ASEAN firms lead APJ region in AI for HR functions

A recent study by Workday reveals that upskilling employees remains one of the most significant challenges facing organisations across the ASEAN region today.

The study entitled "The Forever Forward HR Leader" surveyed 1,515 business leaders and HR professionals in large companies across the Asia Pacific and Japan (APJ) region, including ASEAN. It found that more than a third (38%) of respondents considered employee upskilling a top priority for their organisations. Additionally, a similar percentage identified performance management as a key hurdle in enhancing workforce productivity.

To combat these challenges, ASEAN organisations are actively re-evaluating their talent management strategies. Approximately 55% of the surveyed organisations are investing in employee training and development programmes to address the skills gaps identified.

In addition to these efforts, the study highlighted the extensive use of Artificial Intelligence (AI) and Machine Learning (ML) within the region. Some 87% of respondents indicated their organisations are utilising these technologies to perform HR functions and streamline talent management processes. This progressive adoption of AI and ML places ASEAN ahead in the APJ region for workforce management technology deployment, surpassing South Korea at 79%, North Asia at 74%, Australia/New Zealand at 72%, and Japan at 48%.

Pannie Sia, General Manager, ASEAN at Workday, remarked, "Technology is increasingly central to how ASEAN businesses and HR leaders inform decision-making, streamline workforce processes, and drive workplace innovation. By aligning technology innovations and employee development, organisations can transform employee engagement and capability, building a future-ready workforce and setting the stage for an organisation's long-term success."

The study further points out that, alongside the deployment of AI, ASEAN organisations are pioneering in prioritising employee experience. Around 50% of ASEAN respondents reported investing in physical, digital, and cultural processes and programmes to enhance employee retention.

This comprehensive research was conducted by McCrindle on behalf of Workday, surveying leaders from large enterprises, including 252 respondents from four ASEAN markets: Singapore (101), Malaysia (49), Thailand (50), and Indonesia (52).

Workday is an enterprise platform that helps organizations manage their most important assets – their people and money. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 10,500 organisations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500.