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UK HR Leaders Prioritise Security Amid AI Growth, Skills Gaps, and Rising Recruitment Costs

As data breaches continue to dominate UK headlines, security has become the #1 priority for HR technology adoption, according to Capterra’s 2025 HR Software Trends Survey. The report, which gathered insights from over 3,200 HR professionals globally—including 296 in the UK—shows that 75% of UK HR leaders now view security as a critical feature when evaluating new software.

Even more telling? 46% say security concerns directly triggered their HR software purchases in the past year.

“With increased scrutiny and public trust at stake, HR leaders in the UK face mounting pressure to ensure that new software—especially those with AI features—meets the highest standards of data protection,” said David Jani, senior analyst at Capterra.

UK HR Teams Are the Most Wary of AI Privacy Risks

As AI adoption surges, so do concerns. 45% of UK HR professionals worry about privacy risks associated with AI-powered HR tools—more than in any other country surveyed. With more platforms integrating features like resume screening, chatbots, and predictive analytics, HR leaders are walking a tightrope between innovation and information security.

To mitigate risk, organisations are encouraged to:

  • Vet HR software vendors for robust security certifications and clear data policies

  • Implement access controls, encryption, and regular system audits

  • Provide ongoing staff training, especially as the average UK HR department now uses five different HR tools, increasing the potential attack surface

Skills Gap Threatens Safe AI Adoption

The report also underscores a critical bottleneck: lack of internal AI expertise.

  • 60%+ of UK companies are already using AI in HR software

  • But 42% say AI skill gaps are a major barrier to effective adoption

  • 54% cite training users on new HR systems as their biggest software concern

  • 46% say upskilling employees is their top operational challenge for 2025

Without proper training, employees may use AI-powered tools in ways that increase security vulnerabilities or misinterpret sensitive data. To close this gap, organisations should invest in learning management systems (LMS) and dedicated training programs to empower safe, confident use of advanced tools.

AI Still Delivers Tangible Benefits—Especially in Recruiting

Despite the challenges, AI is delivering clear returns for forward-looking HR teams.

  • 55% of AI software users report improved employee satisfaction and engagement

  • Compared to just 38% among those not using AI

  • 66% of UK HR leaders expect recruiting costs to rise in 2025

With cost pressures mounting, AI is helping reduce hiring friction through automated screening, better candidate-job matching, and streamlined communications—giving HR a strategic edge without ballooning overhead.

As AI-powered HR tools become more common—and more capable—UK organisations must treat data protection and employee training as inseparable from innovation. Security-first adoption and skill-building are no longer “nice to haves”—they’re mission-critical.

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