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A lack of access to up-to-date HR tools and resources can significantly hinder an organization’s ability to manage its workforce effectively and run its business. A 2024 survey by Gartner found that only 35% of HR leaders believe their current approach to HR technology is helping them achieve business objectives, yet access to the right technology remains a critical investment for organizations seeking a strategic edge.

A dominant 90% of CHROs said they expect AI integration in the workplace to become more or much more prevalent, according to SHRM’s 2025 CHRO Priorities and Perspectives report. Alongside this rise, 87% foresee artificial intelligence playing a critical role in boosting workforce productivity, highlighting significant confidence in its potential to drive widespread organizational benefits. In addition, AI is projected to make significant inroads within the HR function, with 83% of CHROs predicting a more prominent role for AI in managing HR tasks and processes. 

“The real challenge isn’t in determining whether to invest in HR technology — it’s in identifying the tools that align with your organization’s goals and ensuring you have the right processes and change management in place to support adoption,” said Tori Bowie, vice president and head of people technology at Avalara. “You need to be intentional. Not every solution is the right fit, and the flashiest tool doesn’t always solve your biggest pain points.”

Here are a few key questions to consider when evaluating HR technology to ensure you invest in the right areas.

What Is Our Base Line?

Filling knowledge gaps starts with understanding your HR technology base line, Bowie said. You can’t fully understand the knowledge gaps until you are aware of your capabilities and, just as importantly, your pain points.

“Where do we have duplicities? Am I approving the same thing six times?” asked Bowie. “Figuring out those inefficiencies will help you to get a better understanding of your current tech stack.”

According to a 2023 survey by Capterra, HR employees say 50% of their software systems perform overlapping functions, especially payroll and applicant tracking. On average, HR employees only use two-thirds of their tech stack regularly. The survey also found that HR software redundancies present additional challenges, such as the need to learn new systems (48%), reduced productivity (47%), and security concerns (46%).

Also crucial to solving HR tech knowledge gaps is recognizing that technology is not a magic solution. This is especially important for companies with a fragmented or incomplete tech stack.

Bowie advocates for adopting a process-first approach. Before implementing new technologies, re-examine your internal HR processes and determine where the weaknesses lie.

“You can’t replicate broken processes in a new tool and expect different results. If a process is flawed, moving it to a new tool won’t fix it — it will just be a broken process in a new system,” Bowie said.

Once you have a clearer sense of your current processes and tech stack, you can begin to solve knowledge gaps.

Is This Technology Going to Improve Processes?

Another way to maximize your organization’s HR technology investment and close knowledge gaps is to screen every tool in your current stack. Evaluating whether a tool is truly adding value means looking beyond its features and assessing its measurable impact on HR operations.

“It’s easy to get swept up in the excitement of a new tool, but the real work starts after implementation,” said Bowie. “You need to regularly ask tough questions about what’s actually delivering value — and what’s not.”

She suggests asking probing questions, such as:

• Are we actively using this tool, and is it meeting the goals we set when we purchased it?
• Is it delivering the cost savings, efficiency gains, or process improvements we expected?
• Has it had a measurable impact on employee experience and engagement?
• Are we tracking its effectiveness through clear KPIs — and what are those results telling us?

Two of the biggest risks of constantly implementing new technologies are data fragmentation and “change fatigue,” where employees become overwhelmed by a continuous cycle of new systems and processes. This can result in low adoption rates, inconsistent usage, and wasted resources.

“What happens is that maybe you are half a million dollars in the drain, but your utilization numbers are at 10% to 20%,” Bowie said.

To avoid this, organizations should develop a structured change management plan and auditing process that screens their HR technology as they go. By integrating rigorous evaluation metrics and proactive change management strategies, HR leaders can ensure their tech investments genuinely enhance processes, improve workforce management, and deliver meaningful ROI.

What Role Will AI Play?

Determining the right technologies for your organization involves leaning into the applications of modern HR solutions such as AI.

Yet, according to SHRM research, just 28% of HR leaders have implemented generative AI, the most commonly adopted form of AI, at their organizations. One potential reason for this is a lack of AI comprehension. SHRM found that over one-third (38%) of HR leaders have little to no understanding of AI, and more than half (58%) reported having only a basic grasp of AI fundamentals.

This slow adoption may explain the potential conflict between a human-centric function and tools that mimic human-created content. “How much do they want to balance automation with the human touch?” Bowie said.

When adopting AI, businesses must carefully weigh the potential risks and benefits. Possible downsides of AI adoption include ethical and compliance risks, biased content, and misinformation. On the benefits side, there is greater efficiency, data organization, and automation of repetitive tasks.

Enterprises like RingCentral have navigated this challenge by using AI to streamline and enhance their recruiting processes. The cloud communications company partnered with an AI-driven talent platform to automate candidate matching, outreach, and sourcing across all channels — replacing a slow, manual approach that had hindered hiring goals. This resulted in a 40% increase in the total candidate pipeline, a 22% boost in quality, and a 40% rise in interest from underrepresented groups.

“AI can be incredibly powerful, but only if it aligns with your organization’s values and long-term strategy,” Bowie said. “It’s not just about what the technology can do — it’s about what kind of workforce experience you’re trying to create.”

Investing in the ‘Right’ HR Tools

Determining the best investments in HR technology is a dynamic process. It requires a strategic approach that prioritizes efficiency, integration, long-term impact, and an ongoing commitment to continuous auditing and improvement.

Companies can successfully evolve with the market and meet workforce demands by gaining visibility into their current tech stack, taking a process-first approach, and adopting new tools that enhance HR functions.