The Download: HR Technology Trends, August 2025
Our monthly roundup of key developments in HR technology, plus insights on how to harness the power of these developments.
As we progress further into 2025, the HR technology landscape is maturing. Gone are the days when artificial intelligence and digital tools were experimental side projects; they are now central to strategic HR execution. This month’s roundup of HR technology trends — focusing on AI agents, talent premiums, gray work drag, workplace friction, and outcome-centric tech — all signal one imperative: HR must evolve from systems steward to strategic orchestrator.
1. AI Agents Accelerate Productivity Gains
The Download: AI agents are doubling workforce capacity in some cases, delivering up to 50% productivity gains in departments such as IT, finance, and tax, according to PwC’s mid-year update on its 2025 AI Predictions. However, trust issues among the workforce often hold back AI progress. According to PwC’s AI Agent Survey, more than a quarter of executives (28%) ranked lack of trust as their top challenge to realizing the full value of AI.
The Upload: For CHROs, this means designing future-ready roles and workflows where AI agents augment and amplify human effort. Talent strategies should now account for not just human headcount but “agent capacity.” In addition, HR systems must embed interoperability: aligning infrastructure, learning frameworks, and performance metrics to reflect a blended human-AI operating model.
2. AI Skills Drive Real Compensation Premiums
The Download: A recent Lighthouse study that analyzed over 1.3 billion job postings indicated that roles requiring AI skills offer a 28% higher salary — equating to nearly $18,000 more annually — than comparable roles without those capabilities. Meanwhile, SHRM research also revealed that rising demand for technology skills in HR is driving notable pay incentives. Over the past year, HR roles requiring technology skills earned an estimated average premium of $23,775 compared to similar roles without those skills.
The Upload: HR leaders must swiftly align upskilling and recruitment strategies with this reality. If AI competencies are reshaping reward structures across industries, CHROs should rethink total rewards frameworks, invest in targeted AI learning pathways, and ensure internal talent can both earn market-competitive compensation and deliver AI-enabled value across the enterprise.
3. Gray Work: The Hidden Productivity Tax
The Download: Quickbase’s 2025 Gray Work Research report disclosed that business professionals said their organizations have increased their investments in productivity tools, rising from 66% in 2024 to 80% in 2025. However, 59% of professionals reported that it felt harder than ever to be productive. What’s behind the struggle? “Gray work,” the hidden inefficiencies caused by disconnected systems and manual workarounds, which often costs employees substantial time and sparks frustration.
The Upload: CHROs need to see gray work as a silent organizational cost resulting in disengagement, wasted labor, and poor ROI on HR tech investments. Addressing this problem involves auditing end-to-end workflows, promoting tool consolidation, and championing integrated platforms that unify data and reduce manual friction. HR must lead the charge in defining what “meaningful work” looks like and help employees reclaim time for strategic impact.
4. Workplace Tech May Be Causing Workforce Friction
The Download: Dayforce research found that more than two-thirds (69%) of workers recently surveyed from around the globe say their organization uses too many technology platforms. Meanwhile, nearly the same amount (66%) agrees that adopting new technologies at work often reduces, rather than enhances, efficiency instead of improving it.
The Upload: Friction in operational infrastructure is a top barrier to strategic HR execution. CHROs might consider creating a “friction audit” across systems and processes — identifying redundancies, complexity hotspots, and adoption barriers. This can inform a unified technology roadmap, championing modern, consolidated systems that empower employees to focus on high-value outcomes instead of navigating disjointed tools.
5. Top HR Products Showcase Agentic AI’s Power
The Download: The winners in the 2025 Top HR Products of the Year competition marked a pivotal shift: AI is no longer a novelty feature but a mission-critical differentiator. And while last year’s winners largely showcased a focus on generative AI, this year’s star across the board was agentic AI, which can power solutions capable of multi-step tasks and cross-functional impact.
The Upload: No matter how many exciting new technology tools reach the market, the goal for CHROs remains: HR tech must deliver business outcomes, not just flash. When evaluating or piloting HR tech, leaders should demand AI that’s intentional and outcome-oriented — prioritizing scalability, personalization, and measurable impact.
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