The Download: HR Technology Trends, May 2025

As technology reshapes how organizations attract, manage, and support talent, it’s more important than ever for HR leaders to keep up with the ever-evolving tech landscape. In this monthly roundup, we highlight five key developments in HR technology, along with insights on how to harness the power of these new trends.  

1. The New Power Couple: CHROs and CIOs

The Download: Biotechnology company and vaccine developer Moderna recently announced a merger of its technology and HR departments. This redesign of functions represents how tech leaders are working more closely with their HR colleagues to navigate the impact that technology is having on the workforce. It also follows Moderna’s announcement last year that it promoted CHRO Tracey Franklin to chief people and digital technology officer, a brand-new role.

The Upload: In a rapidly developing technology environment that’s altering the world of work, a CHRO-CIO partnership can play a major role in boosting HR’s technological capabilities. Whether by offering joint training sessions, creating cross-functional task forces, or just having regularly scheduled meetings to understand the overlapping needs of HR and IT, this mutually beneficial relationship can help move business needs forward.

2. Less Than 1 in 5 CEOs See Their CHRO as ‘Tech-Savvy’

The Download: How does your organization’s CEO view the technology knowledge of your HR leader? Less than one-fifth of CEOs (18%) said they’d consider their CHRO as “tech-savvy,” and only 7% described their CHRO as “AI-savvy,” according to a new Gartner survey. At the same time, over three-quarters of CEOs (77%) agree that AI is ushering in a new business era, meaning they view their key HR leaders as falling short of the required knowledge for the future of work. When asked what they view as the top two factors limiting AI’s deployment and use, CEOs pointed to the inability to hire enough skilled employees and the inability to calculate value or outcomes.

The Upload: AI is no longer just a tool. The technology has completely transformed the way organizations and their leaders approach work. It can feel daunting to play catch-up, but if anyone knows the value and importance of upskilling, it’s CHROs. Hiring new AI-savvy talent is important — and CHROs will be key there, too — but investing in current employees to provide them with the time and resources to learn AI and other new tech skills will go a long way in reshaping CEO’s conceptions around HR leadership and their tech- and AI-savviness.  

Resource: For help in developing a plan for employee upskilling, access SHRM’s How-To Guide: How to Conduct a Training Needs Assessment.
 

3. Can AI Make Performance Reviews Better? These CEOs Think So

The Download: A dozen CEOs and other company leaders featured in Fast Company agreed that AI carries great potential to create a smoother, fairer, and more efficient performance review process. From saving time to helping create personalized post-review development plans and objective benchmarks, AI was seen as a critical tool for streamlining many facets of performance reviews.

The Upload: For many organizations, the performance review process hasn’t evolved as quickly as it needs to, causing many leaders to turn to technology such as AI to transform this staple of people management. AI can be just one part of an overall plan to modernize and adapt outdated processes, lending a virtual hand that could lead to a more satisfying face-to-face performance conversation.

4. Break Through the HR Tech Rut with an Augmented Approach 

The Download: Too many CHROs are stuck in a “capacity-focused” approach when it comes to using technology, according to a new report from Gartner, How Augmented HR Unleashes HR Technology’s Business Impact. In other words, using technology to free up HR staff time has become the only goal in some organizations, rather than an augmented approach — using technology to do “new work in new ways.”

An augmented approach consists of three key recommendations for CHROs. First, use technology to engage stakeholders, providing a clear road map that shows how foundational efforts lead to business capabilities. Second, expand employees’ viewpoints toward new technologies to overcome a preservation mindset. Finally, formalize shared goals toward technology efforts, even creating new roles if needed, that enable subfunctional areas to work together, share resources, and align solutions.  

The Upload: It may come as no surprise that many HR teams are in a capacity-focused approach to technology. According to Gartner, they’re busy trying to perfect foundational systems to win over stakeholders, train HR staff harder on the technology’s capabilities, and hold process owners accountable for a better user experience. But with an augmented approach, CHROs can help their teams move beyond this vicious cycle and tap into technology for true business value.
 

5. Simplify HR Functions with AI Agent-Powered Tools

The Download: Lately, there’s been a significant shift toward AI agent-powered operating models, which lower the barrier for accessing the power of AI. For example, Salesforce’s newest offering, Agentforce for HR Service, aims to support HR teams by helping new employees answer questions related to onboarding as well as troubleshooting employee concerns. The service connects to HR teams’ existing human resource information systems and uses an AI agent to provide personalized support via Slack. Over time, HR teams can build AI agents to monitor paid time off, update personal information, submit expenses, and more.

The Upload: In the not-so-distant past, interfacing with complicated enterprise systems required specialized knowledge. Now, regardless of technical expertise, employees across departments — including HR — can easily train and leverage AI agents to boost productivity and address key employee concerns.  

Resource: Considering new HR technology? Here are seven essential practices to add to your playbook.