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Business Standard
03-07-2025
- Business
- Business Standard
AI and Upskilling Drive HR Transformation in 2025, Reveals Capterra India Survey
VMPL Gurgaon (Haryana) [India], July 3: Capterra India announced its 2025 HR Software Trends Survey, shedding light on the transformative shifts within India's human resources landscape. The comprehensive survey, which includes insights from 294 Indian HR professionals, highlights how organisations are leveraging technology to navigate rising costs, widening skills gaps, and the pervasive influence of Artificial Intelligence (AI). The survey identifies four critical trends shaping HR in India: 1. Upskilling is Now a Strategic Imperative The urgent need for training and upskilling current employees stands out as a top operational challenge, cited by 49% of Indian HR leaders for the next 12 months. 55% indicate that training new users on HR software is their primary software-related challenge. With 72% of Indian organisations already utilising AI features in their HR software (compared to a global average of 55%), the demand for AI-specific skills is rapidly increasing. 2. AI Success in HR Depends on Risk-Ready Implementation Over half of Indian HR leaders (56%) cite effective HR software implementation as a challenge, and 54% are concerned with assessing AI's value and risks. Security is a critical consideration for 67% of respondents when researching HR software, with 58% reporting that security concerns drove HR purchases last year. Data quality, understanding AI's decision-making processes, and addressing privacy issues are key concerns. 3. AI-Enabled HR Tools Drive Engagement and Retention Improving employee engagement (48%) and retaining employees (34%) are significant HR challenges for Indian firms. The survey reveals a significant positive correlation: 57% of HR software users with AI features report increased employee satisfaction or engagement, compared to 49% of companies without AI features. Similarly, 55% of AI feature users report increased employee retention, versus 38% for non-AI users. 4. AI Powers Scalable, Efficient Hiring Attracting, evaluating, and hiring skilled professionals remains a top HR challenge for 46% of Indian HR leaders, especially as 90% expect their workforce to grow in the next 12 months. AI-driven recruiting is instrumental in addressing this by automating routine tasks and freeing recruiters to build stronger candidate relationships. The survey found that companies using AI features in their HR software reported a 57% improvement in recruitment outcomes, compared to 44% for companies not using AI features. Similarly, AI adoption demonstrably enhances the employee and candidate experience, with 50% of AI-enabled organisations seeing improvements versus 41% of their non-AI counterparts. Even in performance management, AI offers a noticeable edge, with 33% of companies using AI features reporting improvements compared to 29% of those without. Commenting on the survey, Andrew Blair, analyst of the study, said: "India is leading the way in HR AI adoption compared to other countries in Capterra's global survey. As 90% of Indian companies anticipate workforce growth, scalable AI solutions are becoming essential--not just for efficiency, but for enabling HR teams to meet rising talent demands with agility." Moreover, details concerning Human Resource Management Software are available within our catalogue. For further information, please visit About Capterra Capterra is the #1 B2B marketplace for organisations to find the right software. Our platform connects buyers to over 2 million verified user reviews about products spanning 1,000 categories and offers actionable, objective insights and recommendations to help them find the best product for their specific business needs.
Business Wire
17-06-2025
- Business
- Business Wire
HR Leaders Cite AI Benefits But Say Skills Gaps Are a Barrier to Effective Use, According to Capterra
ARLINGTON, Va.--(BUSINESS WIRE)--As organizations worldwide grapple with economic uncertainty, skills shortages, and the rapid adoption of AI, Capterra's latest research reveals how HR leaders are adapting and how they are leveraging technology to transform talent management. HR is leaning on AI as recruiting costs rise. According to Capterra's latest research, 49% of organizations currently using AI features in their HR software cite improved recruiting outcomes among the most significant benefits of using this technology. Share Capterra's 2025 HR Software Trends Survey of over 3,200 HR professionals in 11 countries points to four key areas where HR leaders are investing and innovating, offering a practical guide for organizations seeking to futureproof their workforce. 1. HR Leans on AI as Recruiting Costs Rise Forty-four percent of HR leaders say hiring skilled professionals is one of their top challenges this year, and 59% expect recruiting costs to rise. To address these challenges, organizations are turning to AI-driven recruiting solutions, which can help automate routine tasks, improve candidate matching, and enhance the overall candidate experience. In fact, 49% of organizations currently using AI features in their HR software cite improved recruiting outcomes among the most significant benefits of using this technology. Nearly two-thirds (63%) of HR leaders expect to grow their workforce in the coming year. Yet, only 42% currently rate recruiting software as a critical business need, despite being one of the top challenges for organizations. This highlights a significant opportunity for companies to leverage advanced tools for smarter, more efficient hiring. 2. AI and Software Skills Gaps Prompt Urgent Focus on Training Nearly half (45%) of HR leaders cite training and upskilling current employees as their main operational challenge for the next 12 months. And, it's made more difficult as 68% also expect upskilling costs to increase. Effective software integration and skilled staff are crucial as companies juggle multiple systems, averaging four HR tools each. Training new users on HR software is the main software-related concern for 48% of HR leaders. Additionally, 43% point to insufficient AI skills on staff as a barrier when adopting AI technology. The survey suggests that investing in talent analytics, learning management, and integrated HR systems can help organizations close skills gaps and drive productivity. 3. AI-Powered HR Tech Leads to Greater Employee Satisfaction Employee engagement remains a top priority, as 36% of HR leaders cite retaining talent as a challenge this year. The survey finds that, despite being commonly perceived as a deterrent to authentic human connection, AI features can enhance the employee experience. Notably, 43% of HR software users leveraging AI features report increased employee satisfaction or engagement, compared to just 27% of those not using AI. Similarly, 39% of AI users see improved retention, versus 25% of non-users. 4. Despite AI's Benefits, HR Leaders Express Concern with Risks As AI becomes more embedded in HR processes, 46% of HR leaders are concerned with assessing AI's value and risks. Aside from having skilled staff, the main concerns regarding AI are obtaining quality data, AI literacy, and addressing privacy issues. Security remains paramount: 67% consider it a critical feature when selecting HR software, and 43% report that security concerns triggered HR purchases last year. The findings highlight the need for robust data management, privacy safeguards, and clear policies to ensure compliance and protect sensitive information. 'As workforce needs evolve, adopting the right HR technology is only the first step,' says Bruno Peláez, senior analyst at Capterra. 'Success depends on organizations keeping people at the center of every technology decision, building AI skills to futureproof their workforce, and implementing strategies to engage and retain them.' For more insights, read the full report and visit to compare software products on the Capterra Shortlist. About Capterra Capterra is the #1 B2B marketplace for organizations to find the right software and services. Our platform connects buyers to over 2 million verified user reviews about products and services spanning 1,000 categories and offers actionable, objective insights and recommendations to help them find the best product or service for their specific business needs.
