2026 Benchmarks Report Table of Contents IntroductionSection 1: Why AI & Automation are Critical NowSection 2: The AI & Automation Maturity Model for HRSection 3: About the ReportSection 4: Key Takeaways: AI & Automation Maturity By IndustrySection 5: Key Takeaways: HR’s Stance on AI & AutomationSection 6: Taking ActionSection 7: How Phenom’s AI & Automation Empowers Enterprises Today1261115177184191 Introduction Artificial intelligence (AI) is everywhere. Today, it’s in every headline, product launch, and vendor pitch. Nearlyevery HR technology provider now claims to be “AI-powered.” But claiming AI and delivering measurableoutcomes with AI are not the same thing. The real questions aren’t about who has AI, it’s about who has adopted it, who has it running live in theirworkflows, and who is using it to solve actual business problems. The difference between having AI andapplying AI is the difference between experimentation and impact. Today’s talent challenges demand more than surface-level solutions. Organizations are facing unprecedentedpressures: skills shortages that limit growth, high-volume hiring demands that strain capacity, competitivelabor markets that raise the cost of every open role, and shifting employee expectations that require faster,more personalized experiences. Traditional HR processes, built on manual tasks and disconnected systems,can’t keep pace. Applied AI addresses these challenges directly. It accelerates hiring, strengthens development, and improvesretention by automating repetitive work and adding intelligence to critical decisions. But to realize theseoutcomes, organizations need clarity: where do they stand today, what does maturity look like, and how dothey move forward? This report was created to provide that clarity. It establishes a baseline for AI and automation adoption in HR,defines what good looks like across maturity levels, and offers a roadmap for organizations to identify theircurrent state and establish relevant next steps. Most importantly, it moves the conversation beyond hype andinto measurable progress, because results, not intentions, are what matter. S E C T I O N1 WHY AI & AUTOMATIONARE CRITICAL NOW AI and automation are not abstract technologies. For HR, they serve as practical tools that transform how peopleare hired, developed, and retained. But they are not the same, and understanding the difference is critical tobuilding the right strategy. Automation focuses on execution. It eliminates repetitive, manual tasks like screening, scheduling, or sendingcampaigns by following predefined rules and workflows. It does exactly what it’s told, the same way every time,freeing recruiters and managers from time-consuming processes. AI, on the other hand, adds intelligence. It goes beyond automation by learning from data, understanding skills,predicting fit, matching candidates to roles, personalizing experiences, and generating insights that supportbetter decisions. While automation improves efficiency, AI improves decision-making. Automation handles the “what” and “when” of a task, while AI informs the “who,” “why,” and “how.” Together, theycreate connected, efficient, and scalable talent workflows, where the right people are found faster, employeessee clear paths to growth, and organizations can respond quickly to changing workforce needs. Why Applied AI? Companies will never stop hiring, developing, and retaining talent. But how they hire nurses, develop engineers,and retain retail associates are fundamentally different, and what’s at stake demands a purpose-built approach. For more than a decade, Phenom has built an AI infrastructure designed specifically for HR. It understands theunique needs of industries, departments, and roles. This is AI that knows company DNA, powered by Enginesthat harmonize data and orchestrate workflows, Ontologies that guide every decision with industry-specificintelligence, X AI that creates hyper-personalized experiences, and Agents that work alongside teams withunprecedented speed and precision. This is Applied AI: responsible, enterprise-secure, compliant, and always explainable. It enables organizations toharness people data for strategic decisions, automate workflows across the talent lifecycle, eliminate manualbusywork, predict outcomes with explainable logic, and dominate talent markets with speed and scale. Key Use Cases Understanding where AI and automation is applied brings their differences into sharper focus.Here are a few examples of how AI and automation can help HR: AI USE CASES A N A L Y Z I N Gresumes andprofiles tograde candidate fit G E N E R A T I N G P E R S O N A L I Z I N G I D E N T I F Y I N G M A T C H I N G interview questions, jobdescriptions, and campaigncontent employees to internalopportunities based on skillsand career paths career site experiences basedon behavior and intent workforce skills gaps andrecommending targeteddevelopment plans AUTOMATION USE CASES A U T O M A