6 Best AI Tools for HR in 2025: Smart Hiring, Performance & Engagement

If you thought that HR is just about people management, think again!

Modern HR is also about predicting, personalizing, and performing. Employee engagement is imperative to beat global competition, especially considering the complexities associated with hiring hybrid or remote-only candidates. This is where HR AI tools have their significance.

38% of HR manager use AI in their practices and workflows. 67% of HR leaders use AI for employee engagement. Businesses using people data analytics have reported a 32% enhancement in talent retention. Conventional methods just can’t keep pace.

AI is changing the future of HR, from reducing hiring time to identifying which candidates suit the next role. It’s not just about replacing human judgment, but also about combining it with intelligent support systems.

This blog breaks down the top 6 AI-powered HR tools to help you hire better, retain longer, and lead smarter in 2025.

How AI is Transforming HR Functions

Let us learn how AI is changing key aspects of human resource management:

1. AI in Hiring

The Challenge: Sorting through piles of resumes and cover letters is tedious, time-consuming, and often riddled with bias. Traditional methods can miss top talent or fail to assess true potential.

How AI Steps In:

  • Smart Candidate Evaluation: AI tools leverage neuroscience-based algorithms and cognitive modeling to assess candidates’ emotional intelligence and problem-solving skills, looking beyond resumes to uncover true fit.
  • Lightning-Fast Resume Screening: AI scans CVs in minutes, pinpointing top talent with precision and slashing the time spent on manual reviews.
  • Video Interview Insights: Advanced platforms analyze tone, facial expressions, and speech patterns in video interviews, spotlighting high-potential candidates who might otherwise be overlooked.
  • Bias Reduction: By relying on data-driven insights, AI minimizes human biases, fostering a fairer, more inclusive hiring process.

Real-World Impact: AI makes hiring faster, smarter, and fairer. It uncovers hidden gems, reduces errors, and ensures the right people are matched to the right roles, setting the stage for a stronger workforce.

2. AI in Performance Management

The Challenge: Annual performance reviews are becoming obsolete. They’re error-prone, demotivating, and often fail to provide timely, actionable feedback.

How AI Steps In:

  • Real-Time Feedback: Platforms like Engagedly’s Marissa AI deliver instant, ongoing feedback, replacing rigid annual reviews with dynamic, meaningful conversations.
  • Personalized Goal Tracking: AI tailors performance goals to each employee, aligning individual efforts with company objectives while keeping motivation high.
  • Predictive Analytics: AI spots underperformance trends early, alerting managers to intervene before small issues snowball, enabling proactive support.
  • Continuous Coaching: Acting like a virtual coach, AI sends nudges to keep employees accountable and engaged in their personal growth.

Real-World Impact: Performance management evolves into a continuous, supportive process. Employees feel valued, managers stay ahead of challenges, and companies build a culture of growth over judgment.

3. AI in Employee Engagement

The Challenge: Disengaged employees drain productivity and morale, costing the global economy an estimated $8.8 trillion annually, according to Gallup. Keeping people connected and motivated is a constant struggle.

How AI Steps In:

  • Sentiment Analysis: Tools like Lattice and Workday’s Peakon analyze emails, surveys, and casual interactions to gauge employee morale and detect disengagement in real time.
  • Actionable Insights: AI translates emotional data into clear, practical recommendations, empowering HR to address concerns and boost workplace satisfaction.
  • Fostering Connection: By creating a continuous feedback loop, AI strengthens employee-manager relationships, building trust and collaboration.
  • Retention Boost: AI-driven insights identify what drives employees, helping reduce turnover by fostering a supportive, connected workplace culture.

Real-World Impact: AI acts like an emotional pulse-check, helping HR teams understand what employees need to thrive. The result is a workplace where people feel heard, valued, and inspired to stay.

The Big Picture

AI isn’t here to replace the human in human resources—it’s here to amplify it. By automating repetitive tasks, uncovering deep insights, and fostering real-time connection, AI frees HR professionals to focus on what truly matters: building a workplace where people can thrive.

Why Forward-Thinking Companies Are Investing in HR AI Tools in 2025

As the workplace evolves, HR departments are expected to do more with less—faster hiring, higher engagement, and better talent decisions. In 2025, AI tools are not just a competitive advantage; they’re a necessity. Here’s why:

1. Streamlined Operations and Cost Efficiency

AI can automate up to 40% of repetitive HR tasks, such as resume screening, scheduling interviews, answering FAQs, and onboarding support. This drives significant time and cost savings.

  • Companies using AI-powered hiring tools report up to $2,400 saved per hire
  • 81% of HR leaders say AI has reduced their time-to-hire by automating initial screening and candidate matching

The result? Faster processes, reduced overhead, and more time for strategic HR initiatives.

2. Enhanced Employee Experience

AI enables a more personalized and responsive employee journey—from onboarding to performance feedback. Platforms like Engagedly offer intelligent, end-to-end lifecycle management that fosters continuous engagement and growth.

This leads to stronger employee satisfaction, better retention, and a more connected workplace culture.

3. Built-In Scalability for Growing Teams

AI HR platforms are designed to scale effortlessly as your workforce grows. Whether expanding across departments, regions, or business units, tools like Zoho People and Engagedly adapt to new complexities without disrupting operations.

Scalable infrastructure ensures consistency, compliance, and continuity at every stage of growth.

4. Data-Driven, Predictive Decision Making

Tools like Visier empower HR leaders with predictive analytics that anticipate:

  • Employee attrition risks
  • Future hiring needs
  • Emerging skills gaps

Instead of reacting to workforce challenges, companies can make proactive, strategic decisions that align with business goals.

Top 6 HR AI Tools in 2025 

Here are the 6 best AI tools for HR that are at the forefront of making hiring smarter, performance management more proactive, and employee engagement more personalized:

1. Engagedly

Engagedly

Engagedly is an AI-powered, cloud-based talent management platform for HR teams, managers, and executives. It drives performance, engagement, and development by aligning goals across individuals, teams, and the organization.

Key Features:

  • All-in-One HR Suite: Performance reviews, 360° feedback, OKRs, L&D, engagement surveys, succession planning, and compensation—all in one interface.
  • Marissa™ AI: Offers feedback prompts, summarizes surveys, and generates OKRs, IDPs, and job descriptions using best practices.
  • Agentic AI: A modular AI system with agents for goals, learning, talent reviews, planning, and HR helpdesk—automating strategic HR tasks.
  • AI-Powered LXP: Delivers personalized learning paths, gamification, compliance tracking, and analytics for scalable upskilling.
  • Workflow Integrations: Seamless connections with MS Teams, Slack, Outlook, ADP, BambooHR, and more.

2. Eightfold AI

Eightfold AI

Eightfold AI is a deep-learning-powered talent intelligence platform built for enterprise HR teams to optimize hiring, retention, internal mobility, and workforce planning. It enables data-driven decisions by analyzing skills, potential, and career pathways at scale.

Key Features:

Talent Matching Engine: Uses contextual AI to match candidates and employees to roles based on skills, experience, and potential—reducing bias and improving quality of hire.

Career Path Prediction: Identifies future career trajectories and recommends upskilling opportunities to support internal mobility and employee growth.

Skills Gap Analysis: Maps workforce skills against future business needs to inform hiring and learning strategies.

Internal Mobility Tools: Recommends roles, projects, and learning paths to existing employees—boosting retention and engagement.

DEI Optimization: Offers bias-reducing screening tools and inclusive matching algorithms to support diversity hiring initiatives.

Talent Market Insights: Provides real-time analytics on skill availability, talent trends, and competitive benchmarks.

3. Lattice AI

Lattice AI

Lattice is a people success platform that uses AI to enhance performance, engagement, and career development. Designed for modern HR teams, it connects goals, feedback, and development into one unified experience that supports employee growth and organizational alignment.

Key Features:

Performance Management: Streamlines reviews, 1:1s, and feedback cycles with AI-generated summaries, suggested talking points, and sentiment analysis.

AI-Powered Goal Tracking: Helps set and track OKRs with smart recommendations, alignment insights, and real-time progress monitoring.

Engagement Analytics: Uses AI to analyze survey responses, detect trends, and surface actionable insights to improve employee morale and retention.

Career Growth Tools: Supports individual development plans, career pathing, and skill-building, with AI suggesting learning resources and opportunities.

Seamless Integrations: Connects with tools like Slack, Teams, Workday, and Google Workspace to keep workflows efficient and collaborative.

4. Workday AI

Workday AI

Workday is a leading enterprise HR and finance platform that now integrates AI and machine learning across its suite to automate processes, enhance decision-making, and improve workforce planning. Built for large organizations, Workday AI delivers actionable insights at scale.

Key Features:

AI-Enhanced Talent Management: Automates candidate matching, succession planning, and internal mobility using skill and role predictions.

Skills Cloud: Uses machine learning to identify, infer, and organize employee skills, enabling smarter upskilling and workforce development.

AI in Recruiting: Streamlines sourcing, shortlisting, and scheduling with intelligent candidate recommendations and recruiter productivity tools.

Predictive Analytics: Forecasts attrition risks, headcount needs, and workforce trends to support proactive HR strategy.

Conversational Interface: Empowers employees and managers to complete HR tasks and get insights through natural language interactions.

Enterprise Integrations: Seamlessly connects across Workday HCM, Finance, and external systems—providing a unified AI-powered HR ecosystem.

5. HireVue

HireVue

HireVue is an AI-powered hiring platform that streamlines recruitment through on-demand video interviews, assessments, and conversational AI. Built for enterprise hiring teams, it helps reduce time-to-hire while improving candidate experience and quality.

Key Features:

AI Video Interviews: Offers structured, on-demand interviews analyzed by AI to assess communication, competencies, and job fit—enabling faster screening.

Game-Based Assessments: Uses neuroscience-backed games to evaluate cognitive ability, emotional intelligence, and work style.

Conversational AI: Automates candidate engagement, screening, and scheduling through chatbots—active 24/7 across channels.

Bias Reduction Tools: Provides structured evaluation frameworks and real-time coaching to reduce bias in hiring decisions.

Analytics & Insights: Delivers hiring metrics, diversity tracking, and predictive insights to support smarter talent acquisition strategies.

ATS & Workflow Integrations: Works with platforms like Workday, SAP SuccessFactors, Greenhouse, and iCIMS for seamless recruiting operations.

6. Zoho People AI

Zoho People

Zoho People is an AI-enhanced HRMS ideal for small to mid-sized businesses. It streamlines HR tasks, improves workforce planning, and boosts employee experience through smart automation and analytics.

Key Features:

Zia AI Assistant:

  • Supports leave requests, check‑ins, timesheets, and HR queries via chat—completing tasks like leave applications and pull-up of pending tasks automatically.
  • Serves as a 24/7 conversational helper within the app and web interface .

Smart Shift & Attendance:

  • Auto-generates and manages shift schedules, breaks, and allowances. Sends real-time notifications for changes .
  • Uses geo‑tracking and facial‑recognition check‑in/out to ensure attendance accuracy.

Burnout & Sentiment Analytics:

  • Uses ML to predict burnout by analyzing sentiment, attendance trends, and scheduling load .

Compliance & Time-Tracking:

  • Monitors labor laws and suggests potential compliance issues, maintaining accurate attendance records.
  • Supports mobile check-ins, geo-tagging, and detailed time tracking.

Workflow Integrations:

  • Seamlessly connects with Slack, Teams, Zoho Recruit, Zoho Payroll, Google Workspace, and more .

Other Noteworthy AI Tools to Watch in HR

The following emerging tools bring niche capabilities for specific HR needs, from compliance to mental well-being:

ToolOverviewKey FeaturesBest For
KovaionAIComprehensive AI-powered HR platform for mid to large enterprises using ML and NLP.– AI-driven talent acquisition – Predictive analytics for turnover and succession planning – Customizable workflows – Automated performance reviewsEnterprises needing an all-in-one AI solution for complex HR operations.
Peoplebox.aiVersatile AI tool for hiring and performance management, integrates with ATS.– Resume screening and candidate enrichment – Performance tracking and goal alignment – Talent retention analyticsSMBs and scaling startups needing intuitive HR automation.
WorkhumanEmployee recognition platform fostering human-centric workplaces.– AI-powered recognition and rewards – Inclusion advisor for DEI – Social analytics for employee insightsCompanies prioritizing employee engagement and DEI in hybrid/remote settings.
PaycorHCM platform with AI for hiring, onboarding, and compliance for SMBs.– Intelligent sourcing – Predictive analytics for retention and planning – Payroll and HR integrationSMBs seeking budget-friendly, comprehensive HR automation.
Effy AIFree AI tool for performance management and team productivity.– 360 feedback automation – AI-generated performance reports – Performance analyticsSmall teams or startups needing cost-effective performance management.
Paradox (Olivia)Conversational AI assistant for high-volume recruiting tasks.– Automated recruitment (screening, scheduling) – Conversational interface – Pipeline managementHigh-volume recruiting teams needing to automate repetitive tasks.
AlbusAI-powered knowledge management platform for HR data organization.– NLP-driven knowledge base – Employee self-service options – Data organizationOrganizations streamlining HR knowledge management and self-service.

6 Must-Have Features in AI Tools for Smarter HR

1. Transparent Pricing

Avoid tools that lock you into long-term contracts with vague pricing structures. Instead, look for platforms with clear, scalable pricing models based on features and user count—ensuring you only pay for what you need.

2. Scalability for Every Business Size

Your HR software should grow with your company. Look for modular solutions like Engagedly and BreezyHR, which are built to scale and adapt as your business evolves.

3. Trial Access & Onboarding Support

Vendors should offer guided product trials, structured onboarding, and assistance with data migration. Smooth implementation is essential for driving adoption and maximizing your return on investment.

4. Quality of Service & Training

Strong customer support is a must. For instance, Engagedly provides access to success managers, live chat, and training sessions, along with dedicated implementation assistance.

5. Compliance & Data Security

Ensure the software complies with major security standards such as GDPR and ISO 27001. Given the sensitivity of HR data, robust data protection and regulatory compliance are non-negotiable.

6. User-Friendly Design & Innovation

Top HR AI tools invest in ongoing R&D to deliver meaningful updates. Look for seamless integrations with platforms like Slack, Microsoft Teams, and ATS systems, along with automation features like AI-driven payroll—designed to improve workflows, not disrupt them.

Conclusion

Investing early in the right AI HR tools helps you lead, not lag.

Today, AI in HR fuels forward-thinking. Predictive HR AI tools are redefining operations and driving organizational growth. This list of the 6 best AI tools for HR is unique in its own way.

AI is no longer an option. HR AI tools are critical for streamlining recruitment, enhancing employee engagement, empowering HR leaders, and helping them make more inclusive HR decisions.

Start with Engagedly, an HR ecosystem built to drive growth. With Marissa AI and Agentic AI, the HR tool has reimagined the routines of smart hires for modern-day enterprises. 

FAQs

What is the best HR AI software overall?

Engagedly is the most comprehensive HR/Talent management software. It handles all areas of enhancing employee performance with features like performance reviews, 360 feedback, goal-setting, collaboration, learning, and more.

Can only large corporations use AI HR solutions?

No. Products like BambooHR and Leena AI are affordable tools that can be used by small and mid-sized businesses.

How to implement AI HR solutions within your existing setup?

Start with a pilot use case (e.g., onboarding or performance tracking). Train your team, gather feedback, and scale by integrating with your HRMS for effortless adoption.

AI Agents in HR: Real-World Examples Driving Efficiency and Experience

The use of artificial intelligence in HR is no longer a futuristic concept—it’s a fast-growing reality. Valued at USD 3.25 billion in 2023, the global AI in HR market is projected to grow at a staggering 24.8% CAGR between 2024 and 2030. This explosive growth reflects how rapidly organizations are turning to AI to transform their HR operations.

But what exactly are AI agents in HR? Think of them as intelligent digital coworkers—smart, goal-oriented assistants that handle everything from onboarding and performance management to employee engagement and compliance. These tools don’t just automate tasks—they elevate the HR function with speed, consistency, and precision.

So, how are AI agents really making an impact in the workplace? In this blog, we’ll explore real-world tools and use cases that show how AI is actively enhancing efficiency, improving the employee experience, and supporting strategic HR decision-making.

What Are AI Agents in HR?

AI agents in HR are intelligent digital tools powered by artificial intelligence, designed to streamline, automate, and optimize a wide range of everyday HR functions. Think of them as virtual HR team members that work around the clock to enhance both efficiency and employee experience.

These AI agents are capable of handling tasks across several key areas, including:

  • Payroll Management
  • Performance Management
  • Compliance and Policy Adherence
  • Employee Experience & Engagement
  • Talent Acquisition & Recruitment
  • Learning and Development (L&D)


Unlike traditional HR tools, AI agents use natural language processing (NLP) and machine learning (ML) to understand user inputs, draw insights from large datasets, and perform tasks with minimal human intervention.

Take Marissa AI by Engagedly, for example. It analyzes real-time data from 360-degree feedback surveys to deliver personalized insights and development nudges to both employees and HR teams—helping them make smarter, data-driven decisions quickly.

In essence, AI agents don’t just support HR—they elevate it by combining speed, personalization, and intelligence.

Benefits of Employing AI Agents in HR

Employees using traditional self-service technologies have to go through preset menus or FAQs because they only provide static responses. AI agents are transforming the way HR teams operate by introducing an agile, goal-oriented strategy.

Here, we have listed some of the top real-life benefits of AI agents in HR.

1. Enhanced Talent Acquisition

From reviewing resumes to drafting offer packages, AI agents can expedite nearly every step of the talent acquisition process. AI agents can help with candidate evaluation, set up interviews, sift through enormous application pools, and interact with prospects.

A prime example is Paradox, an AI-powered hiring assistant utilized by businesses such as Unilever and McDonald’s.

Paradox’s conversational AI “Olivia” interacts with candidates, responds to their inquiries, and pre-screens resumes in real-time, relieving recruiters of the task of manually going through dozens of applications.

It has reduced time-to-hire by 75% at Uniliver. Thereby, boosting efficiency and saving time.

2. Personalized Employee Experience

According to a KPMG poll, 85% of participants said that the organization’s most essential HR skill is employee experience and engagement.

AI agents can personalize employee engagement and development initiatives. For instance, Marissa AI can provide customized nudges, like recommending training courses, chances for professional advancement, or health advice, that speak to each employee’s particular requirements.

Similarly, Walmart employs AI to help staff members select the best healthcare providers for their needs.

3. Data-Driven Decision Making

As per a Deloitte poll, 70% of businesses said they used data analytics to help with HR decision-making.

AI’s capacity to reveal predictive insights gives HR directors the ability to take proactive, calculated actions. AI agents can examine past data to find trends that can point to attrition concerns or talent shortages in teams.

By identifying these early indicators, HR can reduce the expensive effects of turnover by putting in place focused retention plans or upskilling initiatives.

Additionally, AI agents can help with workforce planning by evaluating future talent requirements based on corporate growth projections.

4. Better Compliance & Bias Reduction

AI reduces unconscious biases in hiring by using structured data to improve fairness and compliance.

For instance, HireVue promotes diversity and inclusion by using structured interview algorithms that concentrate on candidate skills rather than personal opinions. It also results in a 50% decrease in cost per interview.

Johnson & Johnson used Textio, an AI-powered writing tool, to find unintentional bias in their job postings. When they noticed that many of their job posts had a masculine slant, they made some AI-driven changes that resulted in a 9% increase in the number of female candidates.

Additionally, AI-generated decision pathways produce visible audit trails, ensuring that HR procedures comply with legal requirements such as GDPR and EEOC. In addition to lowering legal concerns, this transparency increases employee and candidate trust.

5. Simplified Onboarding & Training

According to Forbes, an effective onboarding procedure can boost retention by up to 82%.

AI-driven onboarding tools like Talla automate common questions about policies and system access to streamline the recruitment experience.

These chatbots lessen reliance on HR staff and speed up the onboarding procedure by offering 24/7, instant responses.

6. Improved Employee Retention

According to a Gallup poll, 85% of workers are not engaged at work. Given that 63% of employees would think about quitting their jobs within two years if they weren’t succeeding professionally.

Glint’s AI pulse surveys and other AI technologies track employee engagement levels in real time. AI detects early indicators of disengagement in teams by examining behavioral data and survey responses.

HR and managers can then take targeted actions to address issues proactively, including:

  • Recognition programs
  • Workload diversification
  • Career conversations

5 Real-World AI Agent Examples in HR

While there are numerous justifications for utilizing HR AI technologies, the most effective ones simplify hiring managers’ and HR assistants’ departmental procedures.

Let’s look at some of the real-world AI agent examples transforming the HR domain!

1. Engagedly’s Marissa™ AI – The Ultimate HR Super-Agent

1. Engagedly’s Marissa AI

Marissa™ AI is a smart, AI-powered HR assistant that automates routine tasks and addresses key HR challenges across:

  • Employee engagement – gathering and summarizing pulse surveys, sentiment, and feedback
  • Performance management – providing real‑time feedback, 360° review synthesis, and unbiased insights
  • Feedback delivery – generating objective feedback aligned with the SBI framework
  • Talent acquisition & description creation – crafting tailored job, survey, training-course and IDP descriptions

🔍 Key Use Cases

  1. Personalized Feedback (SBI-ready)
    Marissa crafts objective, balanced feedback using the Situation‑Behavior‑Impact model—ensuring clarity and fairness.
  2. Instant Recognition Templates
    Input a few details and get personalized praise instantly to lift team morale.
  3. Automated 360° Summaries & Nudges
    Marissa consolidates 360-degree feedback into actionable summaries and reminds managers proactively.
  4. Smart Development Plans (IDPs + Milestones)
    Generate customized Individual Development Plans with clear milestones; paired with learning recs to match career aspirations.
  5. Compelling Course & Job Descriptions
    Produce engaging summaries for training, surveys, jobs, and IDPs in seconds to streamline rollout and boost adoption.
  6. Unified AI-Powered Agentic Framework
    Since March 11, 2025, Marissa acts as a “Super Agent” within Engagedly’s Agentic AI framework—delegating requests (e.g., career advice, goal-setting, talent analytics) to specialist AI agents behind the scenes

2. IBM Watson in HR

IBM Watson in HR

IBM incorporates AI into its HR operations to give its employees better competence. For example, Watson, an AI virtual assistant, provides individualized responses and speeds up response times to IBM employees’ inquiries regarding everything from technical support to business policy.

Use Cases

  • Talent Acquisition: IBM Watsonx HR agents can draft offer bundles, find the best candidates, set up interviews, and issue job requisitions. Talent acquisition teams can make better hiring decisions when they have access to AI.
  • Employee Onboarding: Watsonx HR Agents can increase employee engagement. In addition to offering personalized advice, including pre-employment screenings, learning recommendations, onboarding profile creation, and IT request generation, these agents respond in real time to FAQs by employees.
  • Employee Satisfaction: Automate HR processes and streamline information availability. Watsonx HR Agents with generative AI can manage payroll, time off, in addition to administering benefits, including healthcare, retirement plans, and possibilities for professional advancement.

3. Talla AI Chatbot

Talla AI-powered chatbot uses machine learning to specialize in HR knowledge management. The platform is very flexible to current processes due to its smooth integration with Confluence, Slack, Microsoft Teams, and SharePoint.

Use Cases

  • HR Helpdesk Automation: Talla AI Chatbot streamlines HR support by addressing employee questions about leave policies or payroll issues.
  • Benefits Queries: Talla provides accurate, up-to-date information on health insurance, retirement plans, or other benefits
  • Onboarding Assistance: Talla guides new hires through onboarding processes. It answers common questions about company policies and training schedules.
  • Compliance Information: The chatbot delivers essential compliance updates and guidelines to help employees adhere to company and regulatory standards.

4. HireVue AI Interviews

HireVue

With HireVue AI interviews, candidates record video answers to pre-formulated questions. AI then evaluates the candidates’ skills and attributes. To provide a score and offer feedback, the AI analyzes both spoken and nonspoken indicators, such as

  • Body language
  • Facial expressions
  • Speech patterns

Investment banks like J.P. Morgan, Goldman Sachs, and multinational companies like Unilever, Vodafone, and  Delta Air Lines have used HireVue in their recruitment processes.

ICON, a multinational healthcare company, increased candidate satisfaction by 17% by employing HireVue’s AI interviews. Additionally, HireVue’s AI interviews ensured a more gender-diverse workforce for Unilever.

Use Cases

  • Video Interviewing: Makes it possible for HR teams to perform live and on-demand video interviews. This increases the flexibility and accessibility of the hiring process.
  • AI-Driven Evaluations: Make use of sophisticated algorithms to gauge applicants’ talents and capabilities beyond their resumes.
  • Integration Competencies: Streamlines hiring procedures by integrating easily with Applicant Tracking Systems (ATS) and other HR technologies.

5. Glint’s AI-Powered Surveys

Microsoft Viva Glint, formerly known as Glint’s AI-powered surveys, is a tool for measuring workplace culture and engagement.

It uses artificial intelligence (AI) to evaluate survey data and give businesses useful information about employee satisfaction and performance patterns.

source

Use Cases

  • Teams Integration: Improve notifications and nudge capabilities by facilitating simple communications in the day-to-day flow of work
  • 360 Feedback: Provide employees with a more thorough understanding of their talents and areas for improvement from a variety of perspectives, resulting in improvements to both personal and business performance.
  • Survey Tool: Businesses can utilize Viva Glint’s customisable questionnaires to get detailed input on diversity and inclusion, staff involvement, onboarding, and exit procedures.

Transformative Power of AI Agents in HR

Answering FAQs by employees, including “How do I check my PTO balance?” “What is the procedure for leave approval?” or “What wellness plans are offered to employees?” is an instance where HR teams invest a significant amount of effort. 

AI agents can swiftly address these queries and contribute to effective workplace communication. May it be strategic decision-making or enhancing employee experience, AI agents are culminating in a smart, data-centric approach in HR.

Learn how companies can take control of their employee management journeys using Engagedly’s agentic approach. The intelligent elements of Engagedly, such as the MarissaTM AI assistant, are powered by this architecture. It makes HR operations faster, smarter, and accurate!

Don’t just take our word for it—explore the full suite of Engagedly’s talent management products!

FAQs

How are AI agents used in the recruitment process?

AI agents expedite the hiring process by automating resume screening, candidate outreach, and interview scheduling. Additionally, they use data analysis to find the top talent more quickly.

Can AI agents help with employee onboarding?

Yes, AI agents like Talla automate onboarding, answer FAQs, and deliver policy documents, creating a smooth and consistent new hire experience.

What are some real-world companies using AI in HR?

Firms like Walmart, IBM, Unilever, and LinkedIn use AI in various HR operations.

What benefits do AI agents bring to HR teams?

AI agents offer several key benefits:

  • Reduced time-to-hire
  • Personalized employee development
  • Real-time engagement monitoring
  • Bias-free hiring decisions
  • Streamlined onboarding
  • Improved compliance and audit readiness
  • Enhanced productivity by reducing manual HR tasks

What’s the future of AI in HR?

The AI in HR market is growing rapidly (projected 24.8% CAGR from 2024 to 2030). As AI agents become more sophisticated, they’ll increasingly shape HR into a data-driven, employee-first function—enhancing everything from recruitment to retention.

How do AI agents differ from traditional HR chatbots?

AI agents use advanced machine learning and natural language understanding to respond dynamically, whereas traditional chatbots often rely on static rules and scripted responses.

Do AI agents need training before deployment?

Yes, AI agents typically need to be trained on company-specific data, HR policies, and workflows to ensure relevance and accuracy.

Can AI agents be integrated with existing HR tools like SAP or Workday?

Many AI HR solutions offer APIs or pre-built integrations for popular HRIS, ATS, and LMS platforms, allowing for seamless workflows.

AI in HR: How Artificial Intelligence Is Transforming Human Resources in 2025

What if you could predict which employees are about to leave—before they even say a word?

This isn’t a futuristic fantasy. It’s the new reality of human resources, powered by artificial intelligence.

AI is no longer a tool to simply enhance HR—it’s transforming it from a reactive function into a proactive, strategic force. As remote work becomes the norm, skills become more fluid, and the war for talent intensifies, HR leaders are turning to AI not just to keep up—but to stay ahead.

And they’re moving fast:

  • 92% of organizations plan to increase AI investments within the next three years.
  • Nearly 70% already use AI to guide key HR decisions.
  • 65% of employees are open to AI-powered coworkers.

Why? Because the return on investment is undeniable. AI helps companies:

  • Reduce recruitment costs by up to 30%
  • Cut time-to-hire by 81%
  • Forecast turnover with 87–90% accuracy

Across core functions—from recruitment and onboarding to performance management and DEI—AI is delivering real-time insights, automating administrative tasks, and enabling truly personalized employee experiences.

In this article, we’ll explore how AI is revolutionizing nine essential HR functions and share 15 real-world use cases that show what the future of HR looks like in 2025 and beyond.

Market Insights on the Increasing Impact of AI on HR Functions

Gartner reports that 76% of HR professionals believe that failing to use AI solutions within the next one to two years will make their organizations less successful.

HR leaders are implementing AI solutions to streamline their HR processes and to keep their people operations competitive.

  • Almost 70% of companies are already utilizing AI to inform their HR decisions, according to the Harvard Business Review. Here are some reasons:
  • AI-based HR analytics predict workforce trends with 90% accuracy, and predictive AI can forecast staff turnover with 87% accuracy.
  • 44% of businesses utilize AI to optimize recruitment and talent acquisition. It has been observed that AI hiring tools can also cut recruitment costs by 30%.
  • 80% of enterprises utilize AI in human resource management to support workforce planning, while 70% of employees have access to AI to personalize learning opportunities within their organizations.

The returns on investment are evident; AI in HR accelerates hiring, provides deeper insights and enhanced engagement with candidates, and reduces operational costs. These insights are some reasons why AI in HR has become a strategic imperative.

9 HR Functions that Have Transformed Using AI And Machine Learning

Below are the real use cases of AI in HR that demonstrate what HR teams will look like in 2025 and beyond:

1. People Analytics: Forecast attrition and enhance engagement

People analytics powered by artificial intelligence is changing the way HR professionals predict staff behavior. While measuring attendance, performance data, and survey feedback, AI can accurately predict attrition rates and engagement.

HR teams leverage these insights to be proactive, whether it’s retaining top performers or placating department-specific morale issues.

2. Talent Acquisition and Quality: Smarter Sourcing

Artificial intelligence in hiring automates the process of reviewing resumes, matching candidates’ profiles to job descriptions, and even predicting cultural fit based on previous hires.

Despite being focused on performance and engagement, Engagedly also includes applicant tracking (ATS) capabilities and role-based hiring analytics. These realizations enable hiring managers to predict who will be a better fit and create a strategy for sourcing those candidates faster and more effectively.

3. Onboarding: AI-Powered Workflows / Customization

Onboarding AI automation documents, workflows, schedules, and specific tasks and customizes learning plans for new hires.

Software and tools enable HR managers to assign custom onboarding tasks, track progress, and deliver AI-curated microlearning recommendations by role and department through its onboarding modules.

4. Learning & Development: Skills Gap Analysis

AI customizes training modules to address employees’ specific skill gaps, job roles, and learning preferences, continually evolving as employees develop and learn.

AI in HR facilitates effective learning and upskilling. For instance, the learning and up-skilling solution from Engagedly integrates an AI-driven recommendation engine and employee performance data to bring personalized learning paths. It automatically recommends courses to fill skill gaps (especially for internal transfers and grooming leaders).

5. Performance Management: Feedback in Real Time & SMART Goals

Yearly appraisal and performance management sessions have been replaced by real-time progress tracking. Thanks to AI, continuous feedback, red flags for underperformance, and goal tracking are now delivered on a personalized level.

Here is where tools like Engagedly come into play. Marissa AI, their lead AI assistant, provides predictive performance insights, offers timely feedback, and intelligently automates the creation of SMART goals. Managers can eliminate the guesswork and make more informed evaluations based on data.

6. Talent Management: Career Mapping and Leadership Identification

By assessing employee skills, trends, and aspirations, AI suggests potential career routes and leadership opportunities that are aligned with individual talents and goals. This not only encourages succession planning, but also keeps employees motivated.

Engagedly’s Agentic AI for Talent Management detects emerging engineers by monitoring the development of skills and project contributions. It augments HR roles with defined leadership readiness scores and recommendations on either mentorship or lateral movement.

7. Employee Relations: Chats and Email Sentiment Analysis

AI in HR makes sentiment analysis easier, allowing management to monitor workplace communication (with privacy controls) and detect indicators of unhappiness, stress, or disengagement. It allows HR to respond before there is a problem.

By analyzing tone and emotion in internal messages and survey comments, HR can gain insights into how their employees feel, particularly in hybrid work environments. This increases employee retention and well-being efforts.

8. Data-Driven Decision-Making 

AI in Human Resource Management enables decisions based on patterns rather than guesswork. Whether that’s making a call on how to adjust compensation or running a well-being initiative, AI works on facts and delivers realistic and applicable solutions.

All the data can be converted into the right kind of information and action with tools like analytics dashboards. HR teams are no longer dependent on the monthly reports as they can now react to live trends.

9. Diversity, Equity & Inclusion (DEI): Bias-Free Hiring and Promoting

AI can eliminate bias from hiring and performance evaluations, looking purely at competency-based data. It maintains fairness in processes like recruiting, skill development, and succession planning.

While algorithms are properly audited, AI-powered DEI tools are helping brands toward inclusive cultures. Employee performance systems help avoid subjective feedback and drive metric-based recommendations for all employees.

15 Ways in Which AI is Shaping the Future of HR in 2025

Here are 15 real-world examples of AI’s impact on human resources today:

1. Retention Forecasting: Machine Learning Models

Machine learning in AI mines past patterns to predict future employee behaviors (including resignations).

HR pros use these models to spot risks early on and analyze performance dips, tenure length, feedback sentiment, and absenteeism.

Utilizing retention models drives timely managerial intervention. For instance, Accenture reduced attrition by 20% by implementing personalized career pathways and offering mentorship and upskilling opportunities.

2. AI-Powered Resume Screening

Resume screening is set up with algorithms that classify and rank keywords, phrases, and patterns in resumes based on thousands of hiring decisions.

Recruiters can save time by allowing AI to shortlist the most relevant candidates by context, and not just by keywords.

Some tools have helped companies reduce 30% cost-per-hire and 81% time-to-hire through AI recruitment augmentation.

3. NLP Solutions: Interview and Surveys

NLP processes help identify insights and sentiments and understand intent.
AI can decrypt open-ended responses in employee surveys or video interviews, showcasing hidden problems or strengths.

Several organizations use NLP to evaluate candidates’ qualitative answers, which in turn assist hiring managers in determining a better cultural fit.

4. Behavioral Data from IoT Devices

HR can leverage massive amounts of real-time behavioral data to:

  • Implement safer office policies and practices (or remote work guidelines).
  • Enhance employee experience and comfort
  • Monitor workforce movement and collaboration patterns
  • Support employee well-being
  • Automate facility operations

5. Predictive Analytics for Workforce Planning

AI-powered predictive analysis helps in assessing future staffing needs, budget planning, and talent gaps.

Leaders can plan for future skill gaps, promotions, and hiring needs years in advance. Multinationals utilize predictive workforce planning to forecast leadership succession and optimize training investments.

6. AI in HR for Learning Material and Feedback Generation

Generative AI helps in scripting personalized content like training modules, quizzes, or developmental feedback for employee training and development.

HR’s L&D can customize learning programs in real-time for specific roles or to address performance gaps.

Internal tools can develop training data, which cuts development cycles in half.

7. Compliance Monitoring Tools

AI in human resource management helps in tracking compliance by scanning legal documents and internal records to find non-compliant behaviors.

It can flag early signs of harassment, labor law violations, or data misuse.
Big businesses rely on these compliance bots to ensure GDPR, WCAG, and OSHA compliance while reducing the need for manual audits.

8. AI for Auditing and Risk Monitoring

AI in HR systems helps detect and remove anomalies that may indicate fraud or policy violations.

HR departments gain real-time audit trails and early fraud alerts by detecting:

  • Payroll and benefits-related risks.
  • Unauthorized access to employee data
  • Missing documentation
  • Policy violations
  • Suspicious benefit claims

9. Augmented & Virtual Reality

AR/VR tech offers immersive onboarding and training simulations. HR leaders can walk remote workers through office spaces and engage them in role-play-based training.

Businesses use VR onboarding to shorten ramp-up time and boost employee satisfaction.

10. Real-Time Performance Review with AI Dashboards

AI-powered dashboards compile continuous performance data to track employee progress. HR supervisors can issue feedback in real time through visual performance snapshots.

For instance, Engagedly’s Marissa AI reduces review bias and increases feedback frequency.

11. Sentiment Analysis of Employee Feedback

AI reads emotional tones from survey results, chats, and intranet posts. It detects disengagement or tension before problems escalate.

Tools enable quicker problem-solving and instant feedback by analyzing:

  • Tone, voice, and word choices
  • Sentiment polarity
  • Emotional intensity
  • Trends across departments

12. AI-Driven SMART Goal-Setting Tools

AI creates and tracks SMART goals (specific, measurable, achievable, relevant, time-bound), which become more responsive and adaptive, thus boosting ownership.
For instance, performance systems alert employees regarding their missed targets and offer automated next steps.

13. HR Chatbots and Voice Assistants

AI bots can now instantly answer HR-related queries (benefits, leave, policy) in real time.

Such measures free HR leaders from repetitive queries and further enhance response time. Moreover, their 24/7 availability, quick responses, information on leave policies, benefits eligibility, pay slip downloads, company holidays, and FAQs improve performance and resolve queries instantly.

14. Personalized Employee Journeys

AI in HR designs custom career paths, learning tracks, and team placements.

This strategy aligns personal employee goals with business needs. For instance, Engagedly’s Agentic AI for Talent Management recommends mentors, promotions, or role changes based on live employee data.

15. Automation of Administrative HR Tasks

AI automates routine tasks like leave approvals, payroll, and offboarding.
This reduces manual bottlenecks and error rates. For instance, AI in HR helps with payroll integration and exit task automation, which can save companies thousands of hours in HR every year.

Final Words

AI in HR has liberated HR teams. HR leaders are now strategic enablers. The future HR function is data-led, people-focused, and insight-powered. 

Automated tools like Marissa AI and Agentic AI minimize low-complexity tasks while enabling intelligent, contextual decisions. These tools assist human intelligence rather than replacing it.

Explore Engagedly’s AI-driven HR software suite and drive HR operations in a more interconnected, intelligent, and continuous way. We not only help you streamline HR processes; we empower your teams to make faster, fairer, and more impactful people decisions at scale.

FAQs

Key AI trends in HR include hyper-personalization, the use of ethical AI in hiring, and the implementation of explainable AI for increased transparency. Responsible AI governance is also essential.

2. Will AI replace HR professionals?

No. AI is designed to augment, not replace, human roles. It automates repetitive tasks, delivers data-driven insights, and enhances decision-making—but human judgment, empathy, and relationship-building remain irreplaceable in HR.

3. Is AI in HR only for large enterprises?

Not at all. Small and mid-sized businesses are adopting AI tools too—especially in recruitment, onboarding, and performance management—because many modern HR platforms offer scalable, affordable AI-powered solutions.

4. How can AI help reduce hiring bias?

AI can anonymize resumes, focus on skills over background, and ensure consistent evaluation across candidates. However, ethical AI requires regular auditing to avoid amplifying existing biases in the data it’s trained on.

5. What HR tasks can be automated with AI?

Common tasks include:

  • Resume screening
  • Interview scheduling
  • Leave approvals
  • Payroll processing
  • Onboarding workflows
  • Employee surveys
  • Generating SMART goals
  • Performance tracking

6. How does AI improve employee engagement?

AI tools monitor sentiment in chats, emails, and surveys to detect early signs of disengagement. They also personalize learning, career development, and goal-setting, helping employees feel more supported and valued.

7. What are the risks of using AI in HR?

Risks include:

  • Bias in algorithms if not carefully managed
  • Data privacy concerns
  • Over-reliance on automation without human oversight
  • Employee mistrust if AI use is not transparent

Mitigation starts with responsible AI governance and transparent communication.

8. How does AI personalize learning and development?

AI analyzes an employee’s performance, role, goals, and skill gaps to recommend customized learning paths. It adapts over time, delivering content that grows with the employee’s career trajectory.


16 Must Have Tools For Small Businesses In 2025

Are you interested in scaling up your small business in 2025? If the answer is “yes,” then investing in the right software is your only route to success. 

The right business tools can empower your employees to provide effective solutions to your customers. Moreover, using the right tools can also provide fast and accurate information to enhance the entire customer experience. Much like accounting software can give you accurate financial information, other software such as CRM, performance management, and payroll can also give you data and therefore insights instantaneously.

Thus, having the data to hand is crucial in delivering overall performance improvements. For example, according to a report from Microsoft, 72% of customers say when they contact customer service, they expect an agent to know— 

  • Who are they? 
  • What have they bought? 
  • How have they previously engaged with them? 

This is only possible to deliver accurately when your team has powerful business tools at their disposal. Luckily, there are several tools that small businesses can use to provide better services to their clients and gain a competitive edge in 2025. These include a Sales CRM, employee monitoring, performance development, payment tracking, and others.

However, given the plethora of tools in the market, you may be wondering how can you afford so many different software packages and still stay within a limited budget? With this in mind, we have narrowed down the top 15 essential tools that should be affordable for most small business owners.

Top 15 Small Business Tools for 2025

Do you want to build a high performing team but don’t you have a big budget to hire top talent? If the answer is yes, then the next best thing you can do is get the most out of your existing team members. For example, by using performance management tools, you can monitor your team and provide them with real-time feedback to boost their performance. 

That’s just one example of how software can improve overall performance—below we have a curated list of simple and affordable tools every small business should have in 2025:

1. Engagedly

Best For: Talent & Performance Management Platform 

small business tool for performance management


Engagedly is a new generation, cloud-based solution that focuses on employee engagement and development, performance, and communication in your organization. It encompasses features such as 360-degree feedback, real-time performance management, check-ins, performance appraisals, and an LMS that supports overall organizational development.

The software has built-in gamification and social collaboration tools to better manage your people. In addition, the program lets you interact with employees using employee engagement surveys and directories. 

Top Features 

  • Activity dashboard 
  • Assessment management 
  • Anonymous feedback 
  • Benchmarking 
  • Blended learning 
  • Badge management 
  • Compensation management 
  • Collaboration tool

Pricing Structure:

  • 100% customizable plans

2. ClickUp 

Best For: Smart workflow management 

small business tool for Smart workflow management

Source: ClickUp

ClickUp is a top-rated project management tool for remote and hybrid teams. It is an all-purpose business management platform with chat, scheduling, custom views, and more. 

It is one of the best tools to deploy advanced marketing or sales strategies like account-based marketing or customer segmentation. In fact, many prominent organizations, like Airbnb, Google, and Uber, are using this tool. 

Top Features 

  • Document collaboration 
  • Real-time chat 
  • Whiteboards 
  • Two-factor authentication 
  • Agile reporting 
  • Resource management 
  • Timelines and mind maps

Pricing Structure: 

  • Forever free, up to 100MB storage 
  • Unlimited plan for $5 per user/month
  • Business plan for $12 per user/month
  • Business Plus for $19 per user/month
  • Customizable enterprise plan 

3. Zonka Feedback

Best For: Feedback Surveys and Experience Management

small business tool for Feedback Surveys and Experience Management

Source: Zonka

Zonka Feedback is an easy-to-use customer feedback software and experience management platform that businesses of all sizes use to create intuitive and customized surveys to collect feedback through various channels and work on it to improve customer experience, enhance satisfaction, and prevent churn.

The best thing about the tool is that it empowers you with features like real-time feedback alerts and reports so that you can take appropriate action on feedback at the right time and close the feedback loop to prevent churn before it’s too late. 

Top Features

  • 40+ Ready-to-use Templates
  • Customization of Surveys
  • Multichannel Software
  • Measuring metrics like NPS, CSAT, and CES
  • Advanced Reporting and Dashboard
  • Real-time Feedback notifications and custom alerts
  • Skip Logic, Hide Logic and Survey Redirection

Pricing Structure:

  • A 15-day Free Trial available
  • Paid plans start at $29/month
  • Professional plan for $79/month
  • Growth plan for $169/month
  • Enterprise plan for $429/month

4. TimeCamp

Best For: Time tracking and project profitability measurement 

Small business tool for Time tracking and project profitability measurement

Source: TimeCamp 

TimeCamp is a free and powerful HR technology tool for small teams. Using this software, you will get accurate timesheets to integrate with your accounting software to generate timely payslips. In addition, you can also track your employee performance and project profitability in real-time. 

TimeCamp has a centralized dashboard that allows you to collaborate with your remote, in-house, and freelance employees. In addition, you can integrate TimeCamp with 30+ other apps like Asana, Airtable, ClickUp, GitLab, Google Calendar, Google Docs, etc. 

Top Features 

  • Customizable invoicing 
  • Record billable and non-billable hours 
  • Calendar management 
  • Expenses tracking 
  • Payroll management 
  • Time tracking 
  • Tax calculation 

Pricing Structure:

  • Forever free 
  • Basic plan for $6.3 per user/month 
  • Pro plan for $9 per user/month
  • Customizable enterprise plan 

5. Social Status

Best for: Social Media Analytics

small business tool for Social Media Analytics

Source: SocialStatus

Social Status is a social media analytics and reporting tool. It is perfect for agencies that need a multi-channel analytics dashboard for all their clients. It supports Facebook, Instagram, YouTube, TikTok, LinkedIn, and Twitter. Agencies can easily group client profiles and pages, including Facebook ad accounts, plus they can also do competitor analysis and track influencer marketing campaigns too.

Reports can be white-labeled and completely customized to suit different reporting needs. Boardroom-ready reports can be exported to a range of formats, including CSV, PDF, PowerPoint, and Google Slides.

Top Features:

  • Facebook Analytics
  • Instagram Stories Analytics
  • YouTube Analytics
  • Twitter Analytics
  • LinkedIn Analytics
  • Ads Analytics
  • Competitor Analytics

Pricing Structure: 

  • Forever free 
  • Starter plan for $29 per month
  • Pro plan for $199 per month
  • Business plan for $399 per month
  • Corporate plan for $599 per month 
  • Enterprise plan for $1,499 per month

6. HubSpot CRM

Best For: Lead management 

CRM for small businesses

Source: HubSpot 

HubSpot CRM is a customer relationship management tool suitable for both small and large businesses. It is particularly useful for businesses that want to spend less time on data entry tasks. It helps keep all your contacts, business leads, and database in one place, which allows you to have a deeper understanding of your business.

HubSpot is a cloud-based system that can help align remote and in-house teams. It can streamline sales and marketing operations to boost ROI and optimize inbound marketing strategies to generate high-value leads. 

Top Features 

  • Scheduling appointments 
  • Campaign management 
  • Contact management 
  • License management 
  • Email templates and marketing 
  • Lead distribution, management, and qualification 
  • Sales pipeline management 
  • Task management 

Pricing Structure: 

  • Forever free 
  • Starter plan for $45 per month
  • Professional plan for $1,600 per month 
  • Enterprise plan for $5,000 per month

7. Woorise

Best For: Creating landing pages, quizzes, and contests

small business tool for Creating landing pages, quizzes, and contests

Source: WordPress

Woorise is the best tool for small businesses to collect leads and close them. It is a perfect solution for digital businesses and e-commerce brands that want to capture audience interest and boost sales. 

You can integrate Woorise with multiple other business automation solutions such as AWeber, HubSpot, Zapier, Google Analytics, Bitly, PayPal, Stripe, and more. The tool is quite useful for marketing agencies and social media managers.

Top Features 

  • Awards management 
  • Organize skill contests like photography, essay writing, design, etc.
  • Fraud detection  
  • Form management
  • Judging management
  • Entry management 
  • Multiple language support 

Pricing Structure: 

  • Free forever up to 500 entries 
  • Basic plan for $23 per user/month up to 2,000 entries 
  • Grow plan for $39 per user/month up to 5,000 entries 
  • Pro plan for $79 per user/month up to 20,000 entries 

8. Saleshandy

Best For: Cold email and email tracking 

small business tool for Cold email and email tracking

Source: Saleshandy

Saleshandy is a cold-emailing platform that helps companies increase their email outreach without compromising on quality. The program has the potential to set up hundreds or even thousands of campaigns with multi-stage automated follow-up emails to generate at once. 

You can also merge tags to customize your email campaigns. In addition, you can trigger follow-ups based on the previous email actions like opens or clicks. It is a potential tool for businesses that are looking forward to creating multilayered email marketing campaigns.

Top Features 

  • Stunning email templates 
  • Email campaign management 
  • Content Delivery 
  • Drip campaigns 
  • Campaign analytics 
  • Event-triggered actions 
  • Lead capturing and nurturing 
  • Performance management 

Pricing Structure: 

  • A 14-day free trial
  • Cold emailing packages for $25 and $60 per user/month 
  • Email tracking is free forever. Paid plans start at $9, $22 and $59 per user/month

9. SocialPilot

Best For: Social media marketing 

tools for small businesses

Source: Social Pilot

SocialPilot has everything that you need to run result-driven social media marketing campaigns in one place. It can manage all your social media accounts and help you automate social media operations, including post scheduling, insight reports, and monitoring engagement.

SocialPilot is designed to bring all social media activities under one roof, from replying to Instagram stories to responding to Facebook page comments. You can also easily collaborate with your team members or coordinate with your clients using the software. 

Another great feature is  that you can customize SocialPilot to match your brand identity. You can also generate branded analytics reports and provide a seamless branded experience to your clients from a centralized dashboard. When you plan to grow your small business on social media, SocialPilot is a great place to start.

Top Features 

  • Automatic post publishing 
  • Content management 
  • Conversion tracking 
  • Engagement tracking 
  • Influencer tracking 
  • Lead management 
  • Multi-account management 
  • Multiple campaign management 

Pricing Structure: 

  • Agency plan for $127.5 per month 
  • Studio plan for $85 per month 
  • Small team plan for $42.5 per month 
  • Enterprise plan is fully customizable 

10. GrowSurf

Best For: Customer acquisition and cost management 

small business tool for Customer acquisition and cost management

Source: GrowSurf

GrowSurf can help you to automate customer acquisition at the lowest possible cost. It helps both B2B and B2C tech companies to create referral programs to get new customers on autopilot mode. You can also create customer-to-customer referral programs to spread word of mouth about your brand. 

GrowSurf offers a 312% return on investment, 30% new referral leads and 15% of ARR from referrals. It comes with an automatic link generator that creates unique links for each user, so they don’t have to sign up to promote your products. 

Top Features 

  • Affiliate management 
  • Communication management 
  • Contact management 
  • Fraud detection 
  • Referral templates 
  • Referral tracking 
  • Rewards management 
  • Social engagement 

Pricing Structure:

  • A 14-day free trial 
  • 100% customizable plans 

11. InvoiceBerry

Best For: Online invoicing software 

Online invoicing software for small businesses

Source: InfoBerry

InvoiceBerry is an online invoicing solution for small businesses and freelancers. It is designed to make invoice and expense tracking processes quick and easy. 

The software has a vast array of professional invoice templates that you can customize with your logo, customer information, and other details. Additionally, you can send invoices via email within the software in PDF format.

Top Features 

  • Contact database 
  • Customizable invoice 
  • Online invoicing 
  • Recurring billing 
  • Multiple currency support
  • Easily print out invoices 
  • Invoice templates 

Pricing Structure: 

  • A 14-day free trial 
  • Solo plan for $15 per month 
  • Pro plan for $30 per month 

12. ProProfs Chat

Best For: Live chat with website visitors

small business tool for Live chat with website visitors

Source: ProProfs

ProProfs Chat is a simple online live chat platform to engage with your website visitors. The software helps you resolve customers’ issues in real-time. 

You can improve your overall customer experience with this instant support system. ProProfs Chat can also help you reduce tickets, improve customer response times, and increase sales and ROI.

You can create proactive live chat pop-ups or customize greetings to boost engagement. Also, it lets you add announcements to notify website visitors about new service updates and products. 

Top Features 

  • Canned responses 
  • Customizable branding 
  • Proactive chat 
  • Screen sharing 
  • 50+ integrations 
  • Routing 
  • Lead capturing 
  • Chat transcripts 

Pricing Structure: 

  • Free forever with basic features
  • Essential plan for $15 per user/month
  • Premium plan for $25 per user/month

13. Google Workspace 

Best For: Business collaboration 

Business collaboration software for small businesses

Source: Google Blog

Google Workspace is an intuitive collaboration platform designed for all-size businesses to manage multiple operations. It helps businesses to record team meetings, send emails, and reserve conference rooms. 

The best thing about the tool is that it has a noise-cancellation feature, which makes it a perfect contact center solution for sales teams. 

In addition, it offers features like attendance tracking, team messaging, compliance management, shared calendars, and more. You can edit and share documents, slides, and spreadsheets among your team members in real-time. 

Top Features 

  • Content management 
  • Commenting on documents 
  • Backup and recovery 
  • Customizable branding 
  • Communication management 
  • Data synchronization 

Pricing Structure: 

  • A 14-day free trial 
  • Business starter plan for $6 per user/month 
  • Business standard plan for $12 per user/month 
  • Business plus for $18 per user/month 
  • Customizable enterprise plan

14. FreshBooks

Best For – Managing your financial records

small business tool for Managing your financial records

Source: Fresh Books

FreshBooks is powerful and intuitive accounting software that makes it easy for small businesses to keep track of their finances. With its user-friendly interface, streamlined workflows, and advanced features like automated invoicing, expense tracking, and time-saving reporting tools, Freshbooks allows you to easily manage your books while saving more time to focus on growing your business. 

Whether you’re just starting out or are an established small business, Freshbooks has the features and flexibility you need to take your finances to the next level.

You can also download free accounting templates, invoicing templates, and balance sheets to easily manage your finances.

Top features: 

  • User-friendly interface
  • Streamlined workflows
  • Automated invoicing
  • Expense tracking
  • Time-saving reporting tools
  • Flexible and scalable plans

FreshBooks Pricing plans:

  • Free Trial-Available
  • Basic-$15/month
  • Plus-$25/month
  • Premium-$50/month

15. CloudTalk

Best for: Customer support

Customer support tool for small businesses

Source: CloudTalk

CloudTalk is a powerful VoIP (Voice over Internet Protocol) platform that businesses can use to expand, scale, and improve their customer support. Unlike traditional brick-and-mortar contact centers, CloudTalk allows agents to work whenever, wherever, and from whatever device they like – as long as it has a microphone and an internet connection.

The cloud-based contact center software offers a wide selection of time-saving and experience-enhancing features, including click-to-call, call forwarding, and analytics. In total, there are over 70 features from which users can pick and choose to create a contact center experience that fits both their business needs and customer requirements.

Top Features:

  • Click-to-call
  • Call queueing
  • Call recording
  • CRM integration
  • Skill-based routing
  • Automatic Call Distribution (ACD)
  • International and toll-free numbers

CloudTalk Pricing Plans:

  • 14-day free trial
  • Starter-$25 per user/month
  • Essential-$30 per user/month
  • Pro-$50 per user/month

15. ProofHub

Proofhub

ProofHub is all-in project management and team collaboration software for teams of all sizes. It simplifies project management by bringing everything, such as project planning, task delegation, progress tracking, and productivity monitoring, into a centralized location, eliminating information gaps and streamlining workflows. 

ProofHub also offers several collaboration features to ensure efficient teamwork. You can discuss projects in real-time, share notes, exchange feedback with instant chat, and keep all important files and documents in one place for easy access and retrieval. This minimizes miscommunication and ensures everyone stays aligned on project goals and deadlines. The best part is that you will get all these at flat pricing, with no per-user fee

16. DocHipo

Best for: On-brand document designing

DocHipo is a widely admired document design tool super-handy for small businesses. It lets you create eye-catching business cards, posters, brochures, social media posts, web banners, digital advertisement graphics, and more.

Whether you’re launching a new product or service, announcing special offers and discounts, promoting a seasonal or festive sale, inviting for grand opening, the tool provides fully customizable templates across industries. 

You can customize the templates using preset or custom fonts, stock images and videos, backgrounds, color themes, graphic assets including themed illustrations, text frames, and animations. DocHipo’s uncluttered and intuitive interface and well-organized design elements make it easy to create business-ready designs within minutes. 

Top Features

  • Professionally-designed templates
  • Exclusive vector design assets
  • Drag-and-drop editor
  • Brand Kit
  • AI writer
  • AI image generator
  • Real-time team collaboration

Pricing Structure: 

  • Forever free plan
  • Pro plan for $7.5 per user/month 
  • Pro Unlimited plan for $225 unlimited users/month

Let’s Get the Best Small Business Tools To Scale Up! 

There you go- you have just learned about all the awesome tools that can help you scale up your operations in 2025. 

This list contains the perfect small business tools to manage finances, marketing, lead generation, and other operations. 

You can use the trial versions of the tools listed above before making longer-term commitments. That way, you can better understand the individual features and whether they are suitable and beneficial for your business. 


Looking forward to enhancing employee engagement, productivity, and development of your workforce? Talk to our experts for free consultation.