# 2025 HR Software Trends: How AI and Technology Are Shaping HR for Companies | Capterra | Capterra > Discover how AI-powered HR software is transforming hiring, upskilling, and retention for small and midsize businesses. Download Capterra’s free 2025 HR Software Trends e-book for actionable insights on adapting to today’s HR challenges. Source: https://www.capterra.com/resources/hr-software-trends-ai-talent-transformation --- # Capterra’s 2025 HR Software Trends: How Leading Organizations Transform Talent With Technology Written by: Bruno Peláez Bruno PeláezAuthor Senior Content Analyst Experience I’ve been writing for Capterra since 2019, establishing myself as a thought leader in the B2B software market. My current f... [See bio & all articles](https://www.capterra.com/resources/author/bruno-pelaez/) and contributor: Brian Westfall Brian WestfallContributor HR Technology Expert Experience I worked at Capterra for over a decade, becoming a trusted thought leader on all aspects of the HR technology market. I have... [See bio & all articles](https://www.capterra.com/resources/author/bwestfall/) Published July 24, 2025 1 min read ## Hiring, upskilling, and retention are more complex than ever. Our exclusive e-book shows how HR leaders can leverage AI-powered HR software to address these evolving challenges. Download Capterra’s free 2025 HR Software Trends e-book [](#signup) In today’s uncertain and volatile global environment, HR leaders are navigating new challenges as they work to attract, develop, and retain talent. Many are focused on adapting to rising recruiting costs, ongoing skills gaps, and the growing use of AI in HR processes. Adding AI to HR software is just the start—success also depends on integrating new tools with existing systems, protecting data, and prioritizing employee experience. This e-book explains how HR leaders are navigating these changes and offers practical steps for organizations to adapt to a fast-changing world. Key insights - **AI is transforming recruiting:** 30% of HR leaders think that HR analytics is the process that benefits most from AI features. - **Upskilling is a must:** 45% of HR leaders cite training and upskilling as their main operational challenge for the year ahead. - **Engaged employees stay longer:** 43% of companies using AI features in HR software report higher employee satisfaction or engagement. - **Security and data quality matter:** 67% of HR leaders consider security a critical factor when selecting HR software. **Download Capterra’s 2025 HR Software Trends e-book below and discover how companies are using HR technology to build stronger teams and drive growth.** * * * ### Was this article helpful? * * * ## About the Authors [### Bruno Peláez](https://www.capterra.com/resources/author/bruno-pelaez/) Bruno Peláez is a senior content analyst at Capterra, covering the B2B software industry, with a current focus on the human resources and finance and accounting industries. His Capterra research has been featured in various Spanish-speaking publications, including El Economista (Mexico), Forbes México (Mexico), El Universal (Mexico), El Financiero (Mexico), and El Periódico (Spain), among others. [### Brian Westfall](https://www.capterra.com/resources/author/bwestfall/) Brian Westfall worked at Capterra for over a decade, becoming a trusted thought leader on all aspects of the HR technology market. He has a passion for helping organizations create great workplaces by leveraging his keen attention to detail and ability to present information engagingly. Before Capterra, he honed his writing skills in journalism, social media content creation, and search engine advertising. ### RELATED READING - [AI in Talent Management Software: The Bridge Between Recruiting and Retention](https://www.capterra.com/resources/ai-talent-management-software/) - [Payroll Software vs. HR Software: What’s the Difference](https://www.capterra.com/resources/payroll-vs-hr-software-difference/) - [How AI Scheduling Software Helps Restaurants Reduce Overtime and Boost Staff Satisfaction](https://www.capterra.com/resources/ai-employee-scheduling-software-for-restaurants/) - [LMS Pricing Models Explained: Hidden Costs, Plans, And Comparisons](https://www.capterra.com/resources/lms-pricing-models-guide/) - [Payroll Pricing Explained: Flat-Rate vs Per-Employee Models](https://www.capterra.com/resources/payroll-pricing-models-guide/) - [Personalizing Recruiting and Onboarding With the Right HR Tools](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/) - [AI vs. HR Software Reviews: What SMBs Should Consider When Selecting HR Tools](https://www.capterra.com/resources/ai-vs-hr-software-reviews/) - [7 Top-Rated AI Applicant Tracking Software](https://www.capterra.com/resources/ai-applicant-tracking-software/) - [Employee Retention Strategy: Practical Steps and Resources for SMB HR Teams](https://www.capterra.com/resources/employee-retention-strategies-smbs/)