Four in ten European HR professionals are investing in AI

Eleven percent of European HR professionals rank AI implementation among their top five challenges for this year — up from 8% in 2024. The share of companies investing in AI to support the workplace has also increased, from 33% last year to 38% this year. Key areas of investment include learning and development (19%), such as AI-driven learning paths; performance management through predictive analytics (18%); and recruitment, with tools like automated CV screening (18%). These findings come from recent international research by the European HR solutions provider SD Worx among 5,625 HR managers and 16,000 employees from sixteen European countries. The responses highlight the importance of the AI Act, the European regulation that has been partially in effect since February 2.

A growing share of companies is investing in AI in the workplace: 38% of HR professionals are already doing so today, compared to 33% in 2024. Another four in ten companies are actively exploring how to use AI in the workplace. The fact that only one in three organizations (31%) is already seeing concrete results from AI in their HR processes shows that many are still in the experimental phase.

But what are HR teams investing in the most? Learning and development comes out narrowly on top at 19%, including AI-driven learning paths that better tailor training to individual employee needs. Recruitment, with automated CV screening, and performance management also score high (both at 18%). In addition, organizations are using AI for HR support, such as chatbots that answer employee questions (18%), and for compliance management with systems that automatically check whether processes comply with regulations (16%).

“Since February 2, 2025, two key rules of the AI Act — the European regulation on AI — have already been in effect. First, companies must ensure that employees who work with AI are AI-literate. That doesn’t mean they have to know everything, but they should be able to use AI critically and wisely. Anyone working with AI must have enough knowledge to make smart choices and recognize risks. In addition, it is prohibited to use AI systems that violate fundamental rights, such as social scoring or emotion recognition at work. Therefore, companies must know which AI tools they're using and eliminate those that are prohibited. Starting August 2, violations could result in fines up to €35 million in certain cases.

There will also be additional obligations for general AI models. Other parts of the law will take effect starting in August 2026, with the final part coming into force in August 2027,” says Saeys.

Although more companies are investing in AI for HR purposes, many HR professionals remain uncertain. For example, 37% fear that AI will take the human aspect out of HR processes. Almost as many (35%) indicate that they lack sufficient knowledge or expertise to apply AI in HR, while another third (34%) is concerned about data privacy and security.

Moreover, for many organizations it remains unclear what exactly AI will change within HR. While 45% of European employers expect AI to change the workplace rapidly, more than half (53%) still find it unclear what that means concretely for HR tasks and the HR operating model. However, 36% do expect AI to make certain roles redundant over time.

On the employee side, the picture is different: 27% are worried that AI will make a large part of their job redundant. Among current AI users, nearly half (49%) believe AI will significantly change or even completely transform their job within the next three years.

Employees seem to be experimenting increasingly with AI at work. Nearly a quarter (23%) regularly use AI, compared to 18% in 2024. Employees primarily use AI to create content, learn new things, or automate tasks (each at 20%). Data analysis (19%) and brainstorming ideas (16%) complete the top five areas of application.

“We recommend that employers establish a clear AI policy: who is allowed to use which tools, how can the organization stay up to date, and how do you ensure knowledge is retained when roles or technologies change? Anyone who wants to use AI wisely in HR should start with a clear objective. How can AI make work more meaningful, improve the employee experience, or create more value? As you implement AI, make sure to invest in upskilling your HR team. Use AI in a fair and transparent way, in line with the European AI legislation. That’s the only way to build trust with employees and stakeholders. Make sure AI does not remain a collection of isolated pilot projects but becomes a cohesive whole. Work on an integrated approach that connects all HR domains — from recruitment to development and retention,” concludes Saeys.

About the international survey 

SD Worx, the leading European HR services provider, supports both small and large organizations with their HR and payroll challenges. To stay in touch with employers and employees, SD Worx regularly conducts in-depth surveys. The analysis of the most recent ‘HR & Payroll Pulse’ provides organizations with valuable insights to sharpen and future-proof their HR and payroll strategies.

The survey was conducted in February 2025 across 16 European countries: Belgium, Germany, Finland, France, Ireland, Italy, Croatia, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden, and the United Kingdom by the SD Worx Research Institute. A total of 5,625 employers and 16,000 employees were surveyed. The results offer a representative picture of the labor market in each country.