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London, UK, 11 February 2025 – Avature, a leading provider of Human Capital Management (HCM) software for recruiting and talent management, today published findings from its in-depth study, “The State of the HR landscape in 2025”. Surveying HR leaders and practitioners on their priorities for the next two years, Avature found 60% of HR professionals consider automation and AI their top strategic priority, followed by acquiring top talent (45%) and addressing skill gaps and workforce planning (42%)
HR departments have evolved from being mere administrative centres to becoming key strategic partners within organisations, and amid the fast-paced advancements and adoption of AI in the workplace, HR departments are no exception, with 74% already using or planning to incorporate AI solutions. Among the most common use cases for integrating AI tools, were business leaders using or looking to use AI tools to identify potential candidates for specific roles (61%), followed by generative AI (56%) and chatbots (48%).
Forty-two percent of those that have implemented these technologies, report a measured increase in productivity, however, 27% are yet to see the positive results from implementing AI or machine learning (ML), highlighting the importance of well-defined strategies to maximise the potential of these technologies.
“AI has the power to transform how we work, but its implementation must be accompanied by a clear strategy,” says Dimitri Boylan, CEO of Avature. “With our study, we aim to highlight the importance of applying this technology in the HR sector to optimise talent allocation, improve employee and organisational experience, and significantly enhance retention strategies.”
The focus on using AI to improve talent acquisition is no coincidence. In fact, while 45% of respondents consider acquiring top talent their second priority, more than half say their efforts in this area could be “improved.” Moreover, the study also found that only a mere 6% of respondents believe their technology infrastructure fully fosters organisational agility. This presents a significant opportunity to optimise current approaches.
As the third priority, 42% highlight the need to address skill and competency gaps and improve strategic workforce planning. This underscores the importance of adapting to changing labour market demands, favouring skills-based approaches. Most organisations already apply (40%) or plan to adopt (36%) such strategies in their HR activities.
Among the areas where these approaches are driving the most progress, talent acquisition leads with 80% of respondents reporting advancements, followed by learning and development (69%) and internal mobility (46%). Through this study, Avature also aimed to understand the overall capability of HR technology in meeting organizational needs.
“Many HR departments still rely on technology solutions that fail to adapt to the experience of different stakeholders and their productivity needs. Additionally, the lack of autonomy in making technological decisions—often managed by IT departments—has resulted in tools that do not fully align with their real needs. Based on our experience, teams that take an active role in selecting and managing their own technology solutions can achieve a significant competitive advantage for their companies,” Boylan states.
Note to Editors: Additional Key Findings
- Workforce Planning
- 71% said that HR is either “actively involved” in workforce planning or “fully responsible for leading the process” at their companies.
- Data Literacy in HR Transformation
- 61% identified increased use of data analytics as one of the most significant changes in the industry.
- 63% believe using data for informed decision-making will be a key factor for future success.
- Meeting Business Needs
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- Only 6% of respondents believe their technology stack “fully supports” organisational agility.
- Concerningly, 22% admitted that their current infrastructure “somewhat or completely” hinders their ability to remain agile.
Methodology
This report draws on insights from a survey conducted with over 100 HR, TA and TM leaders and practitioners between September and November 2024. The survey examined respondents’ roles, responsibilities and organisational demographics, revealing that the majority of them (61%) hold leadership positions.
About Avature
Avature is an AI-powered platform for strategic recruiting and talent management. Founded by Dimitri Boylan, Avature brings consumer-grade internet technology and digital innovation to human resources departments globally. Avature solutions, which include candidate relationship management, applicant tracking, career sites, onboarding, internal mobility, social learning and performance management, are used by 110 Fortune 500 companies in more than 164 countries and 32 languages.
Avature delivers its services from its private cloud, located in data centres in the US, Europe and Asia and from the Public Cloud. Avature has offices in Buenos Aires, London, Madrid, Melbourne, Munich, New York, Paris, Shenzhen and Virginia. Find out more at avature.net.