As we enter the second half of the decade, we can look back and see how quickly the CRA landscape has advanced and evolved. Shifting regulatory demands, artificial intelligence, and changing workforce expectations have driven significant adaptations across the industry. Despite this, we have noticed a surge in background screening demand. In the over 20 years since Peopletrail’s incorporation, we have scarcely seen more focus from our clients on reliable, comprehensive pre-employment screening. Drawing insights from the Professional Background Screening Association (PBSA) and other screening organizations, here’s a snapshot of where the industry stands and where it’s headed.
Current State and Growth
The pandemic seemed to strengthen resolve for background screening, not diminish it. Buzzwords like remote workforce, double-dipping, and quiet quitting have become increasingly common not just in word but in practice. These trends have contributed to a greater employer focus on employment/reference verifications, continuous monitoring, and even drug screening. More efficient access to criminal record data has allowed for criminal history retrieval to retain its place of importance during the hiring process. Because of this, CRAs in 2026 are even more growth-focused than in years past. PBSA reports steady expansion, with firms actively hiring sales talent to fuel growth. This reflects a market adapting to economic recovery, where accurate data is non-negotiable. Globally, the industry is projected to grow as digital verification tools gain traction, enabling CRAs to handle higher volumes and meet demand more efficiently.
Key Trends Shaping Screening
Several trends are redefining how we operate. The rise of AI and the slow emergence of “digital workers” in the CRA space raise questions about potential over-screening or bias. While industry innovations are plentiful, there is general caution about moving too far towards automated or heavily AI-reliant processes, particularly for tasks such as verification or social media analysis. We are still in the infancy of AI regulation, which could quickly interfere with technology-driven processes. For these reasons, the human element remains alive and well in the CRA space in 2026. Peopletrail, in particular, takes a human-first, technology-assisted approach intended to mitigate employer risk and ensure candidate privacy, while also being much more efficient than processes just five or ten years ago.
Regulatory Landscape
Regulations remain a core focus, with ongoing scrutiny from bodies like the Consumer Financial Protection Bureau (CFPB). The PBSA’s comments on the proposed Data Broker Rule last April underscore the need for clearer guidelines on data handling. At the federal level, preemption of state laws could standardize practices, but it creates tension in diverse markets. Internationally, nuances like Canadian criminal record check levels remind us of the importance of localized expertise. As always, compliance with the Fair Credit Reporting Act (FCRA) is paramount, ensuring reports are accurate and disputes are handled promptly. As far as regulation goes, 2026 is a year of both optimism and caution for CRAs, as many rules remain unwritten. Small regulatory changes can potentially cause significant setbacks for CRAs that lean too heavily on AI too quickly.
Challenges Ahead
Of course, we must discuss the economic uncertainty as we progress into the latter part of the decade and beyond. As of now, growth is still the forecast. However, economic pressures, such as inflation, may tighten client budgets, pushing CRAs to demonstrate value through efficiency. Some CRAs may be inclined to turn towards new, unproven AI strategies and solutions that could potentially introduce risk.
Outlook for 2026
Looking forward, 2026 promises innovation amid caution. PBSA’s upcoming conferences and webinars—such as the free NDASA session on marijuana reclassification—will be key to staying ahead. We anticipate greater emphasis on AI ethics and data privacy, with potential updates to PBSA accreditation standards. For Peopletrail, this means enhancing our quality management systems to align with these shifts, ensuring seamless service for your needs. Keep an eye on federal moves, as they could influence everything from report formats to turnaround times.
Key Takeaways
As we reflect on these trends, here are the essential points for CRAs and employers in 2026:
- Embrace Growth with Caution: The industry’s expansion, fueled by remote work and gig roles, offers opportunities but demands vigilance against fraud.
- Tech Integration is Key: AI and digital solutions are transforming efficiency, yet they require strong governance to address bias and privacy, aligning with future regulation.
- Regulatory Focus Remains Critical: With ongoing CFPB scrutiny and potential federal preemptions, proactive compliance—such as regular QMS audits—will help mitigate risks.
- Challenges as Catalysts: Over-screening and economic pressures will likely drive innovation. However, healthy innovation will require considerable industry expertise and future-focused strategy. Human-first, technology-assisted solutions are still the safest bet in 2026.
Thank you for your continued trust in Peopletrail as we navigate these industry dynamics together. Here’s to a year of innovation and compliance success.