Capterra conducted a study with 3,200 HR professionals worldwide that reveals the biggest HR challenges for 2025 and how HR tools and AI can solve them.
Key takeaways from the HR study:
- Training and upskilling are the biggest challenges for HR leaders this year. The rapid pace of technological change and evolving job requirements are creating a continuous skills gap within organizations. The gap between what employees can do and what the company needs must be continuously closed through ongoing training. Digital tools (LMS, skill management software, and knowledge base) are important to upskill employees, especially with an emphasis on software and digital skills, as HR leaders report that their biggest HR software struggle is training new users.
- Attracting, evaluating, and hiring skilled professionals is the 2nd biggest challenge. The survey results show that recruiting is more successful with AI: 49 percent of companies with AI-supported HR software achieve better recruiting outcomes, compared to 32 percent without AI. 40 percent improve their candidate experience with AI compared to 29 percent without AI features in their HR software.
- AI increases employee engagement and satisfaction: 43 percent of companies with AI capabilities in their HR software report higher satisfaction and engagement (27 percent without AI). AI can improve work-life balance by making more engaging, high-value work possible through automation and discovering growth opportunities and personal-interest-focused projects.
- Even though AI has many benefits and can transform HR processes, retention, and satisfaction, it is important to avoid risks:
- HR professionals need to understand why AI is used, its capabilities, its limitations, and the ethical implications, and
- What data the AI needs to be effective and assess their own data's quality, completeness, and structure.
- It’s important to establish robust internal policies and ensure transparency with associates regarding data collection and AI usage, and
- Establish clear processes and assign responsibilities for regularly auditing AI performance, identifying potential biases, and correcting or retraining models.
Meet the Presenter
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Ines Bahr
Ines Bahr is a Senior Content Analyst at Gartner with 10 years of experience in content marketing and tech trends. She specializes in HR and over the years she has been covering project management, cybersecurity, and digitalization strategies. Bahr investigates new trends in markets around the world and is passionate about helping organizations drive digitalization forward and be innovative. Her digitalization tips are based on more than 30 studies she has conducted in several countries. Her primary research helps executives understand the latest trends that are critical to their business. Her research has been published in multiple-tier 1 media publications, and she has spoken at several events, including podcasts and conferences.
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