How AI is redefining HR tech in 2025
Welcome to TalentTech Weekly! This week, we're diving into Josh Bersin 's latest insights from his "HR Tech 2025: AI Redefines the Landscape" report. AI is at the forefront of change in HR, driving advances in recruitment, employee development, and HR processes. From predictive analytics to personalized employee experiences, the report outlines how AI is reshaping the way HR leaders manage talent.
85% of employers who use AI in recruitment report that it saves them time
Recruitment is often seen as the entry point for AI in HR, and its impact is undeniable. AI-driven tools are crucial in candidate screening, predictive hiring, and candidate engagement. Companies like Workday, SAP, and Oracle are embedding AI capabilities directly into their platforms, with Workday’s acquisition of HiredScore standing out as a key example. This move gives Workday access to an AI-powered scoring system that accelerates candidate assessments and increases recruiter efficiency.
The report highlights how AI-enabled sourcing platforms like Eightfold AI, SeekOut, and Beamery transform how companies identify talent. These platforms analyze job market data and use machine learning models to predict candidate fit. Paradox’s conversational AI has revolutionized recruitment by reducing time-to-hire from weeks to hours, engaging candidates in real time and automating scheduling and interview coordination. According to SHRM, 5% of employers who use AI in recruitment report that it saves them time, while 86.1% of recruiters say it accelerates the hiring process
By 2025, most applicant tracking systems (ATS) will feature AI-driven talent intelligence capabilities. This shift will enhance candidate experience, reduce hiring timelines, and allow organizations to make smarter hiring decisions with greater speed and accuracy.
Up to 40% of the workforce may need to reskill due to the implementation of AI and automation within the next three years
The skills gap is a major concern for organizations worldwide, and AI is at the center of efforts to close it. AI-driven insights are enabling skills gap analysis, upskilling, and reskilling initiatives. The report predicts that by 2025, AI-powered talent analytics platforms will become essential tools for HR leaders aiming to future-proof their workforce.
According to the World Economic Forum, up to 40% of the workforce may need to reskill due to the implementation of AI and automation within the next three years. This shift is driven by the need for technical proficiency, adaptability, and human-centric skills to complement AI systems
For example, Eightfold AI’s talent intelligence platform allows companies to map internal skills and identify future skills needs. This supports workforce planning, internal mobility, and succession planning. Talent marketplaces like Gloat and internal career platforms are also seeing rapid adoption, with AI driving personalized career pathing and enabling employees to explore stretch assignments and gig work within their current organizations.
AI’s role in learning and development (L&D) is also accelerating. Tools like Docebo, Uplimit, and Synthesia are using AI to automate content creation and delivery. AI-powered learning paths can now be personalized for each employee, addressing individual learning needs and promoting continuous development. As highlighted in the report, L&D teams will increasingly serve as "experience designers" who leverage AI to curate and deliver content at scale.
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Emphasis on the personalized employee experience and continuous feedback loops
The employee experience is becoming more personalized, thanks to AI’s ability to deliver tailored interactions. The rise of AI-driven assistants like Workday Assistant and SAP’s Joule marks a shift towards employee-centric HR service delivery. For instance, ADP’s Lyric HCM platform employs AI to understand user behavior, personalize employee dashboards, and recommend activities, creating a frictionless experience for employees.
AI-powered chatbots, like those deployed by Providence Health, offer 24/7 support for employee inquiries. These systems provide instant answers on HR policies, payroll, and benefits, significantly improving the employee experience. As the report notes, EX (employee experience) systems will become essential for enhancing engagement and well-being, with conversational AI playing a central role.
AI is also transforming feedback mechanisms. Continuous feedback platforms will be enhanced with AI-driven sentiment analysis, enabling real-time insights into employee sentiment. By 2025, companies will rely on AI to detect patterns in employee feedback and proactively address issues, leading to higher employee engagement and reduced attrition.
The Road Ahead: Preparing for Digital Transformation
The future of HR is being shaped by AI-driven automation and digital transformation. By 2025, core HR platforms from vendors like Workday, SAP, and ADP will have AI embedded into every aspect of their offerings. This evolution will reduce reliance on training materials and make HR systems more intuitive and accessible for all employees.
The automation of HR processes will extend beyond traditional HCM (human capital management) platforms. Talent analytics, workforce planning, and skills assessments will be driven by predictive analytics, enabling HR leaders to anticipate future needs and design proactive interventions. The report emphasizes the need for HR teams to embrace continuous learning to keep pace with AI’s evolution.
To prepare for the future, organizations should focus on the following key actions:
Written by: Alexandra Paasch