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While most human resources leaders agree that artificial intelligence has changed how performance is evaluated, about half of them lag behind when it comes to evolving performance management that accurately reflects AI-augmented work. When AI strategy isn't connected to everyday work through goals, coaching, and development, adoption stalls and executive ambition fails to translate into results.
That's the major takeaway from the 2026 State of Performance Enablement report from performance management software company Betterworks. Titled "The Real ROI of AI: Empowering People to Align, Perform, and Grow," the research highlights a growing challenge for HR leaders: Organizations are investing heavily in AI, but most employees are not yet prepared, supported, or aligned to use it effectively. And that's putting business impact and ROI at risk.
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"AI is transforming how we work and the very nature of work itself," said Doug Dennerline, CEO of Betterworks. "But no amount of AI investment will pay off unless we empower the people closest to the work. Performance enablement gives employees clarity, coaching, and connection so that strategy becomes action, and ambition becomes real impact."
Here are four more key findings from the report:
- Readiness gap: Most executives (92%) feel ready to use AI, compared with just 51% of employees.
- Clarity crisis: Only 8% of employees say their company has communicated a clear AI vision.
- Perception divide: Nearly half of HR leaders (49%) rank AI use as a top influencer on employee performance, but only 9% of employees believe AI skills have become more important to their success.
- Performance disconnect: A full 90% of HR leaders say AI has redefined "high performance," yet only 42% of organizations reflect AI expectations in goals.
HR leaders are at a pivotal moment to earn credibility in the AI revolution, according to researchers at Betterworks. While AI strategy may be set at the executive level, HR determines whether it translates into meaningful, everyday work. Nearly two-thirds of HR leaders say performance management is essential to preparing the workforce for AI adoption — making performance enablement the most tangible way HR can turn AI ambition into results. By embedding AI expectations into goals, feedback, coaching, and development, HR can prove its value in shaping business outcomes — not just supporting change — they said.
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