Less than one-third of chief information officers view talent acquisition as a growth catalyst, even as 88 per cent of HR leaders say they lead strategic change within their organizations, according to new research from iCIMS.
The talent acquisition software company’s second annual State of the CHRO Report reveals a significant disconnect between HR executives and their IT counterparts at a time when companies are increasing investment in hiring technology and artificial intelligence tools.
The survey, which included responses from 1,000 U.S.-based chief human resource officers and chief people officers, 500 CIOs and 1,000 adults, found that only 27 per cent of CIOs agree that HR leaders are leading strategic transformation in their companies.
This misalignment comes as HR departments ramp up spending on talent acquisition. Seventy-five per cent of HR leaders plan to invest more in talent acquisition this year, while 85 per cent say the technology has become a higher priority than it was two years ago.
Strategic disconnect hampers technology adoption
The gap between HR and IT priorities creates obstacles for companies trying to modernize their hiring processes. Strategic disconnect affects 51 per cent of organizations, while limited budgets and resources impact 48 per cent, according to the survey.
A lack of shared understanding of technology capabilities also affects 48 per cent of companies, the research found.
“People are the heart of business success, and HR must be viewed as a strategic partner essential for connecting talent, technology and business growth,” said Laura Coccaro, chief people officer at iCIMS. “In today’s competitive landscape, where AI and advanced TA technology are essential to attract and retain top talent, HR and IT must have a united front.”
Despite the challenges, 89 per cent of CIOs acknowledge that HR-IT collaboration is essential to attracting top talent.
AI reshapes hiring but creates new challenges
Artificial intelligence is becoming central to talent acquisition strategies, with 60 per cent of HR leaders now using AI across their entire hiring process. The technology helps companies source, screen and hire candidates more efficiently.
CIOs have made automation and AI their top talent acquisition technology priority, with 42 per cent focusing on these tools. Looking ahead, 72 per cent of CIOs plan to implement agentic AI within the next one to three years, while 13 per cent aim to do so within 12 months.
However, AI remains both an opportunity and a challenge for HR leaders. While 22 per cent of CHROs rank AI as their top talent acquisition priority, it also represents one of their biggest concerns.
Job market implications
The research has implications for the job market, where nearly half of adults surveyed say they plan to look for new employment this year. The findings suggest digital skills and AI knowledge will become increasingly important for job seekers.
“AI gives TA a chance to become a more strategic, influential voice within the organization—and that’s exciting,” said Jo-Ann Feely, chief innovation officer at AMS. “But to fully capitalize on this shift, TA leaders need to step into a more influential role, align their goals more closely with business outcomes and make sure they have a seat at the table when AI strategy is on the agenda.”
Strategic recommendations emerge
The report offers guidance for different stakeholders in the hiring process. For HR leaders, it emphasizes the need to strengthen relationships with IT departments and demonstrate measurable business impact.
Only 34 per cent of organizations currently view talent acquisition as a core strategic function, despite 90 per cent of HR leaders anticipating this shift last year.
The research suggests CIOs and HR leaders share more common ground than they realize, with opportunities to develop unified technology strategies that support business growth.
The study included insights from leaders at companies including Konica Minolta, BrightSpring Health Services, Checkr, The Hackett Group, and Lighthouse Research & Advisory.
