AI in HR: Separate Hype from Reality to Achieve Business Goals

CHROs are turning to AI to transform their HR functions by improving strategic value, efficiency and decision making. However, in trying to implement AI solutions quickly, many CHROs are not following best practices, leading to marginal gains and limiting its impact.

We spoke with Eser Rizaoglu, Senior Director Analyst in the Gartner HR practice, about the latest innovations profiled in the Gartner Hype Cycle for AI in HR to help HR leaders make informed decisions about their investments.

Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and how they are potentially relevant to solving real business problems and exploiting new opportunities. Gartner Hype Cycle methodology gives a view of how a technology or application will evolve over time, providing a sound source of insight to manage its deployment within the context of specific business goals.

Journalists who would like to speak with Eser regarding this topic can contact mary.baker@gartner.com or gerri.weinberger@gartner.com. Members of the media can reference this material in articles with proper attribution to Gartner.

A: The hype surrounding generative AI (GenAI) has catalyzed investment in all forms of AI innovation, moving the use of AI in HR from experimentation to a core differentiator. Organizations are increasingly embedding AI technology across the employee lifecycle: from recruitment and onboarding to learning and development and talent management (see Figure 1).

The Gartner Hype Cycle for AI in HR, 2025 reveals three key trends:

• Almost half of AI in HR innovations are positioned at the Innovation Trigger –There is a lot of hype but often limited usability or proven commercial viability.
• GenAI in HR is quickly moving toward the Trough of Disillusionment – Many CHROs are struggling to demonstrate true value from their investments while best practices and solutions remain in flux. Agentic AI promises to enhance efficiency but is still in infancy.
• Machine learning in HR, and AI in talent acquisition are entering the Slope of Enlightenment – These technologies are now beginning to demonstrate maturity, scalability and strong ROI. AI capabilities are being fused into the broader talent management life cycle, including skills management, learning and development and performance management.

A: CHROs who want theirs to be an AI-first HR function are creating a new dedicated “Product Leader for AI in HR” role. This is a transformative role that generally reports to the CHRO with two key responsibilities: creating and driving the HR AI strategy to transform the HR function and liaising with enterprise AI teams to ensure HR is effectively planning for AI’s impact on the workforce.

HR leaders need to also balance the maturity and benefits of AI innovations against the amount of time required to achieve mainstream adoption. One of the key outputs of the Product Leader for AI in HR role is building an HR-focused AI strategy that is aligned with the broader enterprise-wide AI strategy.

This will give HR leaders a clear guide to maximize AI investments, delivering immediate value in the short- to medium-term, while preparing for long-term changes like adapting their operating models and fostering a culture of AI knowledge sharing and acceptance.

These steps will help HR move beyond incremental improvements and drive meaningful transformation, positioning HR as a strategic, AI-first function.

A: One of the biggest risks CHROs face is rushing to implement AI and in doing so, skipping best practices for successful technology adoption, preventing their organization from realizing true gains from the technology. Many innovations, especially GenAI and agentic AI, are in varied states of maturity, making it difficult to demonstrate clear ROI. CHROs and their teams must take a structured approach to AI in HR by:

• Developing an AI strategy aligned to desired outcomes and business goals. HR’s AI strategy must align with the organization’s enterprise-wide AI strategy and the overall HR functional strategy, outlining HR’s vision, governance approach, and risk and ethics considerations.
• Understanding how HR roles will transform with AI. To plan for AI’s impact on HR staff, the CHRO needs to create augmented roles while upskilling or reskilling HR staff to effectively use AI.
• Focusing on scaling AI effectively. HR leaders should focus on AI use cases with high business value and feasibility and help their team assess use cases against vendor offerings.

HR leaders should prioritize structured, strategic AI adoption—focusing on mature solutions like AI in talent acquisition—while piloting emerging innovations – like AI agents – that are relevant to their organization. Collaborating with IT and enterprise AI teams is essential to ensure alignment and maximize AI’s impact on talent and business outcomes.

Gartner clients can learn more about AI in HR in the hype cycle report: Hype Cycle for AI in Human Resources, 2025.