Learning remains a business priority, though the focus is sometimes misplaced. Here’s a look at the numbers and why it might be time to rethink where your efforts are going. 

ATD’s latest State of the Industry report shares a detailed look at where talent development stands today and where it’s headed. The good news? Learning leaders are feeling slightly more confident about the future. The TD Executive Confidence Index rose to 67.2 in 2024, showing a more optimistic outlook across the board. That mirrors findings from our state of learning report, where 52% of learning professionals said they feel prepared or very prepared to handle uncertainty and change in the months ahead. 

But that optimism comes with a reality check. 

The data also shows that learning hours and spending continue to decline, even as skill demands rise and AI changes the way we work. Employees want more development, not less. And organizations that invest wisely now will be better positioned to retain talent, boost productivity, and stay competitive in a shifting market.  

We read the full report (so you don’t have to, but we still highly recommend it) and pulled out the most relevant takeaways for today’s learning leaders, plus what to do next. 

8 takeaways from ATD’s 2025 State of the Industry report 

While the report covers a lot of ground, a few trends rise to the top, and not just because they’re backed by charts and percentages. These are the shifts that are already shaping how teams learn, grow, and get things done. 

Some takeaways confirm what you already suspected. Others might surprise you. Either way, the message is clear: now’s the time to get smarter about how we approach learning.  

Or, to quote regional manager and part-time thought leader Michael Scott: “Sometimes I start a sentence and I don’t even know where it’s going. I just hope I find it along the way.” 

Let’s make sure your learning strategy isn’t doing the same. Fortunately, you don’t have to wing it. Here are eight takeaways from the report that can help steer your learning strategy in the right direction. 

Takeaway 1: Learning hours are down, but demand is up 

According to the report, employees received an average of just 13.7 hours of formal learning in 2024. That’s a steep drop from 17.4 hours the year before, and nearly a 60% decline since 2020. 

Meanwhile, expectations for skills growth are only increasing. Whether it’s adapting to AI tools, picking up new technologies, or developing soft skills to lead hybrid teams, employees want and need more training time. 

When formal learning time goes down, the pressure on each minute of training goes up. And without enough development, employees are more likely to feel unsupported, fall behind, or disengage altogether. The cost isn’t only a slower ramp-up; it’s lower confidence, productivity, and retention. 

That’s why more organizations are leaning into short-form formats like microlearning and embedded, on-the-job training. These approaches help employees build skills in the flow of work, without taking them away from it. 

The key takeaway is that formal learning time may be down, but the opportunity to make it more impactful is bigger than ever.

Takeaway 2: Budgets are shrinking while skill gaps are growing 

In 2024, organizations spent an average of $1,254 per employee on direct learning costs, a slight drop from $1,283 the year before. And while the decrease might seem minor, it reflects a bigger trend: learning budgets aren’t growing to match the speed of change. 

The reality is that it’s a risky time to cut back. With AI, hybrid and remote work, and shifting job demands, this is exactly when learning needs more support instead of less.  

And the problem isn’t simply smaller budgets, it’s how they’re being stretched across outdated programs, low-impact content, and one-size-fits-all approaches. If you're not investing in skills that directly support business goals, you're spending reactively versus strategically. 

Learning teams that advocate for targeted, measurable development will be better positioned to handle change, support retention, and boost productivity. In this climate, learning isn’t overhead, it’s how companies stay competitive. 

Takeaway 3: Learning has a bigger voice in the boardroom 

75% of organizations say their talent development function has a seat on the senior leadership team, up from just 65% last year. This shift means learning leaders have more influence where it counts.

When L&D is involved in executive conversations, it’s easier to secure buy-in, align learning with company strategy, and show the value of development programs. And it benefits employees, too. When learning is baked into company strategy, it’s more likely to be relevant, consistent, and accessible rather than a one-off initiative. 

But with greater visibility comes higher expectations. Leaders don’t just want to hear about completions: they want to see how learning drives productivity, retention, customer satisfaction, and revenue. 

The opportunity? Use this seat at the table to report on more than completion rates and start connecting your strategy to the metrics that matter most. 

Takeaway 4: Leadership and role-based training still carry weight 

Leadership training continues to be a core focus for most organizations. In 2024, 90% of companies offered managerial and supervisory training, and 69% provided executive development. Nearly half plan to increase their managerial training efforts in the future. 

Why? Because when you invest in your leaders, you’re investing in everyone they lead. Strong leadership sets the tone across teams, departments, and locations. It’s how you build trust, boost performance, and scale a healthy workplace culture over time. 

And there’s urgency behind that focus. A 2024 ATD study found that more than 90% of organizations are facing a major or minor leadership skills gap. That kind of gap doesn’t stay contained; it shows up in performance issues, stalled growth, and employee churn. 

That’s why leadership development can’t be a one-off effort. It needs structure and a clear connection to business outcomes. A strategic learning system makes that possible, helping organizations deliver tailored programs, track progress, and support leaders at every level. 

Takeaway 5: AI training is picking up speed 

A takeaway that’s unsurprising to us all: AI is still a priority for L&D. This year, 55% of organizations reported offering AI training, both technical (like machine learning and programming) and practical (like prompt writing and AI ethics). That’s up from 46% and 45%, respectively, the year before. 

And the momentum isn’t slowing down. Around two-thirds of companies expect to increase AI training in the future, and it tracks with what’s happening. AI is doing more than changing how we work; it’s changing how we learn. 

But here’s the gap: while more organizations are offering AI training, plenty of organizations haven’t jumped in yet. And many of the ones who have are still in the early stages, focusing on pilots or experimenting with basic tools. 

That means there’s a real opportunity for L&D to lead the charge. Not by building complex, technical courses for data scientists, but by equipping all employees with practical AI skills they can apply right away. Think: how to write better prompts, how to use AI responsibly, and how to work more efficiently alongside AI tools. 

Read how Atlassian boosted AI adoption with Absorb LMS. 

Takeaway 6: On-the-job learning is doing more than you think 

On-the-job learning deserves more credit. Not all learning happens in a classroom or even in your learning management system (LMS). According to the report, many organizations are leaning into methods like mentoring (67%) and coaching (72%). 

These experiences turn everyday work into real development. They help employees apply new skills in context, build confidence, and stay engaged, without stepping away from their day-to-day work. 

The catch? These moments are harder to track and scale without the right support. 

That’s why more companies are turning to tools like Together mentoring software, which help structure and measure mentoring and coaching programs, making these informal experiences part of a formal learning strategy. On-the-job learning doesn’t (and shouldn’t) have to live off the radar. 

Takeaway 7: Tech-based learning isn’t a trend, it’s the new baseline 

From microlearning to simulations, tech-driven training is now standard across most organizations. The report found that 66% use microlearning, 69% use simulations or scenario-based learning, and over half have explored immersive options like augmented reality or virtual reality.  

What’s more, 40% are already using AI in learning, with another 36% considering it. That’s a big shift from traditional methods and a sign that learning is being built to fit how people actually work and learn today. 

Short-form, interactive, and embedded learning isn’t just convenient, it’s also incredibly effective. Studies have shown that switching to microlearning can boost retention rates by 20% or more. Another study showed it can improve knowledge retention up to 60% compared to traditional methods. 

 It’s the kind of learning that helps employees stay interested, apply what they’ve learned, and fit development into their daily routine, without bogging down their schedule. If your learning still lives in long courses or clunky systems, it might be time for a refresh. 

Takeaway 8: Now is the time to measure what matters 

The most common ways organizations measure learning performance are employee satisfaction (70%) and retention (62%). Solid starting points, but they only scratch the surface.  

This year’s report also shows that more companies are beginning to track productivity (62%), customer satisfaction (61%), and even revenue and profitability (53% and 50%, respectively). Similarly, that’s progress, but there’s still room to grow.  

Our state of learning report echoed this gap. While 90% of learning leaders say measuring impact is critical, only 25% are tracking business outcomes.

That means most teams are missing key opportunities to show real value.  To build a strategic learning function, you need to connect training efforts to all of the results your exec team cares about, like time to productivity, quality improvements, and reduced support costs. Some teams are already measuring these outcomes, but the vast majority are still catching up.

If you’re not tracking impact, you’re not making a case for more investment. 

What to do with all this data 

Thinking about tucking this info away in your back pocket to never be seen again? We beg you, think again. The 2025 State of the Industry report makes one thing clear: confidence in learning is growing, but so are expectations. Leaders expect learning to do more than check a box. They want to see how it supports growth, improves performance, and helps their people keep up with constant change. And they’re not wrong to ask.  

At the same time, learning teams are under pressure to do more with less: fewer hours, tighter budgets, and broader skill demands. That’s why now is the time to be more strategic and proactive rather than reactive.  Start by focusing on what matters most:  

• Are we spending our learning budget where it moves the needle? 
• Are we delivering training that fits into how people actually work? 
• Are we measuring outcomes that tie back to business goals? 

Small shifts, like tracking impact, supporting on-the-job learning, or investing in AI training, can lead to big results. Because when learning aligns with business strategy, everyone wins.  

Want to see how your current efforts stack up and where else you can improve? Download the full 2025 State of the Industry Report.