At Herbein, we conducted a benchmarking survey of our clients and found something both unsurprising and alarming: the majority of organizations polled are not currently using AI in their talent management practices.
This is striking given the sheer volume of headlines, webinars, and vendor pitches proclaiming AI as the future of hiring. Yet, over three-fourths of our respondents are not using AI as part of their selection process.
With AI-driven talent acquisition positioned as a top trend in 2025, the reality on the ground looks very different. Most companies, it seems, are cautiously observing from the sidelines—unsure of when, how, or even if to engage. Some may not even realize that they’re already using AI in their hiring process. For instance, they may be unaware that AI is involved in screening applicants on recruiting platforms like Indeed.
So why the disconnect? And what does it mean for companies looking to stay competitive in a tightening labor market? Let’s unpack the reasons behind the hesitation.
Why So Many Companies Are Sitting This One Out
Despite the hype, several very real (and valid) concerns are holding organizations back:
1. Fear of Compliance and Legal Risk
The use of AI in hiring is under increased scrutiny. From the EEOC’s on again, off-again guidance on algorithmic bias to new legislation like New York City’s AI audit law, many companies worry that implementing AI tools could introduce liability rather than reduce it. Without a clear roadmap, the legal ambiguity is enough to stall decision-making.
2. Skepticism About Accuracy and Bias
HR and talent professionals are trained to think critically about fairness and adverse impact. Many fear that off-the-shelf AI tools may reinforce bias rather than remove it. Without transparency into how algorithms make decisions, organizations are understandably hesitant to entrust them with something as high stakes as talent selection.
3. Overwhelmed by the Options
The marketplace is saturated with AI-powered tools—resume screeners, interview platforms, chatbots, predictive analytics dashboards—and most of them sound alike. For organizations without a dedicated talent analytics team, evaluating these tools can feel like being handed the controls to a jet without a pilot’s license.
4. Cultural Resistance
Let’s be honest: hiring is still deeply human. For many managers, the idea of an algorithm suggesting who to hire can feel like a loss of control or professional judgment. Until the cultural mindset shifts from “AI replacing us” to “AI assisting us,” adoption of these new tools will remain slow.
What the AI Gap Reveals
In every technological shift, there’s a period where the landscape splits between early adopters and cautious followers. The current AI gap in talent management isn’t just about technology -it’s about mindset, risk tolerance, and strategic vision.
Companies who ignore AI entirely risk falling behind, especially as competitors begin using it to streamline processes, increase speed-to-hire, and make more data-informed decisions. On the other hand, companies that leap in blindly may end up with tools they don’t understand, can’t explain, and shouldn’t rely on.
What’s needed is a third path—an informed, practical, and human-centered approach to using AI in talent decisions.
The Third Path: Closing the Gap Safely and Strategically
Here are a few ways organizations can start bridging the AI gap without getting burned:
Start with Augmentation, Not Automation
Use AI to support (not replace) human decision-making. For example, AI can suggest interview questions based on a job description, summarize resumes, or flag potential inconsistencies. The final judgment should always rest with trained professionals. Use it as a helper rather than a decision-maker.
Vet Tools with the Same Rigor as Candidates
Ask hard questions of AI vendors: How is your model trained? What’s the adverse impact data? Is the algorithm explainable? If they can’t answer in plain English, it’s probably not the right fit.
Partner with Experts Who Understand Both Psychology and Technology
This is where we come in. At Herbein, we’ve spent decades helping clients make better decisions when it comes to hiring people. We’re not “AI evangelists,” but we are deeply invested in helping our clients make informed, fair, and legally defensible choices. That includes integrating AI thoughtfully - where it adds value and transparency.
Become an Internal Thought Leader
Even modest internal education about what AI can and can’t do can reduce fear and increase adoption. HR leaders who can clearly explain AI's role to hiring managers will be the ones who drive smarter implementation. It’s time to start paying closer attention to this topic. Make an effort to learn more from trusted professional organizations and experts.
A Competitive Advantage Hiding in Plain Sight
The AI gap is real, but it also represents an opportunity. While most organizations hesitate, the ones who lean in with intention have the chance to leap ahead. Not by replacing humans with machines, but by enhancing the quality, consistency, and insight of their people practices.
The talent solutions professionals within our Human Capital practice are dedicated to helping you cut through the noise, assess what’s right for your organization, and implement AI tools that align with your values, goals, and compliance needs. Let’s move past hesitation and toward informed action. Contact us today to start building a smarter, more human-centered approach to talent decisions.
Article Contributed by Gary Kustis, Ph.D.
