According to the American Society of Employers’ new AI in HR Pulse Survey, 78 percent of Michigan employers are currently using AI in human resources or plan to within the next year, up from 24 percent in 2024.
The survey of 109 Michigan employers reveals a significant shift in AI adoption over the past two years. While organizations are increasingly embracing AI, however, much of its use remains informal, raising concerns about data privacy, accuracy, compliance, and employee readiness, according to ASE.
“AI adoption has accelerated dramatically, and employers are recognizing its potential to improve efficiency and support HR operations,” says Mary E. Corrado, president and CEO of ASE in Troy. “But implementing AI tools is only part of the equation. Organizations need clear policies, employee training, and human oversight to ensure these technologies are being used responsibly and delivering meaningful value.”
The survey found AI adoption is growing across organizations of all sizes. Among organizations with fewer than 100 employees, 63 percent are using AI in HR or plan to within the next year. That number increases to 85 percent for employers with 100 to 500 employees and 100 percent among organizations with more than 500 employees.
Despite the widespread adoption, 4 percent of respondents report that AI use is mostly integrated into formal business processes. Another 48 percent describe AI use as mostly informal, while 43 percent report a combination of formal and informal use.
Employers are finding the greatest opportunities for AI in administrative and communication-related HR functions. The survey found that 83 percent of respondents report individual AI use for drafting HR content, while 54 percent use AI in recruitment and talent acquisition through either integrated systems or individual applications.
Other areas seeing AI activity include training and development, predictive analytics, performance management, and employee questions and HR service.
Employers are beginning to see measurable benefits from AI. Among survey respondents:
- 64 percent report time savings.
- 32 percent report better data to support decision-making.
- 8 percent report cost reductions.
- 8 percent report improvements in employee experience.
- 21 percent have not yet seen measurable results.
While AI use is expanding, employer policies and employee training have not kept pace. Overall, 53 percent of respondents have a written policy governing employee AI use, although another 24 percent are currently developing one. Additionally, 19 percent of employers are very confident that employees are using only approved AI tools when working with company data.
Data privacy and security remain the leading concerns, cited by 72 percent of respondents, followed by reliability and accuracy (68 percent), legal and regulatory compliance (58 percent), and bias and fairness (57 percent).
In addition, 15 percent of employers provide formal, required AI training, while 20 percent offer optional training. More than one-third (34 percent) provide no AI training at all.
Despite growing AI adoption, employers are maintaining a cautious approach to using AI for employment decisions. Among organizations that use AI to assist with these decisions, 86 percent always require human review.
The survey also suggests that AI is not expected to result in widespread workforce reductions. When asked about AI’s anticipated impact on headcount over the next three years, 57 percent of employers expect no change, while 17 percent anticipate a slight decrease. Another 22 percent remain uncertain.
The AI in HR Pulse Survey collected responses from 109 Michigan employers. Respondents represented organizations of varying sizes, with 39 percent employing fewer than 100 people, 48 percent employing 100 to 500, and 13 percent employing more than 500 employees. The survey examines AI adoption, applications, governance, risks, and future plans, with comparisons to ASE’s 2024 survey.
The full report is available in the ASE Survey Library for ASE members; non-members can request a complimentary report here.
ASE is a non-profit, membership organization with offices Grand Rapids, Macomb, Muskegon, Novi, and Troy. The group offers member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk.
For more information, visit aseonline.org.
