Strada report reveals surge in AI adoption and data-driven HR decisions fueled by HCM transformation

MIAMI, May 14, 2025 /PRNewswire/ -- A new report from Strada and ISG reveals that modern HCM transformation is enabling a powerful shift in how HR teams operate. Organizations that have implemented HCM platforms report a 500% increase in AI and machine learning usage, and a 44% rise in data-driven decision-making, highlighting the impact of digital transformation across HR functions.

The research – based on a survey of 190 global companies across multiple industries and consisting primarily of organizations that have implemented Workday HCM – reveals that transformation is delivering real results. Among these companies, 91% report success, far surpassing the industry benchmark, where typically half of such projects fail.

This success is reflected in measurable improvements across HR operations, from greater automation and integration to a stronger reliance on data in decision-making. Key gains include:

• 500% surge in AI and machine learning usage in daily HR operations
• 66% rise in system integration
• 55% increase in process automation
• 49% reduction in HR processes being described as complex
• 44% growth in data-driven decision-making

Importantly, the report underscores the need to start with the basics. Organizations that achieved the most significant improvements – many of which deployed Workday - began by simplifying processes, adopting best-practice configurations, and building modern operating models. Prior to deployment, only 12% of companies described their HR processes as somewhat easy. Post-deployment, that figure rose to 45% (a 275% increase) with a further 10% describing their processes as significantly easy - a term barely used before implementation. Notably, no company described their processes as very complex after deployment. Levels of automation also improved, with 'mostly automated' processes nearly doubling from 25% to 45%.

Sean Campbell, Strategic Advisor at Strada said: "Success starts with strong foundations - a solid platform that drives agility and growth, best-practice configuration, and a modern operating model built for the future that supports the business at every step. With this in place, organizations are well positioned to embrace cutting-edge innovations like AI, machine learning, and the limitless possibilities of Agentic AI."

Despite this progress, AI usage remains inconsistent. While AI adoption has surged, 68% of companies say they still use AI and ML only 'rarely' or 'sometimes', limiting the full value of their investment. This gap is often linked to a few persistent challenges - including data security concerns, trust in AI insights, and the need for deeper internal expertise.

Encouragingly, 90% of organizations have already taken steps to enhance digital skills, particularly in emerging areas such as AI and machine learning. While only 4% said they had no skills in this area, 34% described their capabilities as still developing - underlining the need for ongoing learning and development.

Gaurang Pagdi, Principal Analyst at ISG commented: "HCM transformation is more than just implementing new technology - it is about enabling HR to drive business growth, foster engagement and unlock the full potential of its workforce."

This transformation presents HR professionals with a unique opportunity to reshape their roles, elevate their impact, and lead strategic change within their organizations. As technology continues to redefine the function, those who embrace data, automation, and continuous learning will be best placed to lead the future of work.

To find out more about how HCM transformation is shaping the future of HR, download the full report here: https://news.stradaglobal.com/en-gb/isg-hcm-transformation

About Strada

Strada is a people, payroll, and technology leader that simplifies international workforce management. Across 180 countries, Strada designs and delivers people first solutions powered by cloud-based technology that help organizations grow and enable workforces to perform at their best. To learn more, visit www.stradaglobal.com