AI reshapes workplace learning as L&D budgets & metrics evolve

New research from LearnUpon finds that workplace learning and development is being redefined by artificial intelligence, data-driven strategies, and increased budget allocation among businesses in the US, UK, Australia, and New Zealand.

The inaugural "State of Learning and Development Report," compiled from responses by 600 learning and development (L&D) leaders, indicates significant shifts in priorities and concerns as AI becomes increasingly influential in shaping the sector.

AI disruption

The report reveals that 43% of L&D leaders believe that AI could fully replace their roles, while another 40% expect partial changes due to AI-driven disruption. Only a small minority, 3%, foresee little to no impact from AI in their work. Sectors such as retail, education, software, and technology appear particularly alert to the potential of AI to replace traditional functions.

To address these challenges, teams are investing in AI literacy and identifying ways for AI to enable, rather than eliminate, human roles. The report notes a strategic emphasis on building skills that complement AI, reflecting a pragmatic approach towards technological disruption.

Budget growth

Despite ongoing economic pressures, L&D budgets have increased across all surveyed regions. In 2025, 84% of respondents in Australia and New Zealand reported a budget increase, along with 70% in the UK and 66% in the US. This upward trend indicates that L&D is securing greater importance within organisational leadership agendas.

Changing measurement metrics

The research finds growing confidence among L&D professionals in measuring the effectiveness of their programmes, with 91% stating they do so effectively and 44% expressing high confidence in their approach. Although traditional metrics like completion rates (34%) and learner satisfaction (30%) remain relevant, an equal number (34%) now monitor broader indicators such as skill development and knowledge retention. This movement towards tracking business-aligned outcomes suggests a shift in perception of learning as a contributor to organisational performance.

Shifting priorities

LearnUpon's research identifies integrating L&D with overall business strategy (36%), fostering learning ecosystems (34%), and employing data-driven decision-making (34%) as top priorities for 2025. Notably, employee well-being and mental health have surged in prominence, with 44% of leaders viewing them as the most impactful factors shaping L&D programmes, just ahead of AI-powered learning and microlearning formats, each cited by 42% of respondents. This highlights a growing commitment to flexible and sustainable learning experiences designed around individual needs.

Future capabilities

L&D leaders are focusing on developing skills crucial to future business demands. According to the report, data analytics and reporting (56%), AI and machine learning (53%), change management and leadership (52%), and expertise in learning technologies (51%) form the list of top skills required in the year ahead. These areas reflect both the opportunities and the demands created by digital transformation in learning.

Enduring challenges

The sector continues to grapple with key challenges, including talent acquisition and retention (32%), adapting to rapid change - particularly around AI adoption (31%) - and aligning L&D initiatives with business strategy (30%). Measuring the return on investment and demonstrating impact remain ongoing issues for 30% and 29% of leaders, respectively, underscoring the continued need for robust strategies and tools.

"Today, L&D leaders are being asked to do much more than just onboard new hires or fill knowledge gaps. Effective learning programs are now an opportunity to reshape the employee experience, drive performance, and create a greater sense of stability across the business," said Brendan Noud, CEO and co-founder of LearnUpon. "Progress comes from making the right moves in the right order - investing in your team's skills and agility, choosing technology that truly works together, and measuring what matters for better buy-in. Do that, and today's constraints quickly turn into tomorrow's advantages for employees, leaders, and the business."

The report was conducted by Censuswide, following the Market Research Society code of conduct as well as ESOMAR principles, with data collection taking place in April 2025.