Key HR Technology Trends for 2026 — and How to Plan
Part of a series | 2026 HR Trends Series
Agentic artificial intelligence (AI) is rapidly transforming HR technology, driving new levels of automation and insight. To realize its value, organizations must pair innovation with strong governance and closer HR–IT collaboration. Those that align people, data and technology will gain a competitive edge in 2026 and beyond.
HR technology is a driving force behind how work gets done. As organizations grapple with which systems to adopt, how to protect sensitive data and whether HR and IT should merge or simply collaborate more closely, the stakes have never been higher. In our 2026 HR trends guidebook, we explore what this means for compliance, people and technology. This article is part of a series that explores each of these areas in greater detail.
In this article, we'll explore the technology trends that every HR leader should be watching in the coming year.
Agentic AI is becoming central to HCM systems
Organizations of all sizes are already using agentic AI: 48% of large businesses, 25% of midsized businesses and 4% of small businesses have adopted it. Chief human resources officers (CHROs) project a 327% growth in agent adoption by 2027, with 80% projecting that most workforces will have people and AI agents working together within five years. By 2028, Gartner predicts 33% of enterprise software applications will include agentic AI — up from less than 1% in 2024.
Organizations are using agentic AI to automate onboarding processes, simplify validations in payroll workflows and proactively generate insights from human capital management (HCM) data with clear recommendations. To harness its potential, align agentic AI with strategic goals such as attracting talent, enhancing HR efficiency and managing labor costs. Explore workflows ripe for automation where agentic AI can streamline processes and enhance decision-making.
"Agentic AI unlocks new frontiers of automation, coordinating multistep work and adapting to real-world variability," says Amin Venjara, chief data officer, ADP. "Human oversight provides purpose and guardrails, thereby clarifying objectives, approving critical actions and reviewing impacts. Together, they deliver scalable automation that's trustworthy, compliant and resilient when conditions change."
Building an effective data environment for agentic AI
Agentic AI is already influencing data management strategies and compelling leaders to prioritize seamless data flow between applications. Agentic AI systems use application programming interfaces (APIs) to gather information, make decisions and execute actions, moving beyond simple responses to proactive task completion.
"It's a question a lot of people are asking: How do agents cross ecosystems?" says Naomi Lariviere, chief product owner and vice president of product management. "Once you go beyond a given boundary, how do you know if you're executing in another system appropriately?"
Leaders must recognize that agentic AI introduces challenges around data quality, privacy and security. In fact, most IT leaders (79%) believe AI agents bring new security challenges, while 48% worry their data foundation isn't prepared and 55% aren't confident they have appropriate guardrails.
Strong governance helps protect AI investments
As agentic AI interacts with company data, robust governance is critical. Gartner predicts over 40% of agentic AI projects will be canceled by the end of 2027 due to inadequate governance, escalating costs and unclear business value.
As agents access data across various internal and external systems, carefully governing organizational data landscapes is becoming increasingly important. What a person may struggle to find, agents can find easily, creating heightened security and privacy needs.
Agentic AI unlocks new frontiers of automation, coordinating multistep work and adapting to real-world variability.
Amin Venjara, Chief Data Officer, ADP
HR and IT are increasingly interdependent
The relationship between HR and IT is becoming more interdependent as AI reshapes the workplace. A recent survey found that 64% of IT leaders predicted a complete HR-IT merger within five years, while 31% predicted far more collaboration without merging.
As agentic AI adoption increases, HR and IT must work closely together. HR leaders need IT's expertise in implementing complex technologies, while IT needs HR's insight into how tools affect people.
"IT is definitely a bigger part of the decision making than it has been in the past," says Tonya James, vice president of product management for global payroll, ADP. "What they care about are things like user management, data security, integrations and how the integrations work."
Both functions safeguard company data, incorporate people data into business strategy and influence how leadership responds to AI transformation. When HR and IT align, organizations can balance innovation with trust much more effectively.
AI as a competitive advantage
As HR technology continues to evolve in 2026, staying ahead of current trends is about building a foundation for integrated, secure and strategically sound AI practices across your organization. The organizations that thrive will be those that view their AI strategy as a catalyst for creating workplaces where people and innovation can flourish together.
What if your HR technology strategy could help your organization stand out?
Dive deeper: Download ADP's 2026 HR trends guide to explore how innovation is reshaping compliance, people strategies and technology in the workplace.
