Contents
- How far has AI already reshaped HR in the UK, and what gaps remain?
- What new AI capabilities will impact HR in 2026?
- Will AI replace, restructure or elevate the HR function?
- What ethical, cultural and regulatory forces will shape HR’s use of AI?
- What will ultimately define HR in 2026 if not AI?
- Balance the human touch and the power of AI with PeopleHR
How far has AI already reshaped HR in the UK, and what gaps remain?
AI in HR is no longer a future concept; it’s already embedded in everyday workflows for HR teams in the UK and beyond. However, adoption has been uneven, and the gap between promise and reality is still very visible across sectors and organisation sizes. To understand what 2026 might look like, it’s worth grounding the discussion in what’s actually happening now and where momentum is stalling.
The HR Director reports that the most common areas of investment in AI for HR are learning and development (31%), recruitment (28%), and HR support (28%). This includes using AI-driven tools for tasks like CV screening, workforce analytics, AI chatbots and HR self-service. In these areas, the benefits are easy to see. Analytics tools can flag skills gaps and areas of dissatisfaction, while self-service portals allow employees to manage essential HR functions on their own. For HR teams under pressure to do more with less, these efficiencies matter.
That said, not every use case lives up to the hype. AI tools are only as good as the data behind them, and many UK businesses still struggle with fragmented HR data across payroll, recruitment and performance systems. Some organisations report spending significant time training systems, cleaning data and interpreting outputs, only to find that insights are either too generic or difficult to trust. Without a solid data foundation, AI can quickly become a distraction rather than a driver of value.
SMEs face additional hurdles, with the cost of implementation being just the tip of the iceberg. Securing stakeholder buy-in, reassuring employees about how their data will be used, and upskilling HR teams to analyse AI-generated insights all take time. Without clarity on purpose and governance, the adoption of AI can create more work than it saves.
What new AI capabilities will impact HR in 2026?
While the current use of AI in HR is largely about efficiency, emerging technologies are moving towards influence and insight. In 2026 and beyond, the most impactful technologies won’t just automate tasks; they’ll start shaping how decisions are made across the employee lifecycle. This shift brings both opportunity and discomfort, particularly where people decisions are involved.
Adaptive learning platforms are a strong example. These systems can personalise development pathways based on role, performance data and even learning preferences. In theory, this moves L&D away from one-size-fits-all training towards continuous, tailored growth. Similarly, advances in sentiment and behavioural analysis promise deeper insight into engagement and wellbeing trends, drawing from employee surveys, communication patterns and feedback tools.
IT research and advisory firm Gartner suggests that AI will increasingly support leaders by helping them to accelerate growth, increase the value of those in management roles, and serve as a sounding board for making important decisions. From drafting performance feedback based on employee data to analysing risks and simulating complex scenarios, AI tools can help managers to make better decisions and spot potential issues before they escalate. However, if used poorly, AI can oversimplify situations and encourage leaders to rely too much on what the system says rather than trusting their own judgement.
This is where trust becomes fragile. HR teams experimenting are learning quickly that AI can support thinking but shouldn’t replace it. As these tools become more capable, organisations will need to decide how far they’re willing to let machines influence decisions that affect people’s careers, pay and wellbeing. Even the most advanced models can struggle with context, bias and ethical grey areas, and may miss the nuances of individual circumstances or organisational culture. Understanding how to create practical AI HR prompts and how to interpret results without over‑relying on them is essential for ethical, effective adoption of AI.
Will AI replace, restructure or elevate the HR function?
The fear that AI will replace HR roles entirely hasn’t gone away, but most evidence suggests that this worry is overblown. Research shows that while AI will automate routine tasks and shift responsibilities within the function, it’s more about redesigning and evolving roles than eliminating them outright. People Management reports that just 5% of HR leaders think that AI will make their jobs obsolete, with many seeing AI as a way to free up time for strategic work rather than replace HR teams altogether.
Day-to-day admin and transactional tasks are the areas that are most likely to shrink, with AI-powered automation already able to handle many routine processes faster and more accurately than humans. However, that shift creates space elsewhere. People analytics, organisational development and culture-focused roles are expanding as organisations realise that they need stronger insights and intentional design to improve the employee experience.
Crucially, the aspects of HR that rely on empathy, judgement and trust remain distinctly human. Handling sensitive employee relations issues, building inclusive cultures and advising leaders through ambiguity are not problems that AI can meaningfully solve on its own. Even when implementing AI in recruitment, where screening and shortlisting are increasingly automated, human oversight remains essential to ensure fairness and avoid reinforcing bias.
Rather than diminishing HR’s value, AI has the potential to elevate it. By removing some of the friction, it allows HR professionals to focus on the work that genuinely shapes organisations and the people that make them successful. The true risk lies not in adoption, but in leaning too heavily on what the algorithms say instead of trusting human judgement.
What ethical, cultural and regulatory forces will shape HR’s use of AI?
AI in HR doesn’t exist in a vacuum. In the UK, its future will be shaped as much by regulation and culture as by technical capability. As organisations experiment with new tools, the boundaries of what’s acceptable, legal and trusted are still being defined.
The regulatory landscape is evolving, with increased scrutiny on data protection, transparency and bias. HR teams are already familiar with compliance pressures, and the addition of AI raises new questions about accountability and fairness. Employees want to know how decisions are made, especially when algorithms are involved, and failing to provide this clarity risks eroding trust.
Culturally, UK workplaces value fairness and procedural justice, so AI systems that feel opaque or overly intrusive can clash with these norms. There’s also a growing AI literacy gap, not just between organisations but within them. HR professionals are often expected to champion adoption without being fully equipped to challenge vendors or interpret complex outputs, which can lead to errors, misjudgements, or over-reliance on automated recommendations.
HR sits at the intersection of innovation and protection, tasked with enabling progress while safeguarding people. How well teams navigate that balance will significantly influence how AI is perceived by the workforce. Our AI adoption playbook is an important resource for HR teams looking to implement artificial intelligence safely and effectively, and includes a step-by-step guide to ensure successful adoption in your organisation.
What will ultimately define HR in 2026 if not AI?
Throughout 2026, AI will undoubtedly be part of HR’s everyday toolkit, but it’s unlikely to be the defining feature of the function. Instead, HR will be shaped by how effectively it integrates technology without losing sight of its core purpose: Supporting people and organisations to thrive together.
The most successful HR teams will be those that use AI as a tool to support people-centric HR strategies. They’ll combine data-driven insights with human judgement, and automation with empathy. The differentiator won’t be who has the most advanced tools, but who uses them thoughtfully and ethically.
As technology accelerates, the human elements of trust, belonging and purpose become more valuable, not less. HR’s role in these elements will matter far more than any individual system or platform, because artificial intelligence can never fully replace the human elements of human resources.
Balance the human touch and the power of AI with PeopleHR
AI will play a major role in the evolution of HR over the next few years, but it won’t replace the need for human connection, ethical judgement and cultural leadership. The organisations that thrive will be those that treat AI as a partner, not a crutch, using it to enhance decision-making while keeping people firmly at the centre of HR strategy.
PeopleHR’s HR AI assistant is designed to help HR teams to strike that balance. By bringing together data, automation and intuitive tools, it supports smarter use of AI without losing sight of the human experience behind every record, process and insight.
If you’d like to see how this approach can support your organisation and its employees, watch our quick 4-minute demo or get in touch to find out more.
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