Flagship research launched at TechHR India 2025 reveals widening gaps in AI readiness, HR tech ROI, and capability building, signalling an urgent need for transformation clarity.
New Delhi, August 4, 2025: At TechHR India 2025, Asia’s premier HR and work tech conference, People Matters released its flagship annual research, The SHRPA State of HR Industry – Global Executive Insights 2025, uncovering a widening readiness gap between HR leaders’ confidence in change management and their preparedness for AI-driven transformation.
While 86% of HR leaders express confidence in navigating disruption, only 29% believe their organisations are truly ready for AI adoption — a disparity that could stall meaningful transformation. The SHRPA 2025 report draws on insights from over 1,200 HR and business leaders, technology providers, and investors across India, Southeast Asia, the Middle East, and Pacific-ANZ. These organisations collectively influence over $1.7 trillion in revenue and manage 5.9 million employees.
Key findings from the report include:
HR interventions fall short on critical business priorities, with impact gaps of up to 12%.
Only one in four organisations have fully adopted GenAI, with internal capability gaps emerging as the top barrier.
Despite ambitions, only 29% of HR teams currently prioritise AI capability development.
With 58% of HR leaders opting for a hybrid or best-of-breed tech strategy, HR tech budgets are set to rise.
Tech maturity has improved 26% over the past year, but 61% of leaders cite ROI realisation as a major obstacle.
Commenting on the findings, Pushkaraj Bidwai, CEO of People Matters, said, “SHRPA 2025 captures a clear shift in the questions HR is asking. It’s no longer about whether to transform, but how fast, with whom, and at what cost. While confidence in change readiness is high, the lack of AI preparedness is a red flag for real transformation. This report helps leaders zero in on where they must act next — with clarity, urgency, and a ROI-driven mindset.”
Another key theme of SHRPA 2025 is the rising influence of borderless talent and innovation ecosystems. As niche skills become central to competitive advantage, access to foreign talent and capital has surged in strategic importance — now ranking among the top three drivers of business strategy, surpassing inflation and policy uncertainty.
Despite an anticipated 10–25% increase in HR tech investments for 2025, execution gaps persist. While 62% of organisations now report progressive HR tech integration — up from 36% in 2024 — the ability to derive value is hindered by low adoption, unclear ROI frameworks, and limited internal capabilities.
Cheshta Dora, Head of Research and Content Strategy at People Matters, added, “The convergence of external volatility, workforce complexity, and rapid AI advancement is the real test for HR. SHRPA 2025 is designed to help leaders focus on what matters most — driving effectiveness, elevating experience, and realising value.”
The report identifies three strategic imperatives to bridge the gaps: reinforcing HR’s core agenda, strengthening capability mandates, and unlocking tech value realisation.
As organisations brace for 2025 and beyond, SHRPA 2025 provides not just a benchmark, but a blueprint for navigating transformation with clarity, capability, and commitment.
About People Matters:
People Matters is a leading media and research platform dedicated to the HR and work tech community. With a focus on knowledge-sharing, innovation, and leadership development, People Matters hosts some of Asia’s most prominent conferences and research initiatives, including the annual SHRPA report and TechHR.
