Absorb Software, the leading global AI-driven learning platform provider, today released its 2025 Inside the State of Upskilling report at a pivotal moment for HR, learning and development (L&D). The findings reveal a growing divide between intent and impact: while upskilling is widely acknowledged as critical to performance and resilience, most organizations struggle to implement it effectively at scale.
The 2025 report offers a sharp look at the execution gap in HR and L&D. While upskilling has overtaken compliance as the top L&D priority, the report finds that most programs remain misaligned with business needs—limited by manual processes, outdated infrastructure, and fragmented ownership. Based on a survey of and insights from over 1,300 learning and HR professionals, the report examines what’s working, what’s not, and what’s next in workforce upskilling—offering a practical framework for turning learning into a business advantage.
“Upskilling is no longer a nice-to-have—it’s a business imperative,” said Kimberly Williams, CEO of Absorb Software. “But intent alone doesn’t move the needle. What’s needed now is strategic learning: a system built to scale, adapt, and prove impact. “At Absorb, we’re meeting this moment with purpose-built innovation. Our AI-powered Strategic Learning System delivers scalable, hyper-personalized, and measurable learning experiences that drive real business impact—helping our customers close skills gaps faster, boost engagement, and align learning with strategic priorities.”
According to the 2025 report, several macro-trends are shaping the future of L&D:
- Upskilling is a strategic priority for HR and L&D teams: Upskilling has officially overtaken compliance as organizations shift toward business-aligned learning. Over the next two years, learning professionals believe upskilling will impact nearly every area of the business—including employee retention (16%), business growth (15%), productivity (14%), and innovation (13%).
- Top needs center on digital, role-specific, and leadership skills: Organizations are prioritizing capabilities that drive adaptability and growth—including technical proficiency, contextual role mastery, and people leadership.
- Many organizations are under-resourced to deliver: More than one-third lack the tools (33.5%) or resources (35.4%) to operationalize their upskilling ambitions—hindering execution despite strong intent.
- Timing is misaligned with business demands: 44% of organizations offer upskilling during onboarding—but this typically takes the form of generic or compliance-related training. Only 10% provide upskilling when new business needs arise, revealing a major agility gap. As priorities evolve, most learning programs remain static delivered once but not built to adapt.
- Belief in impact is high—but measurement lags: L&D leaders expect upskilling to drive key outcomes: retention (16%), business growth (15%), productivity (14%), and innovation (13%). Yet few organizations have systems in place to track progress or demonstrate ROI—making it difficult to prove strategic value.
- People-based learning remains underutilized: While mentorship, coaching, and peer learning are proven to accelerate skill-building, 44% of organizations don’t use any of these methods—and have no plans to start. Just 13% use apprenticeships, 10% offer coaching, and only 8% support formal mentorship—leaving powerful learning modes untapped.
As AI and Complexity Rise, Strategic Learning Takes Center Stage
As hybrid work, rapid technological change, and evolving skill demands reshape the workforce, organizations face growing pressure to deliver scalable yet tailored learning. While most recognize the strategic importance of upskilling, they struggle with implementation due to each organization’s unique requirements. Many rely on static tools and disconnected systems that fail to adapt training to real-world business needs—especially across diverse and evolving job roles. Even when upskilling programs are eventually launched, sustained adoption often lags—underscoring the need for systems that can personalize learning at scale and evolve with the business.
Absorb’s Strategic Learning System (SLS) is purpose-built to solve this challenge, helping organizations move from fragmented training efforts to connected, outcome-driven learning. Powered by AI, SLS maps critical skills, identifies individual gaps, and generates personalized learning paths tailored to specific roles—helping teams upskill at scale, even across the long tail of specialized roles.
“AI is allowing us to finally enable upskilling at scale,” said Saravana Sivanandham, Chief Marketing Officer at Absorb Software. “Upskilling isn’t a one-size-fits-all solution—that’s why many past efforts have fallen short. At Absorb, we’re using AI to gain a deeper understanding of the unique roles, skills, competencies, and learning paths that vary across organizations. Combined with our Strategic Learning Playbooks, this AI-driven approach helps overcome executional challenges and ensures upskilling efforts deliver measurable impact for our customers.”
Strategic Learning Playbooks (SLPs) are aimed at providing a blueprint to guide the design, implementation, execution, and measurement of learning programs across a variety of learning use cases in an organization.
The Path Forward: From Reactive to Strategic Learning
These shifts mark a turning point for L&D. The days of disconnected programs and generic content are giving way to strategic, outcome-driven systems—powered by AI and built for scale. For organizations ready to modernize, the opportunity has never been clearer:
- AI-driven skills assessments to pinpoint gaps in real time
- Personalized learning paths that adapt to each learner’s role, goals, and preferences
- Automated workflows that reduce admin burden and accelerate deployment
- Impact analytics to connect learning efforts directly to skills progression, learner engagement, and business alignment
“Absorb’s vision is to help organizations turn skills into a strategic advantage,” added Sivanandham. “Today’s learning programs must go beyond intent—they must deliver impact. That means aligning learning with business outcomes, empowering learners with the right tools, and using data to scale what works. Our position as the fastest-growing LMS provider—scaling at three times the pace of our nearest competitor—isn’t just about numbers. It reflects a market shift toward measurable, AI-powered learning that drives real business results. Absorb is proud to lead that transformation.”
To access the full report, please visit 2025 Inside the State of Upskilling report.
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