Conduent Study Finds AI Can Streamline HR—But Employees Still Want a Human on the Other End

As HR teams accelerate AI adoption, employees are sending a clear message: automate the paperwork, not the empathy.

New research from Conduent Incorporated (Nasdaq: CNDT) underscores the growing tension between digital transformation and human connection inside the workplace. The report, Humanizing HR: The 2026 State of Experience in the New World of Work, reveals that while AI is rapidly reshaping HR operations, employees still overwhelmingly prefer human interaction when it matters most.

The study, conducted in partnership with Mercer, surveyed 765 employees and 254 HR professionals across three markets. It builds on Conduent’s 2023 findings, offering a longitudinal view of how employee expectations are evolving in an increasingly automated HR landscape.

The takeaway: efficiency wins points—but empathy wins loyalty.

AI Adoption Rises, but Human Preference Holds Firm

According to the report:

• 38% of HR leaders plan to use AI to improve administrative efficiency

• 35% plan to deploy AI for employee self-service

• 81% of employees still prefer human interaction for sensitive or complex issues

That 81% figure is only slightly lower than in the 2023 survey, suggesting that despite the normalization of AI chatbots and self-service portals, trust in human judgment remains largely intact.

This tension highlights a broader inflection point in HR tech. The first wave of digital transformation focused on access and automation. The next phase must reconcile speed with emotional intelligence.

The Loyalty Factor: HR as a Brand Touchpoint

One of the report’s most striking findings is the growing link between HR interactions and employee loyalty.

• 79% of employees say their interactions with HR directly influence how loyal they feel to their employer—up from 73% in 2023.

In other words, HR is no longer just an operational function. It’s a frontline brand ambassador.

When employees feel genuinely cared for and recognized, they report higher satisfaction, stronger engagement, and greater long-term commitment. Conversely, impersonal or poorly handled interactions can erode trust.

In a competitive talent market, that loyalty differential has measurable implications for retention and employer brand equity.

What Employees Still Value

Despite digital acceleration, employee expectations remain remarkably consistent:

• Convenience (77%)

• Competence (79%)

• Caring (72%)

The data suggests that modernization efforts cannot prioritize one dimension at the expense of others. Employees want frictionless digital access—but not at the cost of feeling understood.

From Digital Transformation to Experience Strategy

The study also signals a shift in HR modernization priorities.

Early-stage digital transformation focused on system implementation and automation. Today, HR leaders are emphasizing:

• Scalable technology footprints across HCM systems (59%)

• Intuitive, direct access to information and transactions (51%)

• Consolidated enterprise data with a single source of truth (51%)

• Closed-loop feedback processes that gather and act on employee input (48%)

This evolution reflects a more mature strategy: integrate systems, unify data, and build feedback-driven ecosystems.

Technology alone is no longer the differentiator. Experience design is.

Conni and the AI-Human Balance

Conduent’s own platform, Life@Work Connect, illustrates this hybrid approach. The suite integrates HR, health, retirement, and wellness data into personalized journeys, with an AI assistant named Conni handling many frontline inquiries.

Over a recent 90-day period:

• 86% of online inquiries were resolved by Conni

• 14% required escalation to a live agent

That split may represent the emerging sweet spot for HR automation. Routine questions—benefits navigation, policy lookups, transactional updates—are handled by AI. Sensitive or nuanced issues are escalated to human agents.

Conni is powered by Microsoft Azure OpenAI Service, providing enterprise-grade security and scalability—critical considerations for HR data environments.

Kimberly Marshall, Conduent’s Chief Commercial Officer, framed the balance succinctly: technology can elevate satisfaction, but human understanding remains essential.

The Bigger Picture for HR Tech

Conduent’s findings align with a broader trend across HR platforms. Vendors are racing to embed generative AI into workflows, but leading solutions increasingly emphasize “human-in-the-loop” design.

AI excels at speed, pattern recognition, and scalability. Humans excel at empathy, judgment, and trust-building.

The organizations that thrive may be those that architect systems around both strengths—automating the predictable while preserving the personal.

The Bottom Line

Conduent’s 2026 study highlights a critical reality for HR leaders: digital transformation and human-centered experience are not opposing forces—but they must be balanced deliberately.

Employees welcome efficiency. They appreciate intuitive self-service. But when the issue is complex, emotional, or career-defining, they still want a person on the other end.

In the AI age, humanizing HR isn’t about resisting automation. It’s about deploying it in ways that amplify—not replace—the human connection that drives loyalty and engagement.

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