By Deputy Editor, HR Weekly — Published November 3, 2025
The Big Picture
A run of recent industry research points to a critical juncture for HR technology adoption: while organizations are investing heavily in AI, the vast majority have not yet realized significant business value from those tools, and the managers who are supposed to lead the change largely lack the skills to do so.
Gartner research published October 2 identified that CHROs’ top priorities for 2026 center on “realizing AI value and driving performance amid uncertainty.” A separate Gartner survey, released later in October, found 88% of HR leaders say their organizations have not realized significant business value from AI tools — a finding that reinforces the urgency of the 2026 priorities list.
Gartner research released October 8 found that only 8% of HR leaders believe their managers have the skills to effectively use AI — a gap that could undermine the very value realization CHROs are prioritizing.
The AI Value Gap
The 88% figure is startling in its magnitude. Nearly nine out of ten HR leaders surveyed say their organizations have made investments in AI tools but have not seen the expected business outcomes. This is not a technology problem — it is an adoption and integration problem.
Josh Bersin, writing October 8 from SAP Connect, described the gap between AI potential and AI reality in enterprise HCM. SAP announced five new AI agents in its SuccessFactors suite — performance and goals, career development, HR service delivery, payroll, and people intelligence — yet the challenge Bersin and his research team have documented repeatedly is that AI agents in HR only deliver value when they are embedded in complete business processes, not bolted on as standalone features.
“Joule has become the front door to your business,” Bersin wrote of SAP’s AI platform. “It is as easy to use as ChatGPT, supports 40 different AI engines, and is entirely programmable.”
The implication for HR leaders is clear: AI value is not achieved by buying AI tools. It is achieved by redesigning the workflows those tools inhabit.
The Manager Skills Deficit
Perhaps more alarming is the manager skills gap. Only 8% of HR leaders believe their managers can effectively use AI. This is a systemic risk — managers are the frontline of organizational change, and if they cannot leverage AI tools, the adoption chain breaks at the most critical juncture.
This finding aligns with a Gartner study published October 9 that found less than half of employees achieved the change goals set by their organization. When managers cannot translate organizational AI strategy into day-to-day usage by their teams, change goals remain aspirational.
The skills gap also has implications for performance management and talent development — areas that feature prominently in the talent management trends Gartner has flagged for 2026.
Talent Acquisition and Management Trends for 2026
Gartner released two major talent-related trend reports in October:
- Talent Acquisition (October 7): The AI revolution and cost pressures are the two forces driving the top four talent acquisition trends. Hiring teams must balance AI-powered screening and assessment against the need to maintain quality and candidate experience while managing budget constraints.
- Talent Management (October 29): Four trends talent management leaders should prepare for, including the decline in entry-level roles, HR redirecting recruiting capacity toward internal talent, regrettable retention as a productivity barrier, and a rethink of performance management.
What HR Leaders Should Do Now
The combined picture from Gartner’s October reports suggests three immediate actions:
- Audit AI deployments, not just AI purchases. Organizations need to identify which AI tools are actually being used by managers and what outcomes they are producing. The 88% figure should be a wake-up call.
- Invest in manager AI literacy. The 8% skills gap is the single largest lever for increasing AI adoption. Training managers to use AI tools effectively could move the needle faster than any new platform purchase.
- Prepare talent acquisition and talent management systems for 2026. Gartner’s trend reports provide a framework. HR leaders should begin mapping their current tools and processes against the identified trends before year-end.
Sources
- Gartner, “CHROs Top Priorities for 2026 Center Around Realizing AI Value and Driving Performance Amid Uncertainty,” October 2, 2025
- Gartner, “88% of HR Leaders Say Their Organizations Have Not Realized Significant Business Value from AI Tools,” October 28, 2025
- Gartner, “Only 8% of HR Leaders Believe Their Managers Have the Skills to Effectively Use AI,” October 8, 2025
- Gartner, “Less Than Half of Employees Achieved the Change Goals Set by Their Organization,” October 9, 2025
- Josh Bersin, “SAP Jumps Ahead in AI Agents With Joule, HCM Features, and More,” October 8, 2025
- Gartner, “AI Revolution and Cost Pressures Are Two Forces Driving the Top Four Trends for Talent Acquisition in 2026,” October 7, 2025
- Gartner, “Four Trends Talent Management Leaders Should Prepare for in 2026,” October 29, 2025