• Majority of business leaders say AI is essential, yet 47% admit management isn’t aligned on how to use it in hiring
• 89% of companies underutilize AI in talent acquisition, despite rising expectations and skills shortages
• 70% of HR and business leaders fear AI could threaten job security as automation accelerates

New research from global talent solutions business AMS reveals the workplace is at a crossroads: while business leaders overwhelmingly agree that AI is now essential to staying competitive in the race for talent, nearly half admit that their HR teams and C-suite are not aligned on how AI should actually be used inside their organizations.

The research, commissioned by AMS in partnership with Wakefield Research, surveyed 300 CHROs, C-suite leaders and HR decision-makers and shows widespread optimism about AI’s potential, but also rising tension as the pace of technological change outstrips many companies’ preparedness. Despite strong belief in AI’s strategic importance, 89% of companies say they are not using AI across all major talent acquisition functions, creating a widening gap between AI capabilities and execution.

AI essential, but leaders can’t agree how to use it

The research reveals major divergence across leadership groups:

• 64% of all respondents believe their organization’s talent pool will not remain competitive without AI.
• That jumps to 80% of CHROs, making them the most pro-AI group when it comes to its benefits to the company talent pool.
• Yet 47% of all respondents say their HR teams and C-suite leaders are not aligned with AI’s role in hiring and recruitment.
• At the same time, 71% say their organization should be investing more in AI for talent acquisition.

This disconnect appears to be slowing adoption. While leaders widely recognize AI’s value, most organizations have yet to embed it across hiring strategy, talent analytics, and candidate screening at scale.

“Leaders agree AI will define the next era of talent strategy, but this research makes clear that alignment is lagging behind capabilities,” said Gordon Stuart, CEO of AMS. “Bridging that gap is now a business imperative. Without a coordinated approach between HR and the C-suite, organizations risk falling behind in a competitive talent market where speed, skill visibility, and ethical decision-making will increasingly be shaped by AI.”

A workforce split on AI’s impact

Even as AI accelerates, concerns about its impact are rising:

• 70% of respondents worry that AI will affect job security as more talent acquisition tasks are automated.
• That concern is highest among CHROs (79%), followed by other C-suite leaders (69%).
• In contrast, 53% expect to hire more AI-savvy HR leaders in the next two years to support the transition.

This reflects a shift in the talent landscape, where enthusiasm for AI’s efficiency gains sits alongside concern about workforce disruption. This dynamic will shape leadership decisions for years to come and runs throughout the survey’s findings.

Skills Gap Drives AI Adoption

Across all groups, leaders say talent shortages and productivity demands are pushing AI up the agenda.

• 75% cite skills gaps as a major barrier to winning top talent.
• 67% say efficiency, not cost savings, is the primary driver for using AI in hiring.
• 43% expect most or all talent acquisition processes to be handled primarily by AI by the end of 2026, including 37% who expect human contribution.

However, human judgment still matters, with more than three-quarters of respondents saying they value soft skills more due to rapid developments in AI. This signals that technology is sharpening, not replacing, human judgment.

Ethical Guardrails Becoming Standard Practice

Encouragingly, as AI adoption grows, organizations are not racing ahead without safeguards:

• 88% of companies already have formal ethical AI guidelines, approved by leadership and communicated to talent teams.
• Only 12% lack any guardrails whatsoever.
• 87% believe it is ethical for candidates to use AI to improve their résumés.

This reflects a maturing approach to responsible AI, with CHROs taking a leading role: 93% say their organizations have established ethical AI standards, the highest of any group surveyed.

“As we begin 2026, C-suites and the talent industry are knee-deep in strategizing how their business will be affected by the ever-evolving impact of AI. Our data lays out a blueprint for how leaders are thinking and taking action around talent and AI, which grows workforce productivity and business commerciality. Leaders integrating the ethical use of AI into the talent processes now will outpace their peers as AI fluency and digestible value adds only continues to grow,” said Stuart.

Notes for Editors

About the Study

The AMS Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 300 total decision-makers across the U.S., including 100 CHROs, 100 Other C-Suite Leaders: CEOs, CTOs, CIOs and similar leaders, and 100 HR & Talent Decision-Makers: Manager-level and higher making personnel and hiring decisions at their organization between October 9th and October 28th, 2025, using an email invitation and an online survey.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 5.7 percentage points for the total sample and 9.8 percentage points in each audience (CHROs, Other C-Suite Leaders, HR & Talent DMs) from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About AMS

We are people experts. Our 8,000 colleagues power talent acquisition and consulting strategies that deliver results for leading organizations across 120 countries.

We partner with our clients to help re-define a new era of talent, driven by people, process, data and technology, enabling them to attract and retain the talent they need to achieve their vision.

Our core areas of service: talent acquisition and orchestration; and talent consulting are amplified by digital capability and strategic technology partnerships that span permanent and contingent workforces.

We call this...

People powered partnership

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