What’s Holding HR Back from Formal AI Adoption?

What’s Holding HR Back from Formal AI Adoption?

AI use in HR is increasing across the UK. In 2025, 66% of professionals said they have used tools like ChatGPT to write policies, generate job descriptions or support internal communications. Despite this, only 3.6% of HR departments have formally integrated AI into their systems and processes.

This informal use may seem practical, but it highlights a growing divide between experimentation and long-term strategy. Without formal adoption, organisations risk falling behind in areas like recruitment efficiency, data governance and candidate experience.

A Lack of Time and Resources

The most common reason HR professionals give for delaying AI adoption is a lack of time. Many teams are already stretched with administrative responsibilities and see AI integration as a project that requires more capacity than they currently have.

Liz Jones, Recruitment Director at people2people UK, says the concern is valid but short-sighted.

“We see time cited as the biggest barrier,” says Jones. “But formalising AI use actually saves time long-term. The our people2people 2025 UK Employment Trends Report shows that teams using integrated AI tools reduce administrative workload by up to 23 percent. That’s a significant gain for any HR function.”

Skills and Confidence Gaps

A second challenge is the skills gap. Many HR teams are unsure how to assess AI tools or ensure they are being used fairly and effectively. Without training, professionals are left guessing whether the tools they are using are making sound decisions.

“Confidence is a real issue,” Jones adds. “According to our report, fewer than one in three HR professionals feel confident evaluating AI outputs. That means the majority are using tools without fully understanding how they work, or how to manage bias and risk.”

This gap can create inconsistency across hiring, performance reviews and internal policies. It also limits HR’s ability to lead digital transformation initiatives.

The Policy Disconnect

Only a third of UK organisations have formal policies in place to manage AI use in HR. This lack of structure exposes companies to legal and ethical risk. As AI becomes more embedded in decision-making processes, clear policies will be essential.

“Our report found that organisations with AI policies in place saw higher levels of trust from both employees and candidates,” says Jones. “Without those guardrails, even well-meaning use can go wrong. Formal guidance protects both the business and its people.”

Recruitment Implications

AI is already transforming recruitment, from automating CV screening to helping personalise outreach. But without structure and oversight, these tools can reinforce bias and exclude strong candidates.

This is especially important as the UK faces a downturn in graduate hiring. According to People Management, graduate openings have dropped to their lowest level in seven years, with AI partially to blame.

“Hiring fewer entry-level roles does not mean less work,” says Jones. “It means that teams need to be smarter with how they assess and engage candidates. Formal AI adoption helps ensure that recruitment remains inclusive, consistent and aligned with business goals.”

Moving Forward

Formal adoption of AI does not need to be complex. The key is to start with simple, structured steps such as:

• Using HR platforms that include integrated AI tools
• Creating internal guidelines to support ethical and consistent use
• Providing training in AI literacy and bias awareness
• Reviewing AI-supported decisions with human oversight



The tools are already being used. The question is whether HR teams will take the lead in making their use strategic, secure and fair. Those that do will be better placed to support their people, meet compliance expectations and stay competitive in a changing labour market.