2027+人才战略现状报告+2027+State+of+People+Strategy+Report

SEPTEMBER9TH,2026

7THEDITION©

People

KeyFinding#1

KeyFinding#2

KeyFinding#3

KeyFinding#4

Strategyisthe

Performanceandtecharebusinessimperatives.

AIpullsHRclosertothecenterofthebusiness.

Cultureisn’t

soft,it’syourperformancedifferentiator.

Whenitcomestotech,HRhassomeregrets.

Strategy

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LATTICE.COM/STATE-OF-PEOPLE-STRATEGY/2027

TABLEOFCONTENTS02

06

08

10

17

28

33

34

Introduction

OVERVIEW

HR'smandateisexpandingfasterthanitssupport.

…

………

……………

OVERVIEW

GlobalHRprioritiesareworldsapart.

·

·…

OVERVIEW

Highperformanceisbydesign.

KEYFINDING#1

Performanceandtecharebusinessimperatives.

KEYFINDING#2

AlpullsHRclosertothecenterofthebusiness.

…

KEYFINDING#3

Cultureisn'tsoft,it'syourperformancedifferentiator.

……·

KEYFINDING#4

Whenitcomestotech,HRhassomeregrets.

…

……

…·

Conclusion

AboutLattice

INTRODUCTION03

Thisistheyear

ofrenegotiation.

IfHRwassupposedtogetamomenttocatchitsbreath,itnevercame.Peopleteamsbarelyhadachancetogasp,letalonefilltheirlungs.

Thebusinessdemands,andHRdelivers.Teamsmaybetired,butthe

relentlesschangehassharpenedtheirinstincts,andthey'remoreclear-eyedforwhatliesahead.

HRisreconsideringeverything.

55%ofHRconsidered

leavingtheprofessionthisyear;39%ofthemsayit'sduetofeeling

undervaluedatwork.

47%ofHRsaythey

regretarecenttechpurchase.Thetop

reasons?Functionalityandintegrationissues.

38%ofHRteamssayperformanceistheirtoppriority,while

engagementhitsafive-yearlow.

Buyer'sremorse

loomslarge.

Performancemakes

abigbreak.

In2027,HRisreadytosetitsownterms.Wecan'tsayeverything'sabouttogeteasier.ButtheHRleaderswhotakeaseatatthatfabledtablearemoreknowing—aboutwhattheycandeliver,wheretechnologyhasaplace,andhowtheirvaluegetsmeasured.And,naturally,whattheywantfromthe

professionitself.

OVERVIEW

04

expandingfaster

thanitssupport.

HR'smandateis

verallengagementamong

professionalshasheld

relativelysteadysince2026.More

thanhalfexpectheadcount(52%)

andbudget(54%)torise,yetHR

teamsarefeelingmorewornoutafteryearsofwhiplash,withthe

shareofthosereportingthat

they'refullyengagedandenergizeddippingfrom41%to30%.

InHR'sfunhouse,anyhopeofearning

credibilityandmakingadifferencecan

quicklywarpintofeelingundervaluedandoutofcontrol.PeopleteamsareexpectedtoleadAladoptionacrosstheircompaniesanduseittosolvechallengesintheirowndepartments,yetmanyhaveasinkingfeelingthey′re

optimizingthemselvesoutofajob.OfthoseconsideringleavingHR,morethanoneinfive(21%)fearbeingreplacedbyAI.

“Idon'tthinkthere'safunctionanywherethat'sundergonethekindofextremechangethattheHRfunctionhas,"reflectedMatt

McFarlane,founderofStartupPeople

Summit.“Fifteenyearsago,HRwasaback-officecompliancejob.Thenitwaspushedsquarelyintoamorecommercialfunction

througheventssuchasthepandemicandgeopoliticalupheaval.Now,theroleis

increasinglyexpandingtoleadAladoptionacrosstheworkforce,withperformanceandprofitexpectations.Leftunsupported,it'sarecipefordisaster."

Forthosefeelingcrushedundertheenormityoftheirrole,itcouldbetimetorediscover

whattheycameintotheprofessiontodo.

“It'sokaytoleaveHR,butit'snotokayto

abandonwhatyoubelieveinbecauseitgothard,"saidChuckMarcelin,directorofHR

atHVPG."Ifyoubelieveinawayofdoingthisworkandyourorganizationwon'tletyoudoit,don'tshrink;gobuilditsomewhereelse.”

TopReasonsforLeavingHR:

Feeling

undervalued

39%

OperatingincrisisPressureand

modeburnout

35%34%

OVERVIEW05

OverhalfofHRconsideredacareerchange

thisyear.

HR'shandisontheescapehatch.WhenaskedwhethertheywerethinkingaboutleavingHR,thebelowrespondentssaidyes.

Overall

Geography

Europe

US

Collar

GreyCollarBlueCollar

WhiteCollar

2026

40%

31%…

48%.

40%

32%—→38%

……7%→40%

48%…

40%

2027

50%

50%

50%

55%.

60%

60%

60%

70%

70%

70%

70%

It'sokaytoleaveHR,butit'snotokaytoabandonwhatyoubelievein

becauseitgothard.Ifyoubelieveinawayofdoingthisworkandyourorganizationwon'tletyoudoit,don'tshrink;gobuilditsomewhereelse.

ChuckMarcelin

DirectorofHR@HVPG

OVERVIEW06

GlobalHRpriorities

areworldsapart.

A

prioritiesarethisyear,and

skUSHRleaderswheretheir

you'llfindthemjoininghandsina

managementtookthetopspot,

familiardance.Performance

with42%ofrespondents

prioritizingit.Employee

engagementcameinsecondwith36%,andmanagerenablementand

traininginthirdat33%.

Butthechoreographylooksverydifferent

acrosstheocean.InEurope,41%ofHR

Performancedidn'tevenslideintoEurope'stopfive,likelybecausethey'reweavingitintoeverydaypractices.ComparedtotheUS,

EuropeanteamsarealmostfourtimesmorelikelytoprioritizeDEIBprograms(27%versus7%),apracticeproventosupport

performanceandbusinessoutcomes.

Meanwhile,USHRteamsseemmore

hamstrungbycapacity.They'remorelikelyto

runweeklyorbiweeklyone-on-onesbetweenmanagersandemployees(45%versus27%),butsimultaneouslycitetimeconstraintsas

themainreasonmanagersstruggletoprovidemoreone-on-ones,updates,andfeedback(70%versus48%).

leaderssaidtheirbiggestpriorityfor2027isupdatingtheirHRtech,whileL&Dandtalentacquisitiontrailinsecondandthirdplacewith32%and31%ofthevote,respectively.

Whilesomecompaniesthinktheycansolvetimeconstraintswithautomation,USHR

teamsarealsomorelikelytosaythat

productivitygainsassociatedwithAlareoverestimated(77%vs64%).

Bothregionsclearlycareaboutperformance,butthewaytheygetthereisverydifferent.

"Apeople-firstculturedoesn'tmeanyouareloweringyourperformanceexpectations,it's

aboutcreatingtheconditionsforpeopletodotheirbestwork,"saidDaveDruzynski,CPOatFleetworthy.“Thatmeansclear

expectations,frequentcoaching,

accountability,andagenuineinvestmentinemployeegrowthanddevelopment.”

Thepeople-first

routeispayingoff:

81%ofEuropeanHRsaytheir

employeesare

highlyengaged,versus66%intheUS.

OVERVIEW

07

TransatlanticGaps:Europeanvs.USHR

EuropeanHRteamsarepullingaheadinDEIB,psychologicalsafety,paytransparency,andothercriticalareas.

20%40%60%80%

PrioritizeDEIBprograms7%

DEIBwas4xlikelierto

beapriorityinEurope.

engageeplyi66%81%.

Companyregularly

takespublicstances17%41%

oncurrentevents

Seniorleadership

prioritizespsychologicalsafety

Ratetheircompany'spaytransparencyasstrong

Sayemployeesare

meeting/exceeding

theirgoals

forHRwithleadership

DiscussethicaluseofAI

●HRteamsintheUS●HRteamsinEurope

OVERVIEW

08

Highperformance

isbydesign.

Forhigh-performingteams

(thoseexceedingtheir

goals),performancemanagement

requiresintricateinfrastructure,

whereeverycogthatconnects

people,process,andtechis

preciselyplacedtomoveinconcert

withtheothers.

Performanceisn'ttopoftheirprioritylist—itdoesn'tneedtobe.They′refarmore

intentionalaboutcuratingtheconditionsthatenableit.

“Theteamsthatarethrivingrightnoware

leveragingAltoclimboutofthebackofficeandautomatetheadministrativesideoftheirwork,"saidErinGrau,cofounderatCharterandchiefoperatingandAlofficeratTheSanFranciscoStandard."They'rereinvestingthattimeintheworkonlytheycando,like

coachingmanagers,codifyingculture,planningwhichskillsthecompany

needsgoingforward,andbuildingorganizationaltrust."

2X

TopHRteamsaremorethan2xaslikelytobeupdatingHRtechin

2027thanlow-performingteams.

Theirtechstacksarecarefullycurated,too.

TopHRteamsaremorethantwiceaslikelytociteupdatingHRtechastheirkeypriority

comparedtothosefallingshortoftheirgoals(41%versus20%).

Butit'snotjustwhatthesehighperformersdo;it'salsohowthey'resupported.They'retheoutcomeofabroaderenvironmentthat'sprimedforperformance—onewhereseniorleadershipprioritizespsychologicalsafety

(75%versus40%)andcompanycultureoverproductivity(72%versus36%).

AndwhenHRfeelsvalued,heard,andsafetochallenge,itpaysoffforthewhole

organization:TopHRteamsaremorethan

twiceaslikelyasunderperformingonesto

saytheiremployeesarehighlyengaged(85%versus40%),andtentimesmorelikelytosayemployeesareexceedingthecompany's

goals(42%versus4%).

People-firstcanoftenbe

conflatedwithDowhatever

yourpeoplewant.'Inmy

mind,it'sinvolvingyour

peopleintheperformance

you′retryingtoachieve.

MattMcFarlane

Founder@StartupPeopleSummit

OVERVIEW

09

ThetopHRteamsleanintoperformance

managementandtechnology.

Whencomparingteamswhowereexceedingandfallingshortoftheirgoalsafewnotabletrendsstoodout.

Conductquarterlyreviews

36%

16%

LeveragePIPsorplanto

87%

64%

Usespecializedanalyticstools

43%

32%

UseAltosummarize

performancefeedback

64%

24%

UseAltoidentifybiasinhandbooks,reviews,andraises/promotions

47%

28%

High-PerformingHRTeamsLow-PerformingHRTeams

KEYFINDING#110

Performanceand

imperatives.

techarebusiness

erformanceand

engagementhavelongbeen

HR'smostenduringpowercouple,

signsofanimpendingbreakup,a

butour2027datashowsthe

burgeoningdynastyfor

performanceandtech,anda

recordlowforDEIB.Whatgives?

"Darelsaywe′reexperiencingavibeshift?"

commentedHebbaYoussef,founderofIHateItHereandCPOatWorkweek."Foralong

timetherewasthe'Wecareaboutour

people'mentality,anditoftendidn’'tget

checkedagainstthecosts.Thenbudgets

tightened,headcountgotwayleaner,and

there'snoslackleftwhenitcomesto

performance.Alsofactorintheever-evolvingandsomewhatunprovenAllayer.Forbetterorforworse,Alissomewhatraisingthebar

onwhat'meetsexpectations'evenmeans.

Andbecauseofthat,performancewentfromanHRritualtoaboard-levelquestionand

organization-widefocus."

Whileperformancemanagementhasthisyear'ssashandcrown,anewchallengerisemergingfromHR'soverstuffedto-dolist:

updatingHRtech.Almostone-third(32%)ofHRprofessionalsreporteditasakeyfocusforthecomingyear,amorethantwofold

increasesince2025.

Coincidence?Wedon’tthinkso.Justas

performanceandengagementarecosmicallyaligned,performanceandHRtechseemto

beinthesamekindoforbit.

HRtechiswhatkeepsperformancein

perpetualmotion,structuringfeedback,

goals,andemployeegrowthintoa

repeatable,data-drivenprocessthatrunsyear-round.ButHRtechonlydeliversthose

insightswhenmanagersandemployeesgive

itsomethingmeaningfultoworkwith.

Darelsaywe′re

experiencingavibeshift?Forbetterorforworse,Alissomewhatraisingthebaronwhat'meets

expectations'evenmeans.Andbecauseofthat,

performancewentfromanHRritualtoaboard-levelquestionandorganization-widefocus.

HebbaYoussefCPO@Workweek

11

KEYFINDING#1

HR'sFastestGrowingPriority:Updating

Technology

PerformancemanagementcontinuestoleadHR'sprioritylistfortheyearahead.EmployeeengagementandDEIBcontinuetheirslidefromlastyear.

43%

40%

37%

Updatingtechisup2xsince2025.

30%

29%

15%

202220232024

PerformanceMgmt

38%

Engagement

34%

UpdatingHRTech

32%

ManagerEnablement

32%

TalentAcquisition

30%

DEIBPrograms

13%

KEYFINDING#112

Al'sTimetoPerform

NowhereisHRtech'simpactmore

clearlyfeltthaninperformancemanagement.

Annualreviewsarestillamainstayformany,butthere'sagrowingcontingentmoving

towardmorefrequentreviews.One-third

(33%)oforganizationsrunreviewsona

quarterlybasis,while12%runthemmonthly,a

threefoldincreasesince2025.

Butshouldn'tallthoseextrareviewcyclesleadtoawholeheapofextraadmin?

Nope,saysHR,becausethetechispullingthatextraload.

“Ifimplementedproperly,Alshouldreducethe

administrativeburdenofperformance

management,butitshouldneverreplacethe

humanconversation,"saidDruzynski."IfAlhelpsmanagersorganizefeedback,identify

patterns,ordraftreviewsmoreefficiently,

that'sawin.Therealvalueofperformance

managementisn'tinthewrittenreview,itisintheconversationthatfollows."

Secret'sout:Alisalreadywritingyourreviews.

Almostthree-quartersofHRbelievesomeormostmanagersareusingAlto

writeperformancereviews.Mostsaythat'sagoodthing.

Someormostmanagers

areusingAlforreviews74%

BecauseofAl

Reviewqualityisbetter64%

Completionratesarehigher64%

Writingreviewsisfaster76%

KEYFINDING#113

MoreWork,SamePaycheck

Thisyear,pay-for-performanceisstillworkingasHR'sgildedcarrot-on-a-stick,with64%usingmeritraisesandbonusestorewardhigh

performance.

Butforagrowingshareofemployees,thatextraeffortisgoingunrewarded.Overhalf(54%)ofHRleaderssaythatemployeesarebeingaskedtodomoreworkwithoutmorepay,upfrom43%lastyear.

“Alisfreeinguprealtimebytakingwriting,

review,andadminworkoffpeople'splates,"Marcelinsaid."Leadersseethatfreed-up

capacityandaddmoreworkatthesamerate,soemployeesendupdoing120%ofwhat

theyusedtodoin100%ofthetime.Thefixis

tobehonestthatmoreresponsibilityshould

comewithmorepay,notjustmorecapacity.”

54%

ofHRleaderssaythatemployeesarebeingaskedtodomoreworkwithoutmorepay,upfrom43%lastyear.

KEYFINDING#114

PIP,PIP,Hooray?

Morethanhalf(51%)ofHRleaders

reportusingperformance

improvementplans(PIPs)aspartof

theirperformancestrategy,whilea

further31%plantodosointhe

future.

"Feedbackalwayshastocomefirst,"said

AshleyAlvarado,directorofpeoplestrategyatAway."Aformalplaniswhathappenswhensomeonecan'ttakeongoingfeedbackand

adjust—it'sthestructurethathelpsthemgetbackontrackwheninformalcoachinghasn'tbeenenough.”

WhilePIPsarealreadycommon,theystill

causetrepidation;only18%ofHR

professionalsgloballysaidtheyhadno

reservationsaboutPIPs.IntheUS,64%ofHRprofessionalssaidtheirtopconcernisthatemployeesviewPIPsastheprecursorto

beingfired.EuropeanHRleadersarelessworriedaboutthat,but42%areconcernedabouthowPIPsimpactemployeemorale.

Toworkthroughthoseconcerns,Alvaradostressedtheimportanceof"gettingclearon

theactualoutcomewe'redrivingtowardand

makingsuremanagersaregenuinelyleaningintocoachingratherthanjustgoingthroughthemotions."

HRhasacomplicatedrelationship

withPIPs.

OverhalfofHRteamsleverageperformanceimprovementplans.Thatdoesn'tmeantheydon’thavereservationsabouttheiruse.

OverallUSEurope

1Perceivedlinktotermination

58%64%

37%

2Impactonemployeemorale

38%38%

42%

3Unrealisticgoalsfrommanager

33%34%

31%

4Associatedadmincosts

24%

22%

32%

5Noconcerns

18%

16%

25%

KEYFINDING#1THEWAYFORWARD

Co-DesigningPerformanceProcesses

WithYourPeople

Employeescantellthedifference

betweenaperformance

managementsystemdesignedtoenablethemandonedesignedto

controlthem.

Pay-for-performanceandPIPsmaypullonthestringsthatdriveshort-termmotivation.Butthey'retactics.Iforganizationswantgreaterpredictabilityaroundperformance,theyneedtocreatetheconditionsandcultureto

supportit.

Caseinpoint:PIPscanfeellikeonestepaway

frombeingfiredwhenthey'reusedtoolate

orintheabsenceofmeaningfulcontext.

"Awell-executedPIPshouldalwaysrepresentagenuineopportunitytoimprove.Employeesdeserveclearexpectations,regularcoaching,andanhonestassessmentofwherethey

standthroughoutthePIP,"saidDruzynski.

“WhendeliveringaPIP,managersshouldusetheconversationasanopportunitytoinspireconfidenceintheemployee,andletthem

knowthattheysupportthemandbelieveinthem."

Thatsameopennessneedstorunacrosstheentiresystem.

“People-firstcanoftenbeconflatedwithDowhateveryourpeoplewant,"McFarlanesaid."Inmymind,it'sinvolvingyourpeopleintheperformanceyou'retryingtoachieve.”

Awell-executedPIPshouldalwaysrepresentagenuineopportunitytoimprove.Employeesdeserveclear

expectations,regularcoaching,andanhonestassessmentofwheretheystandthroughout.

DaveDruzynski

CPO@Fleetworthy

KEYFINDING#1THEWAYFORWARD

Involvementmeanstransparencyinhow

performanceisdefinedandhowdecisionsaremade.Engagementsurveyinsightscan

helpyouidentifyhowyourprocessesare

workingrightnow—ifpeopleknowwhat's

expectedofthem,trustpayandpromotion

decisions,orfeelliketheygetenoughfeedback.

Fromthere,co-designformalandinformal

performanceprocessesinlinewithhow

employeeswillactuallygetthemostoutofthem.Thismaymeankeepingyourformal

annualreviewwhileenablingmanagersto

tailorinformalprocesses—likeone-on-onesandcheck-ins—totheirteam'sroutine.It

couldalsomeanintegratingAlintodailytoolstoshapebehaviorandperformancebetweenreviewcycleswithin-the-momentnudges,

McFarlanesuggested.

Butwhateveryourperformanceprocesses

looklike,employeeshavetobeabletoget

behindyourrationale.That'sthedeciding

factorinhowmanyperformancereviewsyourorganizationshouldrun.

“Thegoldengooseofperformancesystemsiscontinuousfeedback,"McFarlanesaid."Thechallengeisthatit'shardtosystematize.It

doesn'talwayshavetobeformalized,buttheformalchecksarehowwecaptureandactionperformance.Ifyoucanbetterlinkthose

formalcheckstoclearoutcomes(thatpeopleunderstand),you'llbegrantedpermissionbyyourworkforcetodomorefrequentreviews.Companiesneedtodefinethethreshold

betweenmoreandlessreviewsfor

themselves,ideallyintandemwiththeirpeople.”

十LATTICECANHELP

1nore!

TakeaFreeTourofLatticePerformance

IfHR'sdrivingperformance,considerLatticeyournavigationforreviews,1:1s,updates,feedback,andmore.Seeforyourselfwithafreetour.

→

TourLatticePerformance

KEYFINDING#217

AlpullsHRcloser

tothecenterofthe

business.

verthelastyearorso,muchoftheforecastaroundAlhas

beenhighbluster,asmatteringofuncertainty,andastrongchanceofscreamingpanic.HRleadershavebeenthere,umbrellasflipped

inside-out,toweatheritall.

In2027,theweatherislookingrathersunnyfromwhereweresitting:83%ofHRleadersaresomewhatorveryexcitedabouttheuseofAlinHR.

OptimismisalsogrowingforagenticAI.TheshareofHRleaderswhoareactivelyexcitedaboutagenticAlincreasedfrom13%to19%since2025,whilethosewhofeelcautiouslyoptimisticrosefrom31%to35%.

Thosewhoareoptimistic,hopeful,orexcitedoutnumbertheskepticsbyalmostfourto

one:79%lookforwardtosheddingsome

administrativedeadweightwithafewagentsontheteam,comparedto19%whodon't.

HR'sexcitementoverAlcontinuestoclimb.

Over80%ofHRleadersareexcitedaboutAI.That'sanotablejumpfrom2025,drivenbyalargewavemovingfromneutralto"somewhatexcited."

VeryExcited

SomewhatExcited

Neutral…个

NotExcited-1%←

20%40%

KEYFINDING#218

TheAIComfortZone

PrimaryusecasesforAlthisyearlookmuchliketheydidacoupleof

yearsago,withHRleadersstillusing

Altowritejobdescriptionsand

reviews,orsummarizedata.

Butnow,depth,notbreadth,isbecomingarisingpriority.UsageofenterpriseplatformswithembeddedAljumpedfrom31%to44%yearoveryear,markingamovefromplunkingaroundonLLMstodesigningamoreAl-

forwardstackentirely.

AlisalsobecomingmoreintegratedinHR'scoresoftwarelayer.Overhalf(58%)ofHR

leadersthisyearsaidtheyuseproductivityor

automationtoolswithAlfeatures,upfrom46%inour2026report.

AllsignspointtoafunctiongettingcomfierwithAloverall—uptoapoint,ofcourse.

MostHRleaderssaythey'recomfortablewith

managersusingAltosummarizemeeting

notes,draftperformancereviews,andidentifybiaswithinreviews.Butthat

confidenceleveldropswhensomeone's

livelihoodisatstake:HRleaderswerealmost

twiceaslikelytofeelcomfortableletting

managersuseAltodistillmeetingnotesandemailsastouseittoidentifywhogetsthepromotionorraise.

“Idon'tseeAlmakingthefinalcallonraisesorpromotions,andldon'tthinkmostleadersl

knowwantitto,"Marcelinsaid."Alisexcellentattheinputs:who'sperforming,whatthe

marketdatasays,wherethepaybands

shouldsit.Itcanmakethatprocessfasterandtherecommendationsharper.Butthe

decisionitselfaffectssomeone'sincome,

theirfamily,theirlife,andTheAldecidedyoudidn’'tgetpromoted'isn’tasentenceany

leadershouldhavetosay.Therecommendationengine,yes.Thedecision,no."

HRtrustsAlwithbusywork,notdecisions.

MostHRleadersarecomfortablewithmanagersusingAltosummarizemeetings,draftreviews,andidentifybias.Comfortdropsinusecasesofpromotionsandpay.

Summarizeyear-roundmeetingnotesandemails

34%42%76%

72%

Draftandpolishreviewstoensuretheyareprofessionalandbalanced

29%

43%

65%

Identifypotentialbiasinthereview

22%

43%

Identify

wh

ichcandidatesshouldreceivethepromotionand/orcompensationincrease

11%31%42

VeryComfortableComfortable

KEYFINDING#219

PressureFromtheTop

Overhalf(51%)ofHRleadersfeelC-suitepressuretouseAlto

improveefficiency,upfrom39%lastyear.Thegoodnews:62%ofthemalreadythinkthey′re

deliveringonthatexpectation.

Butdespitethepressure(andtheprogress),worryiswaningintherightplacesand

promptingpracticalaction.TheshareofHRleaderswhosaidtheywere“veryconcerned”aboutethicalissuesrelatedtoAl—includingbias,climatechange,andjobloss—fellfrom23%to16%yearoveryear.Andwhile61%ofleadersremainwaryofAl'spotentialimpacts,71%havealreadyvoicedthoseconcernsto

theirleadershipteam.

HRhasthetrainingtoseerisksfromamileaway,andtheyaren’tabouttoletAlofftheleash.Investigatingtheirconcernsiscriticalwhenadoptingnewusecases.

“WhatdataistheAltrainedon,andwho's

checkeditforbias?"Youssefsaidtoask.“Thehumanintheloopisamust,andleadersneededucationonhowthisbiascancomeup."

Alpressureisrising.HRteamsaregettingcozierwiththerisks.

Theyshareofthosefeeling"very"concernedaboutA'sdownsideshasdropped.

%feelingpressuredtouseAltoboost

60%

40%

39%

20%

23%

2026

byC-suiteefficiency

51%

"very"concerned

potentialimpacts

60%

40%

20%

%feeling

aboutAI's

16%

2027

2026

2027

KEYFINDING#220

UnderNolllusions

ThoughAlwasoncetoutedasthecure-allforHR'sills,teamsarenolongerbuyingitsuniversality.

Instead,they'reusingitfortheachesitcanhelp.

Overtwo-thirds(69%)ofHRleaderssay

they′resatisfiedwiththird-partyAltools,likelybecausetheirexpectationsofhowthose

toolscanoffervaluearenowmorecalibratedtowhat’sactuallypossible.

Thatlevel-headedviewisplaying