In 2026, HR leaders are focusing on integrating advanced technology with human-centric leadership to attract and retain top talent. Key strategies include utilizing AI to augment human capabilities rather than replace them, developing skills-based career paths and fostering internal mobility. Transparency in AI implementation is also critical for building trust, experts say.

Companies are increasingly relying on data and analytics leadership to improve human capital management and HR-focused business process outsourcing from administrative functions to strategic assets, writes Jyoti Kunal Shah of ADP. Chief data officers, AI leads and analytics executives are pivotal in shaping data strategies, developing analytics products and overseeing the ethical use of AI, Kunal Shah writes.

Coaches are increasingly integrating AI into their practices, as clients, particularly those from younger generations, utilize it for personal guidance. Many coaches have shifted from fearing AI to seeing it as a tool that enhances their work, not as a competitor, said participants at the ATD Coaching Conference. AI can provide continuity between sessions, recall patterns and offer 24/7 accessibility, but it lacks the empathy and intuition that human coaches provide.

It is possible to enhance applicant fraud detection by using AI to analyze social media metadata, such as profile age and activity, to verify the identities of job candidates. Tofu, a startup, has developed a system to cross-reference these data points and identify potentially fraudulent profiles, providing hiring platforms with reports on suspicious applicants.

Companies that are most successful with AI are those that apply skills to business problems quickly, according to research by The Josh Bersin Co. Prioritizing AI is one of six ways companies can get ahead, along with implementing systemic HR.

Eighty-three percent of organizations have low maturity in AI and automation within HR, with only 1% reaching high intelligence levels, according to a report from Phenom. The report highlights the need for AI and automation to address skill shortages and meet hiring demands. It suggests strategies such as automating workflows and incorporating AI for improved candidate matching.

The labor market showed signs of cooling in November, with only 64,000 jobs added primarily in health care and construction, according to the Bureau of Labor Statistics. The unemployment rate rose to 4.6%, the highest since 2021, with significant increases among teenagers and Black workers. Experts, however, caution against drawing conclusions due to data collection issues that occurred during the government shutdown.