While 86% HR leaders feel change ready, only 29% are truly AI ready: Report
Based on insights from 1,200+ leaders across APAC and the Middle East, the People Matters report uncovers emerging gaps in AI readiness, tech value realisation, and HR’s effectiveness signaling a crucial pivot point for HR transformation in India.
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While an overwhelming 86% of HR leaders feel confident about their organisation’s ability to adapt to disruption, only 29% say they are truly ready for AI adoption, exposing a readiness gap that could hinder long-term transformation outcomes.
According to the People Matters “The SHRPA State of HR Industry – Global Executive Insights 2025" report, Only 1 in 4 organisations have fully adopted GenAI and 58% of leaders are opting for hybrid or best-of-breed HR tech models.
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The report draws on the insights from more than 1,200 survey responses and 30+ in-depth interviews of HR and business leaders, technology providers and investors across India, Southeast Asia, the Middle East, and Pacific-ANZ.
Representing organisations that collectively influence over $1.7 trillion in revenue and 5.9 million employees, the report delivers actionable insights into the forces shaping the next 12 to 18 months in HR and work tech.
Commenting on the report, Pushkaraj Bidwai, CEO, People Matters, said, “The report captures a clear shift in the questions HR is asking today. It’s no longer about whether to transform. It’s about how fast, with whom, and at what cost. The data tells us while leaders are confident about navigating change, there’s a significant gap when it comes to AI readiness.
If we don’t address that now, it will hold back real transformation. This report is meant to bring clarity, not just on what’s changing, but on what HR and business leaders must do next to stay relevant, resilient and ROI-focused.”
Among the most significant shifts outlined in the report is the rising influence of borderless talent and innovation ecosystems in driving business growth. As access to niche skills becomes a key competitive differentiator, organisations are being forced to rethink their approach to leadership, AI capabilities, and workforce agility.
Notably, access to foreign capital and talent has jumped five spots since last year to become one of the top three factors shaping business strategy, overtaking concerns like inflation and policy uncertainty.
Despite growing investments in HR tech, with a 10–25% rise projected for 2025, the report points to critical execution gaps. While 62% of organisations now report having integrated, progressive HR tech systems (up from 36% in 2024), a lack of internal capabilities, unclear ROI frameworks, and weak adoption continue to stall value realisation. In fact, only 1 in 4 organisations have fully adopted GenAI, with most citing capability gaps as the key barrier.
Cheshta Dora, Head of Research and Content Strategy at People Matters, noted, “The real test for HR lies ahead. With external volatility, workforce complexity and AI acceleration converging, organisations cannot navigate borderless talent and innovation ecosystems, the need for AI readiness and ROI-focused tech adoption with fragmented bets.
The report is designed to help leaders focus their efforts where it matters most — effectiveness, experience, and value.”
The report outlines three core imperatives for HR and business leaders to close the emerging gaps by strengthening HR’s core agenda, capability mandate and tech value realisation.
