Results of the February 2026 Mercer QuickPulse® - US AI Survey
Understanding how artificial intelligence (AI) is transforming human resources is essential for businesses aiming to leverage its many advantages. Many HR departments already use AI and machine learning technologies to streamline hiring, reduce unconscious bias, and enhance data analytics. However, HR leaders should also be mindful of the challenges and limitations that come with integrating these technologies into their processes.
This article explores what we learned from just under 450 US companies when we asked them about their current and planned usage of AI in HR management as well as the challenges and barriers they face.
Embracing AI in HR
Mercer’s survey reveals that although many HR leaders are considering using AI, in practice they have been slow to adopt. More than half are exploring how to use AI to help compensation planning, design, and/or management, but only 16% are currently using it. Of those who are, they’re primarily using it for market analysis or benchmarking. Job description writing is another place companies are using AI in HR.
While over seventy percent of respondents said that their leadership team regularly discusses the impact of AI on their business, executives are largely not being rated on internal or external AI goals for incentive plans.
AI’s influence on work
Are companies really replacing employees or jobs with AI? The results of this survey seem to indicate that what we’re seeing in the media might be a bit overblown:
- Thirty-two percent say they are replacing work/tasks with automation
- Only 10% indicate that AI has decreased hiring in the last 12 months due to automation; 11% said they’ve increased hiring due to new technology roles
- Most report no change in entry-level hiring volumes
Challenges to recruit and retain
When it comes to finding and keeping the skills they need, the survey respondents indicated that the AI roles they view as challenging to attract and retain are primarily Artificial Intelligence Leadership and Machine Learning & Deep Learning.
Using AI to your advantage
Revolutionizing recruitment
AI-powered tools have revolutionized recruitment by automating job-posting creation, resume screening, and candidate communication. These systems accelerate hiring by efficiently handling labor-intensive tasks and identifying promising candidates faster.
Moreover, conversational AI platforms like ChatGPT assist HR teams in crafting tailored interview questions, improving the quality of candidate assessments.
Balancing technology with the human touch
While AI offers significant efficiencies, overreliance on automation can diminish the essential human element in HR. Human oversight remains vital to ensure fairness, empathy, and context in decision-making.
For instance, automated systems that make employment decisions without human review can lead to unintended consequences, as seen in past controversies involving algorithmic worker monitoring.
Before adopting AI tools, organizations should consider:
- Limitations of AI: Algorithms may inadvertently exclude qualified candidates or misinterpret data. Continuous evaluation and human judgment are necessary to maintain fairness.
- Data security: Protecting sensitive employee information is critical. Rigorous security measures must be in place to prevent breaches.
- Employee experience: Excessive automation can alienate staff. Providing accessible human support alongside AI tools helps maintain trust and engagement.
Looking ahead: The future of AI in HR
As AI and machine learning evolve, their role in HR will expand, offering new opportunities and challenges. Businesses are navigating issues such as intellectual property concerns with generative AI tools while exploring ways to enhance job descriptions and candidate matching.
To navigate this evolving landscape, leveraging data-driven insights from trusted partners like Mercer can help organizations make informed decisions about integrating AI into their HR strategies.
Contact Mercer at surveys@mercer.com or 866-605-1031 to learn how we can support your HR transformation journey.
About the author
Rebecca Hall, Principal
Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.