WHAT PEOS ARE GETTING RIGHT AND WRONG ABOUT AI

AI is everywhere. It can write an email. Summarize a meeting. Research a prospect. Create content. Analyze information. Help prepare for a sales conversation. For PEOs, the possibilities are significant.

But simply using AI and using it strategically are two very different things. At LeadG2, we recently took a closer look at PEO responses from our Revenue Enablement in the AI Era research. We wanted to understand how PEO organizations are using AI, where it is helping, and where some of the biggest opportunities may still exist.

One finding immediately stood out. Ninety percent of PEO respondents cited a lack of training and internal expertise as their number-one barrier to AI adoption. The technology may be moving quickly. But for many PEOs, the bigger challenge is figuring out how to put it to work in the right places.

EFFICIENCY IS A GOOD PLACE TO START

PEOs are already finding practical uses for AI. One of the most common applications among respondents was automating content and follow-up emails. That makes sense. These repetitive tasks take time, and AI can help sales and marketing teams work more efficiently. But efficiency is only part of the opportunity.

Our research found that 60 percent of PEO respondents identified demonstrating ROI and value to decision-makers as a top sales challenge. Half cited differentiating from competitors or brokers, and half pointed to navigating long sales cycles and multiple stakeholders. Yet creating personalized proposals or ROI models was among the least common ways respondents were using AI.

That’s an interesting disconnect. PEOs are using AI to make some of the easier work faster while one of their hardest sales challenges remains largely untouched.

THE BIGGER OPPORTUNITY MAY BE FURTHER DOWN THE FUNNEL

A PEO sale can involve an HR leader, CFO, and business owner, and each may look at the decision differently. AI can help sellers prepare for these conversations, organize and analyze account information, personalize messaging, and build stronger value narratives for individual decision-makers.

But AI should support expertise, not replace it. In our research, personalized pitch decks and HR thought leadership ranked among the most effective content for winning new PEO clients, followed by industry case studies.

Buyers still value expertise, credibility, and information relevant to their specific situation. AI can help PEO teams deliver that expertise more efficiently and personally, but the expertise still has to be there.

ALIGNMENT COMES BEFORE AUTOMATION

Technology alone won’t solve an alignment problem. Eighty percent of PEO respondents said sales and marketing were only partially aligned on ideal customer profile definitions and messaging. Only one in 10 reported being fully aligned.

Consider what happens when AI is added to that environment. If marketing has one definition of the ideal customer and sales has another, AI doesn’t fix the disagreement. If teams aren’t aligned on the problems they solve or the value they provide, AI doesn’t create that strategy for them. It may simply help everyone produce more inconsistent messages, faster.

Before automating more, PEOs should get clear on the fundamentals: Who are our best prospects? What matters most to them? What problems are we uniquely equipped to solve? How should that story be communicated throughout the buyer’s journey?

GOOD AI NEEDS GOOD DATA

AI depends on the information behind it. Only two in 10 PEO respondents reported having a CRM in their revenue enablement stack. None said they were very confident in the accuracy of their CRM or AI data. That matters.

PEO sales can involve long buying cycles, multiple contacts, and significant account history. Without reliable data, it becomes harder to maintain visibility into those relationships and limits what AI can effectively do. Lead scoring, account-based targeting, renewal forecasting, and other advanced AI applications depend on useful information.

Before investing in the next AI tool, ask a more basic question: Do we trust the data we’re giving it?

DON’T FORGET THE PEOPLE

One of the most important findings comes back to the people using the technology. Sixty percent of PEO respondents said they are still in the early exploration stage with AI. Only one in 10 said AI is deeply integrated into daily workflows. And 90 percent pointed to a lack of training and internal expertise as the biggest barrier to adoption.

The next investment in AI may not need to be another tool. It may be training. It may be establishing clear guidelines for how AI should be used. It may be helping employees identify where AI can make their work better and where human judgment still matters most. Technology becomes more valuable when people know what to do with it.

START WITH THE PROBLEM, NOT THE AI

There will always be another AI tool to consider. The goal doesn’t have to be adopting all of them. Instead, PEO leaders can start with the business problem.

Where are sellers getting stuck? Where are prospects struggling to see value? Where are teams spending time on repetitive work? Where could better information help someone make a stronger decision? Then ask whether AI can help.

The PEOs that get the most value from AI may not be the ones using the most technology. They may be the ones most intentional about where they use it, give their teams the training to use it well, and have the data and alignment needed to support it.

The question isn’t simply, “Are we using AI?” A better question may be: “Are we using AI to solve the right problems?”

About the research. The PEO findings in this article are based on additional analysis of PEO industry participants in LeadG2’s 2025 Revenue Enablement in the AI Era survey, which included 154 total respondents. Because the PEO findings represent a subset of the larger study, they are best viewed as directional insights and conversation starters rather than definitive industry benchmarks.