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APAC Leads in AI Adoption but Lags in Workforce Readiness: Aon

APAC Leads in AI Adoption but Lags in Workforce Readiness: Aon

Aon plc, a leading global professional services firm, released insights for Asia Pacific (APAC) from its inaugural Human Capital Trends Study, revealing a critical gap between organisations' rapid adoption of AI and their ability to translate it into meaningful workforce and business outcomes.

 

AI Adoption Accelerates

AI adoption across APAC is accelerating, with 74 percent of organisations having already deployed or piloting AI programs. The region has moved from experimentation to implementation, as organisations focus on efficiency, automation and innovation. However, talent shortages remain a structural constraint to scaling, with only 21 percent believing they can effectively recruit and retain sufficient AI talent - trailing the global average of 24 percent.

Organisations increasingly view AI as a tool to augment and reshape work rather than eliminate jobs. In APAC, 84 percent of respondents expect AI to automate certain tasks without replacing jobs entirely, while 87 percent anticipate it will create new roles requiring different skills. At the same time, 25 percent expect some job displacement as AI adoption evolves, reinforcing the need for continued investment in skills and workforce development.

"Across the Asia Pacific region, businesses are making strong progress in AI and workforce data, but technology alone will not deliver better outcomes," said Tim Dwyer, head of Human Capital in APAC for Aon. "The study highlights a critical gap between access to workforce data and the ability to act on it meaningfully. Insufficient investment in skills and workforce planning is constraining the value organisations can realise from AI. Addressing this gap will require stronger workforce planning, more personalised employee experiences and closer alignment between talent strategies and long-term business priorities - unlocking productivity gains and sustaining long-growth across the region."

APAC Lags in Personalised Employee Benefits

Employers across APAC report higher HR data maturity than the global average, enabling greater access to real-time workforce insights. Forty-two percent report high HR data maturity compared with 38 percent globally, and 74 percent having deployed or piloted AI, slightly ahead of the global level of 73 percent. This capability is supported by ongoing workforce development, with only 9 percent reporting that their workforces have not recently participated in AI reskilling or upskilling initiatives.

Despite these advancements, only 22 percent of employees in the region have access to customizable employee benefits, well below the global average of 33 percent. This is significant, given that 76 percent of APAC employees place a high value on personalised benefits, yet the majority lack access to them.

In response, organisations are focusing on three core priorities: accelerating digital transformation within HR functions, strengthening leadership and succession planning and optimising workforce planning and organisational design. Adaptability and change management are also cited as the most critical workforce skills required over the next three years, underscoring the rapid pace of business and technology change across the region.

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