Asia-Pacific doubles HR tech adoption since 2022

Over the last months, we have had time to dig into specific data segments, including those from respondents in Asia-Pacific. As my team and I crunched the numbers, we made some interesting discoveries, several of which are around the use of AI – the hottest topic in HR tech these days. The data also revealed notable shifts in HR tech investment across the Asia-Pacific region and potential opportunities for HR organisations to enhance efficiency.

So, let us dive in, starting with AI.

Small and mid-sized businesses in Asia-Pacific were twice as likely to adopt AI-enabled solutions than those in North America

Perhaps unsurprisingly, the adoption of AI-enabled HR technology among companies with more than 5,000 employees is fairly consistent across all geographic regions. These large, often global organisations typically have highly sophisticated structures and technology infrastructures. Our data shows that nearly 70% have already adopted—or plan to adopt within the next 12 months—some form of AI-enabled HR technology.

But when we looked at AI adoption in small and mid-sized companies, we saw some distinct differences. Overall, adoption rates were significantly lower, likely due in part to more limited budgets and smaller teams. What stood out, though, was that in Asia-Pacific and Europe, the Middle East, and Africa (EMEA), these companies were twice as likely to be using an AI-enabled HR solution compared to their counterparts in North America.

We also found differences in how companies were paying for AI functionality. Only 36% of companies in Asia-Pacific in these market categories were paying additional fees or licenses for the AI solutions they were using, compared to 40% of companies in North America and 47% of companies in EMEA. This disparity indicates that in Asia-Pacific, AI functionality is frequently bundled into tech solutions now in use, or that vendors are offering better deals to gain market share in the region, or a combination of both.

We believe the higher rates of AI adoption in Asia-Pacific can be attributed to two primary factors. First, because companies in the region have historically lagged in adopting HR technology, their HR tech infrastructures tend to be less complex. As a result, when they implement new technologies, they face fewer challenges related to integration, data silos, and compatibility—common obstacles to successful AI adoption.

Second, we believe the region’s emphasis on employee engagement—likely driven by a critical shortage of highly skilled labour—is another key factor encouraging adoption. In contrast, we attribute EMEA’s higher adoption to consistent and highly regulated workforce compliance laws, which support greater standardisation and fewer variables.

The top uses of AI in companies in Asia-Pacific are for job descriptions, learning, process efficiency, HR help desk, and recruiting. These uses are similar across all geographies. ChatGPT is the most widely used AI application in Asia-Pacific, as it is in North America and EMEA. However, we expect to see other highly used applications in the near future, as many HR solutions have created solid generative AI solutions to address practical needs.

A lack of AI knowledge is a common stumbling block for implementation across all regions. However, in Asia-Pacific, the shortage of AI-related skills poses a significantly greater challenge—cited by 33% of respondents—compared to just 17% in both EMEA and North America.

Other survey highlights

• The data revealed that HR organisations are increasingly using HR technology to play a more influential role in workforce-related decisions. In 2020, only 48% of respondents reported using HR tech to inform such decisions. By 2024, that number had risen to 58%, marking a 21% increase.
• However, only 21% of respondents in Asia-Pacific across all company sizes reported having a dedicated HR tech budget, lower than in other regions. Additionally, 63% of those in Asia-Pacific responsible for HR tech said they had three years or less experience in their roles, a significantly higher percentage compared to other regions. These findings suggest that limited budget control and less experienced HR tech leadership may be hindering optimal technology use. Greater ownership of HR tech budgets can enable HR teams to align technology with their strategic goals better and improve the quality of workforce-relevant data collection.
• HR technology adoption continues to grow steadily across Asia-Pacific. Since 2022, organisations in Asia-Pacific have doubled their average adoption rates, with the most significant increases seen in benefits, workforce budgeting and forecasting, compensation, and HR analytics solutions. Interestingly, companies in Asia-Pacific still lag in adopting human resource management system (HRMS) solutions, which may indicate that the full value of the comprehensive functionalities now offered by HRMS platforms is not yet fully recognised.
• Additionally, HR functions in Asia-Pacific trail behind in adopting shared services or centres of excellence for HR service delivery. Shifting towards these delivery models presents a major opportunity to improve HR efficiency and maximise the return on HR tech investments.

Our 2025-2026 HR Systems Survey is open now. We will be digging deeper into several areas, including the actual impact of AI on strategies and outcomes, contingent workforces, and global compensation and benefits. All survey participants will receive a complimentary report. Your feedback is important.

About the Author:

Stacey Harris is Chief Research Officer and Managing Partner, Sapient Insights Group.

This article is based on data from the 2024-2025 HR Systems Survey, conducted annually by Sapient Insights Group. Survey data were collected from respondents representing 3,318 companies in 59 countries. The survey collects feedback on the use of HR technology in eight categories, planned investments, and general information about HR organisations.