Why Phenom’s acquisition of Included AI matters for people analytics
Phenom’s acquisition of Included (included.ai) is an important development in the people analytics market. While Mergers and Acquisitions (M&As) are common in the Human Resources (HR) technology space, this deal stands out because of the kind of capabilities Phenom is bringing into its platform.
At its core, this acquisition reflects how people analytics is changing. Organizations today have more workforce data than ever before. However, turning that data into useful insights remains a challenge. Phenom’s move to acquire Included shows how vendors are responding to this gap by investing in Artificial Intelligence (AI)-led, easier-to-use analytics.
Reach out to discuss this topic in depth.
The ongoing challenge with people data
Most enterprises already collect large amounts of HR data. This includes data from HR systems, recruiting platforms, engagement tools, learning systems, and compensation databases. The problem is not data availability. The problem is that this data often sits in different systems, follows different definitions, and varies in quality.
As a result, HR teams spend a lot of time cleaning data and creating reports. Business leaders, meanwhile, wait for answers to basic questions about hiring, attrition, skills, or workforce costs.
Everest Group has been tracking the people analytics market for several years, and this challenge comes up repeatedly in research and client discussions. Even organizations that invest in analytics tools often struggle to scale their use beyond a small group of specialists. This has limited the impact people analytics can have on everyday workforce decisions.
What Included brings to Phenom
Included has built its platform around solving these exact problems. Instead of focusing only on dashboards, it emphasizes making analytics easier to use and more relevant for decision-makers.
One key area is data integration and standardization. Included focuses on bringing data together from different HR systems and aligning it using a common data model. This helps reduce confusion caused by different definitions of the same metric. Everest Group research has consistently shown that data quality and consistency are critical foundations for effective people analytics, and this is an area where many organizations still struggle.
Another important capability is natural-language analytics. Included allows users to ask questions in simple language and receive clear, written responses instead of complex charts. This approach lowers the barrier to using analytics. Managers and leaders do not need to be experts in data or Business Intelligence (BI) tools to understand what is happening in their workforce.
Included also focuses on turning insights into action. Rather than just showing trends, the platform highlights risks, patterns, and possible next steps. This aligns with what Everest Group has observed in the market: buyers increasingly want analytics that support decisions, not just reporting.
Why this matters for Phenom
For Phenom, this acquisition strengthens its workforce intelligence offering. Our research shows that the term “Workforce Intelligence” is one of the most commonly used words in the HR world after AI. It has multiple interpretations based on the use cases organizations are trying to solve with the data and there is also a push from the vendors on their definition of workforce intelligence.
Phenom is already known for its focus on talent experience across hiring, development, and retention. By adding Included’s analytics capabilities, Phenom is aiming to give customers deeper insight into their workforce and help them act on those insights faster.
This also reflects a broader trend in the HR technology market. Platform providers are increasingly acquiring specialist AI capabilities instead of building everything in-house. This helps them move faster and respond to changing buyer expectations.
How this fits with broader market trends
Everest Group’s research on people analytics platforms shows that the market is moving in a clear direction. Providers are investing more in AI-driven data management, self-service analytics, and predictive insights. Conversational interfaces and role-based access are also becoming more common. This is also highlighted in our recent report titled: People Analytics in the age of AI
The capabilities that Included brings, unified data, natural-language querying, and actionable insights, are the same areas where many other providers are investing today. In that sense, this acquisition reflects a broader shift in the market rather than a one-off move.
What buyers should watch next
For enterprises evaluating people analytics solutions, the key question will be execution. Buyers will want to see how well Included’s capabilities are integrated into Phenom’s platform and how easy it is to trust and act on the insights generated by AI.
More broadly, this deal highlights an important point: people analytics is moving away from complex tools used by a few experts. It is becoming simpler, more accessible, and more focused on real decisions. Vendors that can combine strong data foundations with easy-to-use AI will be better positioned to support this shift.
Phenom’s acquisition of Included is a clear signal of where the people analytics market is headed, and what buyers are likely to expect in the coming years.
If you enjoyed this blog, check out the report People Analytics in the Age of AI which delves deeper into topic of how AI is impacting the world of people analytics.
If you’d like to discuss this topic in more depth, please contact Sharath Hari ([email protected]).