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ATD Report Shows Growing Confidence and Investment in Talent Development

The Association for Talent Development recently released its TD Executive Confidence Index along with the 2025 State of the Industry report, highlighting a positive sentiment among Talent Development professionals about the future of the TD function. The data points to increased organizational backing for building strong learning cultures, despite a decline in formal learning hours per employee.

Sponsored by Absorb, the report presents key trends in learning investments, training priorities, and emerging focus areas such as AI skills development.

Overall Outlook on Talent Development:

  • TD professionals express optimism about the health and future of the TD function.

  • Organizational support for learning culture is expected to grow.

  • The 2025 report confirms sustained investment in talent development despite some declining usage metrics.

Learning Usage and Investment Trends:

  • Average formal learning hours per employee fell to 13.7 in 2024, down from 17.4 in 2023, continuing a decline since 2020.

  • Direct expenditure per employee remained steady at $1,054, consistent over five years.

  • Organizations invested 2.9% of revenue in TD functions, the highest ratio in five years.

  • The average cost per learning hour increased 34% in 2024 to $165 from $123 in 2023.

Talent Development Workforce and Leadership:

  • Over one-third of organizations increased their TD headcount in 2024.

  • 75% of respondents confirmed TD function representation in senior leadership, up 10% from 2023.

Popular Training Content Areas:

  • New-employee orientation, mandatory/compliance training, and managerial/supervisory training remain the most common.

  • AI skills training, both technical and practical, grew significantly in 2024.

AI Skills Training Growth:

  • 55% of organizations offered AI technical skills training; 64% expect to increase it.

  • 55% provided AI practical skills training; 62% foresee growth in this area.

  • 75% of organizations plan to increase AI spending in the upcoming fiscal year.

The ATD 2025 State of the Industry report highlights a strong, growing commitment to talent development across organizations. Despite reductions in learning hours, investments remain steady with increased focus on AI skills training and leadership visibility of TD functions. This evolving landscape signals that talent development will continue to be a strategic priority in driving workforce capability and organizational success.