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HomeinterviewsHR Technology Trends 2024-2025: AI, Replacements, and Workforce Shifts

HR Technology Trends 2024-2025: AI, Replacements, and Workforce Shifts

The 2024-2025 HR Systems Survey by Sapient Insights Group, now in its 27th year, provides an in-depth look into HR technology trends across 3,318 organizations worldwide. The report spans 14 technology segments, covering topics from HR technology ecosystems to AI adoption and workforce demographics.

Key Findings and Insights

  • Comprehensive Survey Scope
    • Survey respondents from 3,318 global organizations
    • Data on 274 technology vendors
    • 248-page report detailing HR technology, budget trends, and user experiences
  • HR Technology Replacements
    • 10% of organizations are planning to replace HRMS; 8% have active RFPs
    • 28% of enterprises (5,000+ employees) expect HRMS replacements, a significant increase from 10% last year
    • Trend driven by increased flexibility and vendors targeting new market segments
  • AI Adoption and Challenges
    • Only 15% of respondents aware of AI capabilities in HR tech
    • Barriers: lack of skills, privacy concerns, data quality, and governance issues
    • Companies leveraging AI report a 7–10% improvement in business, talent, and HR outcomes
    • Emerging use cases include career pathing, personalized learning, and performance management
  • Shifting Workforce Demographics
    • 58% of HR tech leaders have less than three years of experience
    • Generational shift: Gen Z now forms 17% of workforces
    • Need for vendors to provide stronger support and educational resources

The 2024-2025 HR Systems Survey underscores the evolving HR technology landscape, with increased adoption of AI and shifts in workforce demographics. As HR tech ecosystems grow in complexity, there is a clear call for both innovation and enhanced support from vendors to address the needs of diverse HR teams.