HR in 2026 will be Defined by the Impact of AI Innovation on Work

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17 Nov, 2025, 12:35 GMT

From skills-based job design to agentic AI, ADP experts provide insights on the trends and developments that will define work in 2026

People Trends: How organizations are aligning people, skills and strategy in an AI-driven workplace
AI in HR: How the responsible adoption of generative and agentic AI will enhance productivity and human connection
Changing Regulations: How organizations are navigating pay transparency, multijurisdictional compliance and AI regulations
ADP Expert Insights: Global perspectives on the future of work and the evolving HR-IT collaboration

ROSELAND, N.J., Nov. 17, 2025 /PRNewswire/ -- ADP's 2026 HR Trends Guide reveals how organizations around the world are preparing for an AI-driven workplace. To better align people and strategic objectives, businesses are adopting a more skills-based approach and using data and technology to optimize talent, navigate compliance and enhance employee experience. The report also underscores the growing importance of HR-IT collaboration, responsible AI governance and transparency in shaping the future of work.

Experience the full interactive Multichannel News Release here: https://www.multivu.com/adp/9348551-en-adp-releases-hr-trends-guide-2026

See all the 2026 HR trends and gain practitioner insights

Organizations are assessing their skills inventory and aligning people with organizational goals. As AI transforms the workplace, leaders are taking a more skills-focused approach, using data and technology to identify key competencies and strategically redesign roles to align talent with business needs.

As the skills landscape changes, companies have high expectations for the benefits that AI will offer, with 84% of large organizations agreeing that using AI can help streamline processes but will not replace employees, 76% of midsized organizations, and 73% of small organizations (ADP Market Pulse Study, April 2025).

Reframing AI as a collaborative partner empowers employees to innovate, stay engaged and grow alongside evolving roles. Building this mindset requires intentional training, hands-on experimentation and leadership that models continual learning.

"Helping people adopt a mindset of technology collaboration is important to successful AI adoption. Integrating AI technology into daily workflows helps employees use it effectively and engage more fully with their work. They can focus less on individual tasks and more on solving for people's needs. In this way, AI becomes a facilitator of human connection and engagement, highlighting the true benefit of this technology and helping people feel valued and integral at work." – Tiffany Davis, chief talent acquisition, inclusion and diversity officer, ADP

As countries and U.S. states consider whether and how to regulate AI in employment decisions, differing approaches are emerging. Legislation in the EU, Colorado, and other jurisdictions emphasize the importance of guardrails when AI is used in the employment context and require stricter limits, transparency and audits.

"When evaluating any AI tool, consider whether it was developed using secure, high-quality data, whether it produces reliable and meaningful results and whether it helps streamline, rather than complicate, work processes. Maintaining human oversight, providing transparency to employees, regularly monitoring output and addressing potential issues early are key aspects of a responsible AI program." – Helena Almeida, vice president, managing counsel, AI legal officer, ADP

Pay transparency requirements are expanding, especially in the EU. By 2026, both the EU and many U.S. states are increasing pay transparency and equity requirements, prompting employers to provide clearer information on pay, advancement, and gender gaps.

"With pay transparency laws growing worldwide, employers must evaluate their compensation levels now, both internally and externally, and ensure current pay ranges are fair, competitive and based on objective work-related criteria." – Helena Almeida, vice president, managing counsel, AI legal officer, ADP

Employers continue to face multijurisdictional compliance challenges. Employers must navigate a patchwork of local, state and federal rules, which can vary widely and change frequently. The complexity increases for employers who might be operating across different countries. Balancing compliance with multiple, sometimes conflicting laws makes creating consistent policies challenging.

"Compliance and managing risk are always bigger considerations than simply what the law requires. Having multiple laws with different requirements that apply doesn't always mean creating a separate practice for each law. It's often possible to develop a standard, focused on the employees' rights and best practices, that can work in most circumstances and allow you to have a consistent approach." – Meg Ferrero, vice president and assistant general counsel, ADP

Agentic AI is emerging as a core HCM capability. Organizations are leveraging agentic AI to streamline HR operations in several ways, like automating onboarding processes, simplifying validations and error detection in data-heavy workflows like payroll, and proactively generating insights from HR data with clear recommendations on actions and next steps to drive outcomes. By combining the strengths of human intuition and the power of agentic AI, organizations can foster a collaborative environment that enhances overall efficiency.

"Agentic AI unlocks new frontiers of automation, coordinating multistep work and adapting to real-world variability. Human oversight provides purpose and guardrails, clarifying objectives, approving critical actions and reviewing impacts. Together, they deliver scalable automation that's trustworthy, compliant and resilient when conditions change." – Amin Venjara, chief data officer, ADP

Data management is evolving as companies deploy agentic AI. Agentic AI is reshaping data management, requiring leaders to prioritize seamless data flow while addressing quality, privacy and security. Robust governance and protections are nonnegotiable as AI interacts with company data.

While an understanding of the governance landscape for agentic AI is still emerging, leaders report that governance for generative AI exists today with 20% of small businesses, half of midsized, and two-thirds of large companies saying they have a process in place ("How companies do HR," ADP internal analysis, 2025).

HR and IT are becoming more reliant upon each other as AI reshapes the workplace. As agentic AI is increasingly adopted across the workforce, human and agent interactions will be critical for the delivery of work, requiring HR and IT to work closely together to ensure work gets done effectively and responsibly so that business moves forward. For HR leaders, success will increasingly hinge on IT's expertise in selecting, implementing and managing complex technologies. At the same time, IT will rely on HR to provide insight into how these tools affect people in terms of adoption and human impact.

"IT is definitely a bigger part of the decision-making than it has been in the past. What they care about are things like user management, data security, integrations and how the integrations work. Are they modern? Are they scalable? Can they connect with each other, and how will maintenance be performed on these connections?" – Tonya James, vice president of product management, global payroll, ADP

With continued innovation and insight, ADP supports organizations worldwide in helping people achieve greater success at work. For additional insight and resources, visit adp.com/HRTrends2026.

About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises — and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com

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