AI Readiness report
AI is reshaping HR technology at an unprecedented, accelerating pace, transforming everything from talent acquisition to workforce management. But while AI capabilities surge forward, many organizations are struggling to keep up. Our research shows that more than half of executives and managers lack a clear, measurable AI vision, leaving leadership without a defined direction to harness AI’s potential effectively.
Figure 1: More than half of executives and managers say they don’t have a clear vision for AI with goals to measure success
The chart outlines respondents who disagree that they have a clear AI vision with goals to measure success, with managers showing the biggest lack of confidence in this area when compared to executives and experienced professional workers.
This lack of clarity cascades into deeper challenges: only a quarter of business and HR processes are sufficiently simple or digital to support AI integration. Without redesigned workflows and trusted data, AI initiatives remain isolated experiments rather than scalable advantages. The result? Organizations hit an invisible ceiling, unable to absorb AI’s full value, while competitors with sharper vision and cleaner processes pull ahead.
Figure 9: Only a quarter of respondents agree that business and HR processes are simple, digital, and automated
The chart highlights the number of respondents reporting they have business processes that are simple, digital and automated.
The reality is stark: there are no shortcuts to AI readiness. Success demands foundational work — establishing governance that balances ethical and human considerations, redesigning work to enable human-plus-machine collaboration, and investing in data quality that fuels trustworthy AI. Organizations that treat AI readiness as a strategic capability rather than a quick fix, are far more likely to accelerate adoption, build trust, and drive meaningful outcomes.
Figure 6: Confidence in having the right skills across the right teams to deploy AI is tepid, at best
This chart measures the confidence that respondents have teams with the right skills that can design, build, test and deploy AI at scale. The confidence is lowest among managers, who are caught between the vision from executives and the realities on the ground.
At the heart of this transformation is people. Human-centered design is more than a moral imperative; it’s a business advantage. Transparent communication and inclusive involvement reduce resistance, strengthen retention, and unlock performance gains. Reskilling and redeployment emerge as smarter, more sustainable alternatives to layoffs, preserving institutional knowledge, and future-proofing the workforce.
This report introduces an AI growth index to help leaders assess their current AI readiness across mindset, people, process, and technology. In a world where AI’s pace only quickens, those who build strong foundations today will do more than keep pace; they will lead the future of work.
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We understand there’s a lot to explore in this report. That’s because becoming AI-ready is no small feat and this guide is here to help you through that journey. But if you’d like a quick tailored summary, copy and paste this prompt into the GPT of your choice, along with a copy of the report: “Summarize Mercer’s AI readiness report from the perspective of a [insert your role and title here]. Highlight the core findings, major themes and what actions I should consider taking. Keep the tone clear, analytical and action-ready, preserving all numbers exactly as stated.”
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