UK Leads Europe in AI Adoption for HR as Investment and Employee Use Surge

Over 55% of UK organisations use AI in HR, leading Europe in adoption. AI enhances recruitment, learning, and support, but ethical concerns and human impact remain key challenges.

Categorized in: AI News Human Resources
Published on: Jun 13, 2025
UK Leads Europe in AI Adoption for HR as Investment and Employee Use Surge

UK HR Professionals Lead Europe in AI Adoption

Over half of UK organisations are investing in artificial intelligence (AI) to transform human resources (HR) functions. The UK now ranks as a European leader in AI adoption within HR, with 55% of organisations using AI to support workplace processes, compared to the European average of 38%. Research from SD Worx, a top European HR solutions provider, reveals that British employers are increasingly leveraging AI to streamline operations, enhance employee experience, and prepare HR practices for the future.

UK Businesses and Employees Drive AI Usage

Investment in AI for HR in the UK has jumped from 35% in 2024 to 55% in 2025. AI is mainly applied in:

  • Learning and Development (31%) – enabling personalised training paths
  • Recruitment (28%) – automating CV screening and interview scheduling
  • HR Support (28%) – AI chatbots providing quick answers to employee queries

Across these areas, the UK outpaces the European average, reflecting a focus on modernising HR. Moreover, 31% of UK HR employees regularly use AI at work, up from 21.6% last year and well above the 23% European average. They use AI for automating administrative tasks, content generation, data analysis, and personalising their own development. Nearly one in three UK AI users believe AI will fundamentally change how they work, compared to just 19.3% across Europe.

Despite strong interest and investment, less than half (41.7%) of UK respondents report significant outcomes from AI use in HR, indicating many are still early in their AI journey.

Ethical Concerns and Maintaining the Human Element

Alongside enthusiasm, challenges remain. Forty percent of UK HR professionals worry AI could reduce the essential human touch in people management. Another 39% are concerned about ethical issues, such as algorithmic bias and lack of transparency. Additionally, 38% report a lack of internal AI expertise, and 38% have concerns about data privacy and security. These concerns highlight the need for responsible AI practices and governance within HR.

UK Employers Focus on Practical AI Applications

UK organisations stand out by proactively rethinking HR through AI, rather than simply reacting to trends. AI is seen as a tool to improve efficiency, decision-making, and personalised employee support. Employers are investing early and experimenting across multiple HR domains, aiming for a balanced, human-centred approach that respects compliance and regulatory requirements.

How to Make AI a Valuable HR Partner

Establishing a clear AI policy is crucial. This should define who can use which AI tools, how to keep knowledge current, and how to retain expertise when roles or technologies change. Start with clear objectives: consider how AI can make work more meaningful, improve employee experience, or add value.

Upskilling HR teams is essential. AI must be applied fairly and transparently, following European AI legislation. Building trust with employees and stakeholders depends on this approach. Avoid treating AI as isolated pilot projects; instead, aim for an integrated system connecting recruitment, development, and retention.

About the International Survey

SD Worx conducted the ‘HR & Payroll Pulse’ survey in February 2025 across 16 European countries, including Belgium, Germany, Finland, France, Ireland, Italy, Croatia, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden, and the United Kingdom. The study surveyed 5,625 employers and 16,000 employees, providing a representative view of the labour market and AI adoption in HR across Europe.

About SD Worx

SD Worx is a leading European provider of HR and payroll solutions, serving approximately 95,000 organisations across 27 countries. With around 10,000 employees, SD Worx processes salaries for about 6 million workers and ranks among the global top five providers in this space. The company supports clients with software, services, and expertise in payroll, human capital management, and workforce management, helping organisations improve employee engagement and success.

For HR professionals looking to deepen their AI knowledge and skills, exploring specialised training can be valuable. Consider checking out comprehensive AI courses available at Complete AI Training for practical, role-specific learning.


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