New Delhi, August 5, 2025 — At Asia’s largest HR and Work Tech conference, TechHR India 2025, People Matters unveiled its flagship annual research report, “The SHRPA State of HR Industry – Global Executive Insights 2025.” The findings underscore a stark contrast between HR leaders’ confidence in change management and their actual readiness for AI transformation.
Confidence Without Capability: A Transformation Paradox
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86% of HR leaders say they feel prepared to navigate disruption.
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Yet, only 29% confirm they are truly AI-ready — revealing a critical capability gap.
This discrepancy signals a fundamental barrier to unlocking the full potential of HR-led transformation in the era of AI, automation, and borderless work.
About the Study: Regional Breadth and Business Depth
This year’s SHRPA report is its most extensive to date, drawing insights from:
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1,200+ HR and business leaders
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30+ qualitative interviews
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Regions covered: India, Southeast Asia, Middle East, and Pacific-ANZ
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Influence scope: $1.7 trillion in combined revenues and 5.9 million employees
Key Findings: The 2025 HR Readiness Landscape
1. Impact Gaps on Business Priorities
HR’s interventions are underdelivering on critical business challenges, with a 12% gap between effort and impact across strategic priorities.
2. GenAI Adoption Still Nascent
Only 1 in 4 organisations have fully implemented GenAI — the biggest barrier cited being internal capability limitations.
3. AI Investment Ambitions Lagging
Just 29% of HR teams are prioritising AI in their transformation agendas, exposing a widening ambition-execution gap.
4. HR Tech Budgets Set to Surge
With 58% of leaders adopting a hybrid or best-of-breed tech strategy, HR tech investment is expected to rise by 10–25% in 2025.
5. Maturity Rises, ROI Clarity Falls
While HR tech maturity has increased by 26% over last year, 61% of leaders say they struggle with realising ROI, showing that tech investments aren’t translating into measurable outcomes.
Leadership Reactions: From Optimism to Urgency
Pushkaraj Bidwai, CEO of People Matters, remarked:
“The SHRPA 2025 report makes it clear — transformation today isn’t about ‘if’, it’s about ‘how fast, how smart, and with whom.’ AI readiness is now a business imperative, not a luxury.”
Cheshta Dora, Head of Research & Content Strategy at People Matters, added:
“Volatility, complexity, and AI acceleration are converging. HR leaders must stop making fragmented bets and instead focus on real capability-building for effectiveness and value delivery.”
Global Shifts: Borderless Talent and Capital Reshaping Strategy
The report also highlights macro trends reshaping business strategy:
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Access to foreign capital and talent has jumped five spots to become a top-three priority.
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Borderless innovation ecosystems are gaining momentum as organisations seek niche skills globally.
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Traditional concerns like inflation and policy instability are taking a backseat to capability-based competition.
Closing the Gap: Three Strategic Imperatives for 2025
To future-proof transformation and bridge the readiness chasm, SHRPA 2025 recommends HR and business leaders focus on:
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Strengthening the Core Agenda: Refocus HR’s value on strategic effectiveness.
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Building Capability Mandates: Prioritise internal upskilling and leadership readiness.
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Maximising Tech ROI: Create robust, AI-ready frameworks that deliver tangible business outcomes.
Conclusion: Optimism Isn’t Enough — Capability Is Key
As organisations prepare for a complex, AI-powered future, SHRPA 2025 serves as more than a report — it’s a strategic blueprint. The message is clear: HR transformation must now be powered by clarity, capability, and commitment.
Access the Full Report
👉 Read the complete SHRPA 2025 report here
About People Matters
People Matters is APAC’s leading People & Work media and community platform. Over 15 years, it has empowered over 500,000 HR and Talent leaders through:
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Research & Insight tools
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Conferences like TechHR
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Learning and leadership content
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Community-driven transformation journeys
TechHR remains Asia’s largest and most influential HR and Work Tech initiative.
