Investors Say Companies Combining Human and AI Capabilities Gain a Competitive Advantage, According to Mercer's Global Talent Trends 2026 Report

Mercer, a Marsh business (NYSE:MRSH) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the findings of its Global Talent Trends 2026 report.

This landmark survey of nearly 12,000 C-suite executives, HR leaders, investors, and employees worldwide, now in its 11th year, reveals that businesses are under pressure to deliver sustained performance. Yet, their ambitions are at risk due to a depleted workforce and organizational misalignment.

"Leaders are striving for growth this year, but to achieve it, organizations need every team performing at their peak," said Pat Tomlinson, Mercer's President and CEO. "Although executives view AI as the key to unlocking exponential performance and accelerated growth, realizing a true return on AI investments depends on intentionally redesigning work and building AI-enabled operating models that amplify the workforce's capabilities and experience."

Investors seem ready to reward companies that harness effective human-AI teaming, as 72% agree that companies that embrace the integration of both human and AI capabilities are positioned to gain a competitive advantage.

Talent scarcity today, yet reskilling on the horizon

The C-Suite is facing a talent paradox. On the one hand, with AI, organizations may need fewer people for the same work; on the other hand, there is not enough talent with the right skills for the future roles AI will demand. Talent scarcity is a significant issue for the C-suite, with over half (54%) identifying it as the top force influencing their people plans. Meanwhile, 59% of HR leaders report difficulty attracting talent with vital digital skills as their top people challenge.

Solving the talent scarcity problem presents leaders with a catch-22. As AI replaces, augments and transforms work, the skills required change dramatically, creating a need for reskilling and redeployment. If not managed well, this can deepen talent shortages and threaten workforce resilience and performance.

To address these challenges, 98% of executives are planning organizational design changes over the next two years, and 65% expect 11%-30% of their workforce to be redeployed or reskilled due to AI in that timeframe. C-suite executives are ready to double down on skills, with 63% agreeing they need to move towards skills-powered talent practices to prepare their organizations for the future.

Employees are acutely aware of the need to upskill and reskill, with 53% worried about lacking future-ready skills. When asked what they would hypothetically trade a 10% pay increase for, 63% of employees said they would trade a raise for opportunities to upskill in AI and digital skills.

Investors recognize that upskilling and reskilling are business imperatives, with 77% more likely to invest in companies committed to empowering employees through AI education and training.

Triple misalignment threatens growth

There is a disconnect among employees, HR, and the C-Suite in organizations that may block their path to peak performance. Employees are facing burnout, with only 44% reporting they are thriving at work, a sharp decline from 66% in 2024, even lower than during the Covid-19 pandemic. Further, employee concern about job loss due to AI has surged from 28% in 2024 to 40% in 2026. This collapse threatens productivity, as a depleted workforce, plagued by "FOBO", or fear of becoming obsolete, cannot deliver sustained performance.

Anxiety will impede productivity unless leaders address it. Most employees (62%) agree leaders underestimate AI's emotional impact, yet only 19% of HR leaders consider these impacts as part of their digital implementation strategy.

While the C-Suite's top people priority in terms of return-on-investment is to redesign work to incorporate AI and automation (63%), HR's top priority is to enhance the employee experience to attract and retain top talent. At a time when companies must transform for the human-machine era, the C-Suite and HR are not aligned on what drives performance.

For the C-Suite, the future of the HR function lies in managing human talent and digital agents side by side (82%). Perhaps for this reason, HR practitioners are considering ways to reinvent the function, with many saying that the HR and IT functions could move closer together.

A new leadership blueprint

Despite the billions of dollars spent on AI deployment, C-suite leaders are less confident today that their organization is well prepared to succeed in the human-machine era – 51% in 2026, down from 65% in 2024.

As companies prepare for an AI-driven future, inspiring change and adopting new ways of working have become critical. Investors recognize this, with 83% saying organizations led by adaptable, resilient executives will outperform peers during disruption.

Building digitally fluent, resilient leaders remains a challenge. While executives continue to prioritize capabilities like risk and strategy, employees value qualities such as communication and empathy. All these skills are essential, but they must be complemented by digital know-how to lead AI-driven transformation. Despite 75% of leaders acknowledging the need for their organizations to become more digital to compete, only 30% rate their digital agility as high. Closing this gap is vital, as AI fluency will become as critical to leadership success as financial acumen.

"Leaders are not short on vision, as they are already designing the future and have access to the technologies and insights needed to transform their organizations," says Ilya Bonic, President of Mercer's Career Practice. "The challenge now is execution at scale. Because in an AI-driven future, organizations that root their transformations in human-centric principles will win."

About Mercer's Global Talent Trends 2026

The report draws on insights from nearly 12,000 business executives, HR leaders, investors, and employees worldwide gathered via a survey conducted from September to October 2025.

About Mercer

Mercer is a business of Marsh (NYSE:MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information about Mercer, visit mercer.com, or follow us on LinkedIn and X.

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Amelia Woltering

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