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HR Tech Adoption Slows as AI Overload and Strategy Gaps Stall Progress

HR Tech

Business Honor
05 May, 2025

HR leaders urge a strategy-first approach amid fast tech growth and uncertain budgets.

Although new HR technologies—particularly AI-powered tools—are appearing on the market rapidly, corporations are not implementing them as fast. This was one of the most important messages conveyed at the HR Tech Meetup in New York City on Thursday.

The conference, held prior to the HR Tech Conference in Las Vegas this September, converged HR professionals, tech inventors, and business leaders to discuss the roadblocks confronting the HR tech sector.

George LaRocque, WorkTech's founder, moderated the conversation with Madeline Laurano, Aptitude Research's founder and analyst. LaRocque noted that innovation is racing forward, but real buying and adoption of new tools seem slow. "It's like the market is speeding up and stuck at the same time," he remarked

One of the big reasons is that there are a lot of companies eager to apply AI in HR, but they don't have the planning and support to make it happen. The pace of change is overwhelming buyers. There's interest, but no clear strategy.

The other issue raised was regarding ethics and privacy. Laurano explained that organizations do not know how to approach legal and ethical issues around AI, particularly when there are no internal committees or guidelines.

Uncertain economy and budget constraints are also making businesses take a pause in choosing new tech solutions. LaRocque suggested that it's better to purchase the proper tool with a successfull plan than to hurry.

In this complicated environment of today, the two speakers both concurred that vendors should provide transparency about tools and abilities. This makes the HR buyers more confident and allows them to make better decisions.