Only 43% of organisations have advanced HR analytics maturity: Deloitte

Artificial intelligence is becoming central to workforce management in India, yet fewer than half of organisations have developed advanced HR analytics capabilities, according to a new study by Deloitte.

The consultancy's Future of Work and People Analytics Maturity – The Indian Story report found 43% of organisations surveyed operate at advanced levels of people analytics maturity. However, more than 70% continue to depend on static reporting, highlighting persistent gaps in data infrastructure, analytics capability and governance.

The findings are based on insights from more than 85 organisations across India.

AI adoption is changing how HR operates

According to Deloitte, organisations are increasingly embedding AI into HR and workforce processes as they redesign jobs, skills and workforce models.

The report found:

• More than 50% of organisations have started integrating AI into HR and work processes.
• More than 60% report a shift from task-based jobs towards roles focused on problem-solving and creativity.
• Around 80% are strengthening workforce planning and contingent workforce strategies.
• 76% are actively identifying future skills gaps.
• 81% are investing in employee experience, career development and well-being initiatives.

The findings suggest organisations increasingly view workforce transformation as a strategic business priority rather than a standalone HR initiative.

People analytics still has room to mature

Despite growing investment in AI, Deloitte said many organisations have yet to build the foundations needed for data-driven workforce decisions. According to the report:

• 43% have reached advanced people analytics maturity.
• More than 70% still rely primarily on static workforce reports.
• Significant gaps remain in data quality, governance, analytics capability and technology infrastructure.

The report also found maturity levels vary by industry. Technology and ITeS organisations lead in people analytics adoption, while manufacturing, retail and industrial sectors continue to offer significant opportunities for improvement.

HR's role is expanding beyond traditional functions

According to Deloitte, HR is evolving from an operational support function into a strategic workforce architect. The report identifies six priorities shaping the future of work in India:

• Strengthening people analytics foundations through high-quality workforce data.
• Integrating AI technologies, including Generative AI and Agentic AI, into workforce decision-making.
• Making recruitment, workforce planning, succession and reskilling more proactive through predictive insights.
• Using workforce data to improve employee well-being, engagement and trust.
• Accelerating the transition from job-based to skills-based organisations.
• Positioning HR as a strategic partner in business transformation.

Data quality will determine AI success

Nitin Razdan, Partner and Human Capital Consulting Leader at Deloitte South Asia, said India is well positioned to lead the next phase of AI-enabled workforce transformation because of its digital ecosystem, talent base and increasing use of data-driven technologies.

He said the competitive advantage will come from how effectively organisations use workforce data and insights to redesign work, build future-ready skills and create more agile workforce models. As people analytics evolves, its role will extend beyond measuring workforce outcomes to helping organisations anticipate change, accelerate learning and improve workforce decisions.

Skills-based organisations gain momentum

The report also highlights the growing shift towards skills-based workforce models.

According to Deloitte, organisations are increasingly using AI and people analytics to identify emerging capability requirements, close skills gaps and guide continuous upskilling and reskilling efforts.

The consultancy said combining strong data foundations with AI-enabled workforce insights will become increasingly important as organisations respond to changing business demands and evolving employee expectations.

As AI adoption accelerates, the report suggests the next stage of workforce transformation will depend less on technology deployment and more on organisations' ability to convert workforce data into faster, more informed business decisions.