Most HR organizations are still in early stages of artificial intelligence adoption, with only 11 per cent integrating AI into core processes, according to Avature’s AI Impact Report 2026.
The study of more than 180 HR and talent acquisition professionals found that while 88 per cent of organizations expect to increase AI investment, approximately half (51 per cent) remain in exploratory or piloting phases. Just five per cent are using AI as a strategic advantage.
Skills gaps, trust concerns and legacy systems are limiting AI’s impact across HR functions, despite strong interest in the technology.
Skills shortages top barriers to adoption
A lack of AI expertise emerged as the most significant obstacle to effective adoption. Only nine per cent of respondents reported having strong, organization-wide AI expertise, while 70 per cent said they are still building AI capabilities or have only isolated pockets of talent.
Skills shortages ranked as the top HR challenge, ahead of technology or software limitations. Twenty-eight per cent of HR leaders cited legacy software limitations as a barrier to AI adoption.
Confidence in forecasting future skill needs is also low. Just 11 per cent of HR leaders feel very confident predicting skills needs 12 months out, with confidence falling further over a two-to-five-year horizon.
Trust declines for judgment-based decisions
While HR leaders are comfortable using AI for logistical tasks, trust drops significantly when AI is asked to make judgment-based decisions. Ninety-eight per cent do not completely trust generative AI to make workforce decisions.
More than a quarter (26 per cent) do not trust AI at all for decision-making, while most have only slight or moderate confidence. Sixty-two per cent trust AI to schedule interviews, but only eight per cent trust it to make hiring decisions without human oversight.
Respondents are most comfortable assigning AI repetitive, low-risk tasks such as answering candidate FAQs (70 per cent) and matching candidates to roles (64 per cent).
Entry-level roles face pressure
Seventy-six per cent of respondents concerned about AI’s impact on early-career positions believe it will significantly reduce hiring. However, only 19 per cent expect job losses this year and 27 per cent said it is too soon to tell.
Within HR and talent teams, 35 per cent anticipate slight headcount reductions and 21 per cent remain unsure.
“AI is influencing how organizations think about talent, but the real opportunity is in how it is applied,” said Dimitri Boylan, founder and CEO of Avature. “The next phase depends on HR’s ability to use AI to understand skills, anticipate change and make better workforce decisions.”
Survey details
The report is based on a survey conducted between September and November 2025 with more than 180 HR, talent acquisition and talent technology professionals across industries worldwide. Sixty-one per cent of respondents work at organizations with more than 30,000 employees.
