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It’s a good time to be a platform
Platforms that embed AI at the core of their value proposition are thriving, seeing no slowdown in demand or change in buying behavior. Others, particularly those offering modular or discretionary tools, are seeing longer sales cycles and heightened scrutiny. The macro picture hasn’t improved much, but buyers are moving towards platform consolidation and adding AI wherever possible. Efficiency is no longer just an aspiration; it’s the strategy.
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In this first-ever quarterly review of public HR Tech trends, I’ll be breaking down how this new buyer psychology is impacting each segment and which strategies are winning.
Human Capital Management (HCM) Segment
Strong demand for AI and platform consolidation: Buying behavior has not been materially impacted by the macro environment, with vendors like Dayforce reporting their best first quarter for sales. Customers are looking for “full suite” deals that simplify operations. AI has become a tangible revenue driver, with Dayforce and SAP seeing ~50% of new deals include AI offerings and Workday’s AI product revenue doubling YoY. AI products are analyzing legal contracts, reviewing job applicants to boost recruiter capacity, accelerating
