AI in Employee Engagement: A Smarter Path to Talent Retention

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In our latest report, The State of the HR Landscape in 2025, we explored how AI and machine learning are reshaping HR strategies, with a staggering 95 percent of respondents to our recent survey anticipating increased adoption of these technologies in the coming months.

Particularly, AI is transforming how HR tackles one of its most persistent challenges: aligning workforce skills with evolving business needs. In this sense, the study revealed a growing shift toward skills-based approaches, with organizations using AI to map employee capabilities to emerging roles. In fact, 46 percent of companies already applying skills-first strategies are leveraging them to support internal mobility, helping employees transition into new positions and advance their careers. The result? More agile workforces, and increased engagement and retention.

As AI adoption grows, so do the use cases. While this technology’s potential in HR is broad, it offers great opportunities for talent retention and employee satisfaction that we’ll explore in this article. By strategically integrating AI in employee engagement and talent management strategies, organizations have the chance to create workplaces where people thrive and stay. Let’s dive in.

AI in Employee Engagement: A New Chapter in Understanding and Retaining Talent

Artificial intelligence, with its ability

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