HR Leaders See AI Benefits but Struggle with Skills Gaps, Says Capterra Survey
Capterra’s 2025 HR Software Trends Survey reveals a growing reliance on AI in HR, alongside rising investments in workforce technology and an increasing focus on skills development and employee experience. However, 43% of HR leaders identify insufficient AI skills among their staff as a key obstacle to effectively using AI-powered HR software.
As companies face economic uncertainty, talent shortages, and the swift integration of AI, HR teams are adapting by leveraging technology to improve talent management. Nearly half (49%) of organizations using AI features in their HR software report better recruiting outcomes thanks to this technology.
1. AI Helps Address Rising Recruiting Costs
Hiring skilled professionals remains a top challenge for 44% of HR leaders this year, with 59% anticipating higher recruiting costs. To meet these challenges, many organizations are adopting AI-driven recruiting tools that automate routine tasks, improve candidate matching, and enhance the candidate experience.
Almost half (49%) of organizations currently using AI in HR cite improved recruiting results as a major benefit. Despite this, only 42% of HR leaders see recruiting software as a critical business need, even though recruiting difficulties are among their biggest issues. This gap highlights room for companies to adopt smarter, more efficient hiring solutions as 63% of HR leaders expect workforce growth in the coming year.
2. Training and Upskilling Are Urgent Priorities
Nearly half of HR leaders (45%) say training and upskilling employees is their main operational challenge for the next 12 months. Compounding this is the expectation that upskilling costs will rise for 68% of organizations.
Effective use of AI and multiple HR systems—on average, companies use four HR tools—depends on having skilled staff. Training new users on HR software concerns 48% of HR leaders, while 43% identify insufficient AI skills as a barrier to adopting AI technology.
Investing in talent analytics, learning management systems, and integrated HR platforms can help close these skills gaps and boost productivity. For HR professionals looking to build AI skills, resources like Complete AI Training offer courses tailored to various skill levels.
3. AI-Driven HR Tech Boosts Employee Satisfaction
Retaining talent remains a priority, with 36% of HR leaders citing it as a challenge. Contrary to concerns that AI might reduce human connection, the survey shows AI features can improve the employee experience.
Among HR software users leveraging AI, 43% report higher employee satisfaction or engagement, compared to 27% of non-AI users. Similarly, 39% of AI users see better retention rates, versus 25% without AI.
4. Concerns Persist About AI Risks and Data Security
As AI becomes more embedded in HR, 46% of HR leaders worry about evaluating its value and risks. Beyond skills shortages, concerns include obtaining quality data, AI literacy, and privacy issues.
Security remains a top priority: 67% consider it critical when selecting HR software, and 43% made HR purchases last year due to security concerns. These findings emphasize the need for strong data management, privacy protections, and clear policies to protect sensitive information.
Effective AI adoption in HR depends on balancing technology benefits with workforce readiness and security. Building AI skills and addressing risks are essential steps for organizations aiming to enhance recruiting, training, and employee engagement.
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