HR teams fail to capitlise on AI's benefits amid skills gaps
A lack of skills in artificial intelligence has emerged as the top challenge for human resources professionals in Australia despite growing adoption of AI tools at work.
Capterra's 2025 HR Software Trends Survey recently polled more than 3,200 HR professionals globally, including 278 Australians, to determine the impact of AI on the sector.
The top challenge for Australian leaders in adopting HR software with AI features is having sufficient AI skills on staff, as cited by 44% of the respondents. Their other challenges include:
The skills gap in AI comes despite the recruitment benefits the emerging technology is delivering to HR teams that adopt it.
According to the poll, 46% of HR leaders using AI features in their software have reported improved recruitment outcomes.
They also reported better employee or candidate experience (51%), as well as improved HR or talent analytics processes (34%).
The other benefits for HR leaders include:
"AI allows HR to shift from being a reactive function to a proactive one — surfacing insights, predicting workforce needs, and personalising employee experiences at scale," said Dr Marcus Bowles, a global expert in workforce development, in the report.
But with the persistent skills gaps, the report warned that many teams cannot fully capitalise on these AI tools, underscoring the need to upskill teams on the technology.
"As Australian businesses embrace AI-driven HR solutions, success hinges not just on adopting new technologies, but on building the right skills, safeguarding data, and keeping people at the heart of every decision," said Capterra analyst Laura Burgess in a statement.
"Organisations that invest in upskilling, integrate their HR systems effectively, and prioritise security will be best placed to attract, engage, and retain top talent."
