How to Avoid a Bloated HR Tech Stack: Streamlining AI Tools in 2025

Modern HR teams rarely run on entirely manual setups. They often use multiple digital tools, platforms, technologies, and software to handle their various responsibilities. This technology toolkit is known as an HR tech stack.  

Artificial Intelligence (AI) plays a prominent role in today’s HR tech stack. Recently, AI platform offerings have expanded to cater to different HR duties. For recruitment and talent management, there are tools like Cangrade and HireVue, while platforms like Docebo support employee onboarding and training.

Neocase is available for case management, while ADP and Workday are popular for compensation benchmarking and benefits optimization.      

However, the availability of multiple AI tools for HR does not imply that they should be adopted recklessly. This will only lead to a bloated HR tech stack—an inefficient and complex cluster of HR software and technologies with many redundant and underutilised tools. 

A bloated HR tech stack is a manifestation of tech sprawl within the HR department, and its causes can include:

• The absence of a defined HR tech adoption strategy
• A change in HR leadership and priorities
• The HR team being unaware of certain functionalities of already-adopted tools
• Hasty digitization    

Unfortunately, many HR teams have fallen into this snare. HR teams currently use more than twice the number of digital platforms they were using five years ago, and HR employees in a Capterra study say 50% of their software tools are redundant.     

Ideally, HR tech tools should function as a unified system instead of a riot of platforms. Let’s unpack how you can streamline your AI tools for HR to prevent a bloated HR tech stack in 2025.     

Problems of A Bloated HR Tech Stack

A bloated HR tech stack presents potential issues to the HR team in particular and to the organization as a whole. To begin with, it can create integration complications. Where various systems lack compatibility, there will be a need for costly middleware and custom development.

Team members will also resort to manual data transfers, facing the risk of duplication, increased errors, and a waste of time. 

This cumbersome collection of technologies can lead to a poor user experience for your employees because they’ll be forced to toggle and adapt to multiple interfaces. The inconsistency across various platforms can also result in confusion and low employee engagement. 

Your organization will grapple with high costs as it pays for redundant tools and overlapping functionalities. There will also be hidden costs for tool maintenance and implementation, as well as employee training. 

Heightened security and compliance risks also come into the picture; with more tools come more endpoints to secure. Ensuring consistent compliance with data regulations can become more difficult, increasing the possibility of data leaks.

An unwieldy HR tech stack can hardly support HR or overall business goals. This is because the technology choices are mainly driven by short-term needs. Being reactive and lacking a strong HR tech adoption strategy, they can stifle organizational agility and innovation.       

How to Streamline Your AI Tools For More Efficiency

Here are practical steps on how to streamline your AI tools to create a lean and effective HR tech stack. 

1. Assess Your Existing HR Tech Stack

Clarity is crucial to determine what needs cutting. Streamlining your AI tools requires a thorough audit of all your current HR platforms. It’s important to make a detailed list of all the HR software you have. Look out for overlaps and find out tools that aren’t being used to their full potential.

This will help you gauge the actual value and implementation of each technology in your HR tech stack.   

2. Align AI Tools With Strategic HR Priorities

Purpose drives precision. The next step is to identify your core HR needs and align your platforms of choice with them. This ensures that your AI adoption is guided by strategy, ensuring that it serves a clear, measurable purpose. 

Typical HR priorities include talent acquisition, workforce planning, compensation, learning and development. You need to focus on AI tools that directly power these HR goals.    

3. Emphasise Interoperability and Cross-Functional Input

Think of interoperability as the bloodstream of a healthy HR tech stack—without it, the stack will crumble. Cross-functional input ensures that HR does not operate in isolation. 

You want to build a truly connected system, so you must sync data across the various tools. Consider implementing APIs or middleware for this purpose. Avoid isolated buying decisions; involve IT and compliance teams and get their input before adopting any technology.  

4. Provide Change Management Support

Change can be uncomfortable, particularly when it involves legacy systems. Streamlining AI tools for HR and building an agile HR tech stack won’t come to fruition if your team members don’t use the tools. 

Change management support can facilitate the adjustment. Ensure that HR team members are trained on the new software. Leaders should also use these new tools to encourage team-wide adoption. 

AI tools can propel HR functions exponentially, but indiscriminate adoption will create a sluggish, lumbering HR tech stack. Leverage these pointers to streamline your AI tools and maintain an efficient HR toolkit.