HR Departments in Asia-Pacific Trail Behind as Companies Race to Adopt AI, Study Finds

A new study reveals a stark digital divide inside Asia-Pacific companies: while IT and finance teams have embraced automation, human resources departments are struggling to keep pace — and the cost is measured in lost hours and overwhelmed employees.

The research, conducted by Lark, surveyed 900 companies and 5,000 workers across six countries. It found that 69 percent of IT departments are heavily digitized, followed by finance at 60 percent. HR lags at just 47 percent, with employee experience barely ahead at 48 percent.

The consequences are tangible. More than half of all employees — 55 percent — report losing three or more hours each week to digital inefficiencies. A full 71 percent say they feel swamped by the sheer number of tools they have to juggle. Olivier Adam of Lark APAC calls this a "digital tax" and argues that workers themselves need to be brought into the transformation process more actively.

APAC Leads Globally on AI — But Not in HR

Despite HR’s struggles, the Asia-Pacific region is ahead of much of the world when it comes to adopting artificial intelligence. A separate report, the HireRight 2026 Global Benchmark Survey, shows that 43 percent of APAC organizations already use AI for training, and 35 percent deploy it for talent acquisition.

Attitudes toward AI in recruitment are shifting quickly. Nearly half — 49 percent — of HR professionals in APAC now view candidates using AI tools positively, up sharply from 30 percent the previous year. By contrast, 52 percent of North American HR departments still use no AI solutions at all.

But enthusiasm for the technology runs into a hard wall: talent shortages.

Philippines: AI Adoption High, Skills Gap Wider

The Aon Human Capital Trends 2026 report, using the Philippines as a case study, found that 72 percent of organizations have either adopted AI or are piloting it. While 94 percent expect the technology to create entirely new job roles, only 17 percent say they can recruit or retain the AI talent they need.

A mismatch in expectations compounds the problem. Some 71 percent of employees want personalized benefits packages, but just 9 percent of employers provide them. Only 13 percent of Philippine companies have transparent pay structures.

Training Gaps Threaten Transformation

Sprout Solutions, which will host the State of HR Summit in Manila on July 8, released advance data: 95 percent of surveyed professionals say they are familiar with AI, and 89 percent welcome the changes. Yet only 35 percent have received any AI training from their employer.

Global research firm i4cp surveyed over 1,300 executives worldwide and reached a similar conclusion. Many HR teams are experimenting with isolated tools rather than redesigning workflows from scratch. Companies that have built a strong AI culture, i4cp found, see up to 4.5 times more impact from their HR initiatives.

Bright Spots Amid the Struggles

Not all news is discouraging. Chinese HR-software provider Beisen Holdings reported a 16.9 percent revenue increase for 2026, reaching about 1.1 billion RMB. Growth was driven largely by AI-related offerings, and the company launched a new platform called Mavens on June 24.

In Singapore, Rockwell Automation earned a "Global Lighthouse" designation from the World Economic Forum for its productivity achievements. The factory runs more than 50 digital and AI-enabled solutions, spanning smart automation and AI-based quality control.

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