What Has Been the Growth of the AI In Talent Acquisition Market So Far?
The ai in talent acquisition market has seen considerable growth due to a variety of factors.
• The market size of AI in talent acquisition has seen a swift expansion in the past few years. There will be a rise from $1.13 $ billion in 2024 to $1.35 $ billion in 2025, reflecting a compound annual growth rate (CAGR) of 18.9%.
The growth noted in the historic period is due to the automation of mundane tasks, better candidate matching, insight driven by data, improved candidate experience, and decreased costs.
How Will the AI In Talent Acquisition Market?
The ai in talent acquisition market is expected to maintain its strong growth trajectory in upcoming years.
• Over the coming years, growth will surge in the AI in talent acquisition market, with predictions of reaching $2.67 billion by 2029 at a compound annual growth rate (CAGR) of 18.6%.
The growth during the forecast period is anticipated due to progress in AI technology, an increase in remote work and international talent pools, bettered candidate experience, boosted recruitment figures and reporting, and superior screening and matching procedures. The forecast period also sees major trends such as advancements in natural language processing (NLP), collaboration with other HR technologies, personalised candidate engagement, optimised predictive analytics, and AI capability expansion.
What Key Factors and Trends Are Driving The Growth AI In Talent Acquisition Market?
The growth of artificial intelligence in the talent acquisition market is anticipated to benefit from increased adoption of remote work. Remote work, commonly known as telecommuting or working from home, involves employees carrying out their responsibilities from a place other than the traditional office environment. Its popularity is rising due to the level of flexibility it offers, technology advances, and the pursuance for improved work-life balance. In this context, AI contributes significantly by automating applicant filtering, enhancing job-role pairing, and simplifying recruitment processes within varied and global applicant groups. As an illustration, data from the Bureau of Labor Statistics, a part of the United States Department of Labor, demonstrated that in August 2023 around 19.5% of laborers were teleworking or gaining pay from home, preserving a remote work rate between 17.9% and 20.0% from October 2022 through August 2023. Consequently, the trend towards remote work is fueling the expansion of AI in the talent acquisition market.
What Key Areas Define The Segmentation Of The Global AI In Talent Acquisition Market?
The AI in talent acquisitionmarket covered in this report is segmented –
1) By Component: Solution, Services
2) By Application: Candidate Sourcing, Resume Screening, Interview Scheduling, Candidate Engagement, Other Applications
3) By Industry Vertical: Information Technology (IT) And Telecommunication, Banking Financial Services and Insurance (BFSI), Healthcare, Retail And E-Commerce, Manufacturing, Other Industry Verticals
Subsegments:
1) By Solution: AI-Powered Recruiting Software, Applicant Tracking Systems (ATS) With AI Integration, Candidate Screening And Matching Solutions, Predictive Analytics For Talent Acquisition, AI-Based Interviewing Platforms, Chatbots For Recruitment, AI-Powered Talent Sourcing Tools, Candidate Experience Enhancement Solutions
2) By Services: AI Integration And Implementation Services, Consulting Services For Talent Acquisition Strategy, AI-Driven Recruitment Process Outsourcing (RPO), Talent Analytics And Reporting Services, Employee Onboarding Services, Custom AI Model Training Services, Post-Implementation Support And Maintenance
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How Are Emerging Trends Reshaping The Dynamics Of The AI In Talent Acquisition Market?
Leading corporations in the AI talent acquisition market are intensifying their efforts on the creation of novel solutions such as AI-integrated recruitment instruments to maintain their market standing. These AI-enabled recruitment tools leverage artificial intelligence to expedite and optimize recruitment procedures, such as candidate sourcing, CV screening, interview coordination, and applicant interaction. For example, in April 2023, Indeed, a US-based job company, introduced a new AI-integrated tool known as Smart Sourcing. This tool aims to streamline the recruitment procedure for employers. Smart Sourcing gives employers entry to a massive talent pool of approximately 300 million applicants globally using profiles and CVs available on the platform. Through an advanced AI matching engine, it quickly identifies the most suitable candidates for specific job vacancies based on skills, experience, and credentials. Employers are able to efficiently assess these matched candidates, engage with them directly, and expedite their recruitment decisions.
Who Are the Key Players In The AI In Talent Acquisition Market?
Major companies operating in the AI in talent acquisition market are:
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Cornerstone OnDemand Inc.
• Cielo Talent
• HackerRank
• Phenom People
• Bullhorn Inc.
• iCIMS Inc.
• Greenhouse Software
• SmartRecruiters Inc.
• Eightfold.ai
• Visier Inc.
• CEIPAL Corp.
• Jobvite Inc.
• HireVue
• Beamery
• Talview
• Hiretual
• Yello Co
• Textio
• XOR
• Ideal
• Ascendify
• Pymetrics
• Recruiterbox
• Clinch
What Is The Most Dominant Region In The AI In Talent Acquisition Market?
North America was the largest region in the AI in talent acquisition market in 2024. The regions covered in the AI in talent acquisition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
