- 83% of organizations show low AI and automation maturity in HR, according to a new benchmarks data report by Phenom.
- The gap threatens hiring efficiency, candidate experience, and workforce planning as many companies underuse AI-driven automation.
- The report signals an urgent need for strategy, data readiness, and upskilling to avoid being outcompeted for talent.
Phenom Report: Vast Majority of Organizations Lag in HR AI and Automation
Key finding
A new Benchmarks Data Report by Phenom finds that 83% of organizations demonstrate low maturity in applying artificial intelligence and automation within human resources functions. The result underscores a widespread lag in adopting technologies meant to streamline hiring, employee engagement, and workforce planning.
What “low maturity” means for HR operations
Low AI and automation maturity typically reflects limited use of predictive analytics, automated candidate matching, intelligent chatbots, and workflow automation. Organizations with lower maturity risk slower hiring cycles, inconsistent candidate experiences, and missed opportunities to retain and develop employees through personalized career experiences.
Immediate implications
- Hiring inefficiencies: Manual screening and fragmented workflows increase time-to-fill and cost-per-hire.
- Candidate experience gaps: Lack of automation can lead to poor communication and higher dropout rates.
- Strategic blind spots: Without analytics and automation, HR leaders struggle to forecast talent needs and measure program ROI.
Why so many organizations lag
While the report highlights the scale of the problem, the roots are familiar: legacy HR systems, fragmented data, limited in-house AI expertise, and competing priorities across the enterprise. Many organizations test point solutions but stop short of scaling automation across the HR lifecycle.
Practical steps HR leaders should consider
Phenom’s findings are a call to action. Organizations aiming to close the maturity gap should prioritize a few practical moves:
- Define a clear AI and automation strategy aligned to business outcomes—recruiting speed, retention, or internal mobility.
- Invest in data quality and integration so AI models can deliver reliable recommendations.
- Start small with measurable pilots—candidate chatbots, automated screening, or interview scheduling—and scale what works.
- Upskill HR teams on analytics and change management to ensure adoption.
What this means for employers and candidates
Employers that move faster to mature AI and automation in HR may gain decisive advantages: reduced recruiting costs, better-quality hires, and more engaging employee experiences. For candidates, more mature HR automation can mean faster responses, clearer communication, and a smoother hiring journey.
Conclusion
The Phenom benchmarks report delivers a stark message: most organizations remain underprepared for the AI-driven future of HR. Closing that gap will require strategic alignment, data readiness, and iterative investment in automation—steps that could determine which employers attract and retain top talent in the years ahead.
Image Referance: https://www.morningstar.com/news/business-wire/20251216927019/83-of-organizations-demonstrate-low-ai-and-automation-maturity-in-human-resources-according-to-new-benchmarks-data-report-by-phenom