HR Leaders Ramp Up AI Investment as Pressure to Evolve Intensifies

The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consultancy and enterprise digital transformation firm, today announced findings from its 2026 Human Resources Key Issues Study. The research shows that human resources (HR) leaders broadly recognize the need to transform, but execution remains uneven – creating a widening disconnect between strategic priorities and day-to-day activities as workforce demands intensify.

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The 2026 Key Issues Study found that while AI adoption in HR is advancing, organizations are still looking to gain traction in many capabilities. By the close of 2026, AI adoption in HR was projected to reach 47% in shared services and 42% in talent and performance review – demonstrating its role in streamlining transactions, enhancing evaluations, reducing bias and aligning performance with strategic goals. On the other hand, capabilities such as skill definition and strategic workforce planning remain underdeveloped.

The numbers tell a clear story: HR workloads are expected to rise 9% in 2026, yet staffing levels remain flat and operating budgets will edge up just 1%. Despite these constraints, 83% of organizations expect more from HR. A 9% surge in technology investment reflects an intentional pivot – yet without operational model change, technology alone will not deliver the required impact.

From awareness to action: The execution gap

The research surfaces a consistent pattern with strong strategic intent but limited follow-through:

• 84% of HR leaders emphasize flexibility and skills fluidity, yet 61% have not implemented plans to redesign their work models
• 78% acknowledge resilience as critical, but 49% lack a defined resilience strategy
• 81% recognize the value of intelligent technology, yet 59% lack a clear implementation road map – leaving HR focused more on maintaining systems than transforming how work gets done

“Leaders are clear on the priorities – greater flexibility, stronger resilience and smarter use of technology,” said Amanda Newfield, global HR Applied Intelligence program leader at The Hackett Group. “What’s holding many back is the growing gap between aspiration and capability. The organizations that will lead are those willing to reimagine how work gets done, not just adding new tools to legacy processes.”

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