In our previous article, we explored how CEOs are increasingly turning to their C-suite peers to shape company-wide AI strategies. While those leaders bring diverse perspectives, their day-to-day responsibilities often leave little room to manage the practical realities of AI adoption. Nowhere is that tension clearer than in HR, where the promise of AI meets the constraints of budgets, vendor management requirements and workforce readiness.

Barriers to AI use in HR remain steep. Thirty-seven percent of organizations cite lack of knowledge as their top challenge, followed by privacy and data-quality concerns. For large enterprises, cost has now overtaken all other hurdles. Even so, optimism about improved efficiency and data access continues to rise. According to the Sapient Insights Group Annual HR Systems Survey, just over one-third of organizations already use AI within formal HR or workforce processes, a 1.5-times increase between 2023-25, and adoption is projected to climb another 25% by June 2026 as organizations continue expanding both stand-alone and embedded AI use.

Despite this progress, most productivity gains are still happening at the individual level. Eighty-one percent of HR professionals use AI personally to draft policies, summarize data or create presentations, often through tools such as ChatGPT or Microsoft Copilot. Adoption, however, does not always translate into impact. Many organizations are still learning how to scale pilots and measure meaningful results.

There are early signs of progress. Sapient Insights Group data show that user experience and vendor satisfaction ratings for HCM systems rose this year for the first time in several cycles, driven by AI’s ability to improve workflows and surface data at the point of need. Organizations actively using AI in HR also report an average 8% improvement in business, talent and HR outcomes, a trend sustained for two years. While early results center on efficiency and cost savings, the more transformative work begins with value creation—when humans and AI agents work together to redefine what is possible.

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