iCIMS, a leading talent acquisition software company, has published its second annual State of the CHRO report, revealing a critical divide inside the C-suite. While 88% of HR executives say they are driving strategic change within their organizations, fewer than one-third (27%) of chief information officers agree.
The new report explores the top priorities and challenges keeping HR leaders up at night. It also details how they are partnering with CIOs on talent acquisition technology investments to foster more agile, future-ready workforces that support strategic business goals.
The misalignment is particularly evident as HR increases its investment in hiring and technology. Approximately 75% of HR leaders plan to invest more in TA this year, and 85% say TA technology is a higher priority today than it was just two years ago. But without stronger alignment with IT, these ambitions risk being undermined, stalling talent strategies, innovation, and limiting HR leaders from leading strategic transformation at scale.
“People are the heart of business success, and HR must be viewed as a strategic partner essential for connecting talent, technology, and business growth,” says Laura Coccaro, chief people officer at iCIMS. “In today’s competitive landscape, where AI and advanced TA technology are essential to attract and retain top talent, HR and IT must have a united front. This tight strategic alignment and execution is one of the most powerful levers to drive organizational success today.”
The report delivers practical takeaways for leaders and job seekers alike.
- For CHROs and TA leaders: The shift of HR leaders from operational to strategic talent advisors has arrived. While 90% anticipated this evolution last year, 88% of HR leaders now say they’re leading strategic transformation. Still, only 34% say their organization views TA as a core strategic function. The message is clear: HR must continue to strengthen ties with IT and demonstrate measurable business impact—from efficiency to growth to innovation.
- For CIOs: Nearly nine in 10 CIOs (89%) say HR-IT collaboration is essential to attracting top talent. Yet, strategic disconnect (51%), limited budgets and resources (48%) and a lack of shared understanding of tech capabilities (48%) are holding this partnership back. To close these gaps, CIOs must recognize their priorities are more aligned with CHROs’ than they may seem. By building on this common ground, they can develop more unified, forward-looking talent technology strategies that drive business growth.
- For job seekers: Six in 10 HR leaders are using AI across the entire TA process, reshaping how candidates are sourced, screened and hired. Meanwhile, CIOs have placed automation and AI at the top of their TA tech agendas (42%). Nearly half of adults surveyed (48%) say they plan to look for a new job this year, making digital fluency and AI ability increasingly important for candidates to differentiate themselves in a technology-driven job market.
The report also highlights how AI remains both an opportunity and an obstacle for HR leaders. Approximately 22% of CHROs rank AI as their top priority in TA. Yet, it remains a top challenge keeping them up at night. Tech leaders are moving in parallel, with 72% of CIOs planning to implement agentic AI within the next one to three years and 13% aiming to do so in less than 12 months.
