HR leaders are entering 2026 in a haze of opinions around AI adoption, workforce planning and employee engagement. However, some expert projections reveal significant gaps between executive optimism and operational reality, which puts uncertainty on the CHRO’s desk along with all the regular responsibilities.
According to industry leaders, here are four areas where expectations diverge from what evidence suggests will actually unfold.
AI will drive measurable productivity gains
The reality: Most organizations will struggle with AI change management
“As organizations move beyond experimentation, 2026 will be the year of outcomes for AI,” says Amy Cappellanti-Wolf, chief people officer at Dayforce. “The focus will shift from potential to performance and real measurement of business results across operations, talent acquisition and employee engagement.”
But industry analyst Rebecca Wettemann sees a different picture. Only 13% of HR leaders say their skills data is ready to optimize employee skills for future strategic objectives, according to Valoir’s July 2025 report.
“As organizations look more seriously at AI transformation, many will find HR’s employee skills inventories and understanding are dated, reactionary and fragmented,” Wettemann notes. “If HR doesn’t step up, other leaders like IT and line of business will take the lead on skills inventory and strategic planning.”
Carolyn Troyan, CEO of Leadership360 and former HR executive, predicts a reckoning. “If you don’t yet have a plan for how each division will embrace AI, that should be a top priority for 2026,” she says.
Employees will quickly adopt AI tools
The reality: The AI fluency divide will widen without intervention
Many HR leaders assume AI tools will naturally integrate into workflows once deployed. Dean Guida, CEO of software provider Infragistics and founder of the Slingshot app, identifies the problem. “Companies have implemented AI tools so quickly that many employees haven’t been able to keep up,” he says.
According to Guida, a recent Slingshot survey found that nearly two-thirds of employees use AI tools primarily to double-check their work rather than for strategic applications.
Russ Fradin, CEO of AI ROI measurement company Larridin, also points to a growing divide in enterprise environments. “The gap between AI-fluent employees and those without the time or interest to learn the technology is widening,” he says. “Organizations that invest in peer learning and dedicated time for AI training are seeing higher adoption rates.”
Rita Ramakrishnan, executive coach and CEO of Iksana Consulting, adds another dimension. “AI fluency will be a must-have skill across nearly every role, but the real premium will be on discernment: knowing when not to use AI,” she says. “In 2026, good AI use will be defined not by output but by balance.”
Performance management will modernize smoothly
The reality: Employees and managers will reject performative HR processes
Matthew Adams, organizational development director at online learning platform Pluralsight, envisions AI-driven systems generating personalized, in-the-moment coaching tips using skills data and real-time project metrics. “Performance management will become real-time, personalized and predictive,” he says.
But Wettemann predicts significant resistance. “Managers and employees will push back against HR processes and technologies that treat performance management as more performative than management,” she says. “Managers will create more dynamic performance plans based on real business requirements and employee growth potential instead of HR checkboxes.”
AI and humans will collaborate seamlessly
The reality: Managers aren’t trained to lead both humans and AI agents
Steve Holdridge, president and COO at Dayforce, sees workforce intelligence becoming a board-level asset. “In 2026, an organization’s people data will rival its financial data in strategic importance,” he says.
John Kostoulas, vice president of market positioning and strategy at Dayforce, frames the opportunity as collaboration. “The next era of AI isn’t a takeover, it’s a tango,” he says. “Real progress will come when humans and AI move in sync, each amplifying the other’s strengths.”
But Fradin identifies a critical gap in manager capabilities. “Managers now lead humans and AI agents, and they must be trained to gain this new skill,” he says. “Those who can set clear and data-driven expectations and provide specific feedback for both see project speed and accuracy improve significantly.”
Ciara Harrington, chief people officer at learning platform Skillsoft, emphasizes the balance needed to pull off adoption success. “Organizations that balance technology and humanity will stand out,” she says. “Thriving companies will use AI to free HR for what matters most: building relationships, driving culture and supporting change.”
