Mercer's latest study uncovers the profound impact of artificial intelligence (AI) on recruitment, demonstrating that this technology can substantially enhance company operations. According to the report, 87% of companies affirm they do not have the needed HR and talent analytics skills, a gap that AI can help bridge. Approximately 43% of companies are using AI in talent acquisition, and of these, 97% report improvements. The study also points out that 67% of companies are not comfortable explaining AI decisions when challenged by regulators or legal authorities. Moreover, 60% think AI decisions are sometimes questionable. The report advises companies to balance automation with a human touch, where technology can handle routine tasks and free up HR for establishing the human connection, and stresses that building trust in AI is critical.