy as well as a lack of available internal data to use (49%); customer preferences such as lacking “the human touch” and negatively impacting employee and applicant interactions (42%); and a lack of resources (38%). These organizations need a stronger case for how AI could be beneficial for their HR functions and strategic outcomes.
AI Is More Likely to Shift Responsibilities and Create New Roles than to Displace Jobs
Contrary to fears of widespread replacement, our findings suggest that AI adoption is driving workforce evolution through the shifting of job responsibilities along with upskilling and reskilling opportunities. AI adoption has led to minimal organization wide impact such as job displacement and the creation of new roles. HR professionals at organizations where AI has been deployed reported that AI implementation has led to slight job displacement (cited by 7%), some new jobs or roles (24%), shifts in workers’ job responsibilities (39%), and frequent upskilling or reskilling opportunities for employees (57%). This dynamic of workforce evolution shows a need for organizations to be adaptable and innovative as AI adoption increases.
HR Is Not Leading AI Rollouts in Organizations
HR functions are rarely the primary drivers of AI implementation, often taking a backseat to IT, legal and compliance, and cross-functional teams (which could include HR team members). HR professionals reported a mix of cross-functional task forces, IT, and legal and compliance functions owning or leading most aspects of AI rollout in their organizations. Upskilling and reskilling the workforce was the only area of AI implementation where HR functions were close to taking the lead (28%), but they fell just behind cross-functional task forces (29%). HR professionals reported that their legal and compliance functions primarily lead AI governance and oversight in their organizations (37%), but they also reported occasional (42%) or frequent (27%) collaborations between their HR and IT functions to help develop or update AI-related guidelines and policies. When looking at overall AI strategy and vision, over half of organizations (52%) said they do not involve their HR function directly or in a collaborative, cross-functional way. Without a stronger HR voice, organizations risk implementing AI solutions that do not fully address workforce needs or talent strategy.
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HR Should Actively Contribute to — Not Lead — AI Rollouts
HR professionals overwhelmingly believe that the HR function’s role in AI implementation should be active contribution rather than sole ownership. Few HR professionals said they believe HR should lead any aspect of AI implementation. The activities with the highest support for HR leadership were managing change and employee adoption of AI as well as training employees to use AI tools, which only found 16% and 15% in favor, respectively. In fact, more HR professionals would rather not be involved at all than lead four of the six activities. The most common belief — across all activities — was that HR’s role should be actively contributing or providing input. However, by not being more actively involved, HR may miss the chance to shape AI initiatives to align with organizational culture, employee experience strategy, and workforce planning.
Half of Organizations Have AI Use Policies for Their Workforces
The governance of AI remains a significant vulnerability for many organizations. About half of organizations that currently use or are about to pilot AI (49%) have policies to regulate AI use among their workforces. Of those that do have policies in place, only a quarter said they feel their policies are clear and future-proof, meaning they are strategically designed to remain effective, relevant, and adaptable over time as needs and technology evolve. However, 54% reported that their policies are too restrictive and specific to currently available AI tools and technologies and 23% reported that their organizations’ policies are too broad. Simply having a policy does not equate to effective governance. Most existing policies suffer from rigidity or are too broad, suggesting that most organizations are struggling to strike the necessary balance between risk mitigation and long-term agility.
Most HR Professionals Are Unaware of Their Local or State AI Regulations
A growing number of state and local governments are enacting AI regulations related to employment, decision-making, and transparency.1 As of February 2026, 19 of the most populous states have enacted AI laws or regulations that pertain to employer or employment AI usage. A surprising 57% of HR professionals who work in those states reported that they are not aware of those policies. Within the 43% who said they are aware of the relevant laws in their states:2
- 12% reported that they have implemented policies and practices to be compliant.
- 12% reported that they have yet to adjust existing policies and practices to be compliant.
- 19% reported that their function or organization has not addressed or adjusted policies and practices to be compliant.
This signals a critical gap between legislative action and corporate readiness. HR leaders must prioritize staying informed on this evolving regulatory landscape to avoid legal pitfalls.
57%
of HR professionals in states with workforce-related AI regulations are not aware of them.
Privacy and Security Risks Are the Biggest Technical Barrier
Privacy and security concerns, along with a skills gap in HR, were the primary technical hurdles limiting the expansion of AI. However, the responses began to diverge from there, with an outdated human resource information system (HRIS), weak integrations, and vendor limitations most frequently being cited. These technical barriers significantly constrain the pace and impact of AI in HR. Addressing these issues is critical for unlocking the full value of AI and improving the effectiveness of the HR function.
HR Customer Preferences Seen as Top Barrier to Full Automation Displacement
Even if technical barriers were removed, the preference for human interaction remains a formidable obstacle to full automation in HR across organizations of all sizes. In a hypothetical scenario where technical barriers to AI implementation no longer exist, 72% of HR professionals said they still believe nontechnical barriers would prevent their HR function from being completely automated. Within that majority, 87% said they believe HR customers’ (including employees, senior leadership, and job applicants) preferences would prevent full automation. Other nontechnical obstacles include legal or regulatory barriers (57%) and cost-effectiveness (35%). These findings align with results reported in SHRM’s Automation, Generative AI, and Job Displacement Risk in HR Employment report. These findings are a clear signal that the human touch is central to how HR engages with applicants, employees, and leadership — and that full automation of the HR function is neither desired nor practical.
Human Intelligence Is Paramount to the Business of HR
What areas of work should be left alone from any AI tool or technology?
“Areas requiring deep human empathy, nuanced judgment, and genuine interpersonal connection. This includes final candidate evaluations, sensitive salary negotiations, delivering critical feedback, and any high-stakes, personal conversations. AI should inform and support these processes but never replace the human discretion and relationship building essential to attracting and securing top talent.”
HR Professional
“Areas involving empathy, crisis support, and trauma-informed client interactions should remain fully human-led. Sensitive personnel decisions and complex ethical judgments also require human discernment rather than automation. While AI can support administrative tasks, relationship building and the core human elements of our mission should be left to people.”
HR Professional
- Quote 1
- Quote 2
Repeatedly in open-ended responses, HR professionals were adamant in noting that AI should support, not replace, human judgment. HR professionals overwhelmingly agreed that human intelligence is irreplaceable in areas requiring empathy, judgment, and complex ethical reasoning. The need for human intelligence was the most frequently cited reason for not implementing AI and the aspect of work that should be excluded from AI adoption. HR professionals mentioned the many areas of HR’s work that require the human touch, because personal connection and relationship building are core to HR’s value. HR is there for employees’ best, worst, and everything-in-between days, and the human element is irreplaceable.
The real power of the human touch is its ability to bring:
- Empathy to handle employee relations, sensitive conversations, and conflict resolution.
- Nuance to make high-stakes decisions that affect people’s livelihoods.
- Authenticity to direct employee engagement for interpersonal interactions such as one-on-one conversations, coaching, and mentoring.
- Sensitivity and security to handle confidential information, particularly health and personally identifiable information.
- Trust and creativity to conduct complex organizational and strategic planning such as shaping organizational culture and values.
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Wanted: AI Tools That Preserve ‘Human Touch’ Elements of Work
HR professionals are seeking AI solutions that automate routine tasks while providing deep insights, allowing them to focus on high-value, human-centric work. HR professionals want three kinds of AI support: workflow utilities, practice-area-specific tools, and insight-driven tools.
Across all job levels, HR professionals want to automate routine, repetitive, and transactional tasks to ease their workflow. This can be accomplished through chatbots to answer common questions, streamlined document and policy management systems, auto-responders, notetakers, and self-service platforms for employees. This AI support can increase HR’s efficiency and productivity and enhance employee experience by reducing the burden of routine tasks.
HR professionals also believe practice-area-specific AI tools can better support their work. These include applicant tracking systems that screen and match candidates, learning management systems that support training content creation, payroll systems that conduct compensation analyses, and talent management systems that produce skills gap analyses. Sophisticated, practice-area-specific AI tools foster operational efficiency and allow for greater focus on complex aspects of work such as decision-making.
The third kind of desired AI support, often coming from senior leaders, is insight-driven AI tools for advanced analytics. These include analytics platforms that use HR metrics, predictive modeling, and workforce planning to produce actionable business intelligence as well as knowledge management systems for talent mapping, succession risk analysis, and the facilitation of knowledge transfer. With AI supporting human intelligence in these aspects of the job, HR professionals can drive strategic efficiency and enhance data-driven decision-making at the organizational level.
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Recommendations and Resources
Based on the findings of this report, we recommend HR leaders take the following strategic actions to guide their organizations in the adoption and governance of AI.
The research revealed a widespread sense of urgency among HR professionals, driven by the perception that they are falling behind their peers. However, this pressure can lead to rushed, disjointed technological investments. We recommend that CHROs champion a more deliberate approach, beginning with a comprehensive audit of current HR processes to identify specific pain points and opportunities where AI can deliver measurable value. Develop a strategic road map that aligns AI initiatives with core business objectives, ensuring technology is adopted to solve specific problems rather than for its own sake. Being proactive mitigates the risks of wasted resources and positions HR as a strategic driver of innovation.
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Webinar: Transforming HR with AI: Practical Use Cases and Strategies
A significant number of organizations either lack formal AI policies or operate with guidelines that are overly restrictive and not built for the future. HR leaders must collaborate with the IT, legal, and compliance functions to establish clear, adaptable governance. This framework should address critical areas such as data privacy, security risks, and responsible use. Instead of creating policies tethered to specific tools, focus on developing principle-based guidelines that can evolve with technology. This proactive stance on governance is essential for mitigating legal risks and building long-term organizational trust.
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AI Policy Framework
Shadow AI Is on the Rise: Why It Matters to HR
The data consistently points to a lack of necessary skills as a primary barrier to AI expansion. HR must lead the charge in closing this gap, starting within its own function. We recommend creating targeted development programs to equip HR professionals with the competencies needed to evaluate, implement, and manage AI technologies effectively. Concurrently, HR should expand its leadership in organizational reskilling initiatives, preparing the entire workforce for shifts in job responsibilities and the creation of new roles driven by AI.
AI in HR: Where to Lean In — and Where to Hold Back
HR Must Build the Workforce of Tomorrow by Upskilling, Reskilling
Webinar: AI-Driven Learning — Transforming Employee Development
The findings indicate ambiguity about HR’s ownership in the AI rollout, with IT and legal often perceived as the primary leaders. To secure HR's strategic position, CHROs must proactively define their functions’ role in the AI life cycle — from objective setting to change management. Establish a cross-functional task force with clear HR representation to oversee AI implementation and governance. This collaborative structure ensures that the human-centric perspective is integrated into every stage of the process, balancing technological efficiency with the critical needs of the workforce.
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CONCLUSION
The integration of AI into HR is no longer a future prospect but a present-day reality, fundamentally altering how organizations manage their most valuable asset: their people. The data demonstrates how AI offers substantial opportunities to elevate the HR function, moving it from a primarily administrative role to a strategic business partner. The data confirms the reality that AI is in HR but not everywhere. It provides a clear trajectory toward broader adoption, with AI-powered tools enhancing productivity, improving the precision of decision-making, and boosting employee experience across critical areas such as recruiting and talent management. This report also shows that while AI can empower HR teams to operate more strategically, the success of AI adoption depends on the stewardship of senior HR leaders who prioritize human intelligence as the foundation of organizational culture and decision-making.
As organizations navigate this transition, HR leaders must address the inherent challenges. A primary concern is ensuring that technology augments, rather than replaces, the essential human element that defines effective HR. The successful implementation of AI hinges on a balanced approach — one that harnesses the efficiency and data-driven power of machines while preserving the empathy, judgment, and connection that only people can provide. Strategic frameworks for AI integration should be grounded in the understanding that technology is a tool — one that enhances, but never replaces, the critical role of people in shaping outcomes and experiences at work.
The imperative for CHROs and senior HR executives is clear: The time has come to move from observation to action. By proactively developing a strategic framework for AI integration, HR leaders can guide their organizations toward a future where technology and humanity converge to create a more efficient, insightful, and engaging workplace. The path forward demands bold action — and thoughtful leadership — to realize the full promise of AI while safeguarding the irreplaceable role of human intelligence in the workplace.
How to cite this report:
Source: The State of AI in HR 2026, SHRM, 2026.
Data and Methodology
The survey was fielded to a sample of HR professionals via SHRM’s Voice of Work Research Panel between Dec. 5 and Dec. 23, 2025. For the purposes of this study, participants had to be currently employed HR professionals. In total, 1,722 HR professionals participated in the survey. Participants represent organizations across multiple types of industries, sectors, sizes, and locations. Data is unweighted. Analyses consisted of descriptives and analysis of variance (ANOVA), where relevant.
Organizations were grouped into four categories based on their number of employees. Small organizations have 2 to 99 employees, midsize organizations have 100 to 499 employees, large organizations have 500 to 4,999 employees, and extra-large organizations have at least 5,000 employees. Some of the data metrics in this brief are discussed by similarities and differences among the organization sizes.
1. Comprehensive tracking of enacted or in-process AI laws in U.S. states and territories can be found on the websites of the National Conference of State Legislatures, the law firm Orrick, and the UC Berkeley Labor Center.
2. At the time of survey administration, the states with local or state laws regulating employment-related AI use were Arkansas, California, Colorado, Georgia, Illinois, Maryland, Nevada, New Jersey, New York, Rhode Island, South Carolina, Tennessee, Texas, Utah, and Virginia. Taft Law