APAC Leads in AI Adoption but Lags in Workforce Readiness, Aon Study Finds
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.
Wellbeing and Employee Value Proposition Show Mixed Progress
While 85 percent of organisations report that their wellbeing strategy meets workforce needs, leadership visibility remains a concern, with only 26 percent reporting strong and visible commitment.
The employee value proposition (EVP) also remains underdeveloped, with just 22 percent stating that their EVP is clearly defined and understood by employees. Communication challenges persist, with information overload identified as the top barrier to effective employee engagement.
Pay Transparency and Equity Require Greater Focus
The report highlights persistent gaps in compensation practices across the region. Only 18 percent of organisations rate their pay transparency practices as mature, while 26 percent have not benchmarked employee compensation in the past year.
At the same time, 31 percent of organisations are implementing initiatives to close the gender retirement savings gap - exceeding the global average. Together, these findings show uneven progress, with continued gaps in pay equity and transparency.
"The findings demonstrate that organisations in APAC are positioning themselves to thrive in the future of work, but accelerating the shift from insight to action remains critical," said Puneet Swani, head of Talent Solutions in APAC for Aon. "Enhancing pay transparency, expanding benefits personalisation and aligning workforce strategy with business priorities will help build greater workforce resilience."
About the Report
Aon's Human Capital Trends 2026 Study surveyed 2,361 business, HR and people leaders globally, including 504 respondents from APAC across markets including Australia, China, Hong Kong, India, Malaysia, the Philippines and Singapore. More information about the report can be found here.
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About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
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The information contained in this document is solely for information purposes, for general guidance only and is not intended to address the circumstances of any particular individual or entity. Although Aon endeavours to provide accurate and timely information and uses sources that it considers reliable, the firm does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of any content of this document and can accept no liability for any loss incurred in any way by any person who may rely on it. There can be no guarantee that the information contained in this document will remain accurate as on the date it is received or that it will continue to be accurate in the future. No individual or entity should make decisions or act based solely on the information contained herein without appropriate professional advice and targeted research.
source: Aon plc