How Has The Artificial Intelligence in HR Market Size Evolved Historically?
The artificial intelligence in hr market has seen considerable growth due to a variety of factors.
•The market for artificial intelligence in human resources has been expanding quickly in recent times. The market, which was at $6.05 billion in 2024, is predicted to reach $6.99 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 15.6%.
The notable growth observed in the historic phase can be traced back to factors such as increasing costs of talent acquisition and management, the surge in data and analytical capabilities, a growing demand for individualized career progression and employee experience, issues pertaining to compliance and risk management, competitive strains, and the successful initiatives of early adopters.
What Will Be The Artificial Intelligence in HR Market Size In The Future?
The artificial intelligence in hr market is expected to maintain its strong growth trajectory in upcoming years.
• The market for artificial intelligence in HR is anticipated to expand immensely in the forthcoming years. The market value is projected to climb to $14.08 billion by 2029, maintaining a compound annual growth rate (CAGR) of 19.1%.
The escalation during this forecast period can be attributed to factors such as a heightened focus on employee wellbeing and engagement, tailored individual development, improved recruitment and retention tactics, accountability in AI deployment, talent assessment, and readiness for future work patterns. The chief patterns predicted during this period encompass inventive solutions, communicative AI chatbots, predictive performance review, data anonymization and encryption, guidance and career growth, and strategic alliances.
What Are The Primary Growth Drivers In The Artificial Intelligence in HR Market?
An increase in the need for automation in human resources processes is predicted to fuel the expansion of artificial intelligence (AI) within the HR sector in the future. The concept of automating HR activities involves employing technology, such as software systems, to optimize and automate a variety of administrative and redundant tasks in the HR department. AI becomes a valuable instrument in this automation, enhancing and mechanizing HR processes like candidate screening, recruitment, data entry, workflow, and data handling, using AI capabilities. For example, in February 2022, SHRM, a US-based HR professionals association, conducted a survey of 1,688 HR professionals regarding the application of automation and AI in HR. The findings revealed that 16% of corporations utilize automation or AI, and 85% of employers who use these tools report an increase in time-saving and efficiency. Furthermore, 1 in 5 organizations intends to introduce or extend the use of these tools for performance management in the next five years, while 1 in 4 organizations plans to incorporate automation or AI into their recruitment and hiring processes within the same timeframe. Consequently, the growing necessity for automation in HR activities is leading to an expansion of artificial intelligence within the HR market.
What Is The Segmentation Of The Global Artificial Intelligence in HR Market?
The artificial intelligence in hr market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By Technology: Virtual Assistants, Metaverse, AI Chatbot, People Analytics, Machine Learning, Computer Vision, Natural Language Processing, Other Technologies
3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Workforce Management, Talent Management, Payroll Management, Performance Management, Recruitment, Hiring, Other Applications
5) By Industry: Academic, Banking, Financial Services And Insurance (BFSI), Government, Healthcare, Information Technology(IT) And Telecom, Manufacturing, Retail, Other Industries
Subsegments:
1) By Hardware: AI-Powered Recruitment Tools, Biometric Devices For Attendance Tracking, Wearable Technology For Employee Wellness
2) By Software: Applicant Tracking Systems (ATS), Performance Management Software, Employee Engagement Platforms, Learning Management Systems (LMS), Chatbots For HR Support
3) By Services: Consulting Services For AI Implementation, Training And Support Services, Data Analytics And Reporting Services, Managed Services For HR Operations
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What Emerging Trends Are Shaping The Artificial Intelligence in HR Market Landscape?
Advances in technology are emerging as a prevalent trend in the AI in HR market. Most prominent players in this sector are embracing these innovations to maintain their stand in the market. For example, in March 2023, Beamery Technologies Limited, a UK-based company specializing in talent engagement and recruitment software, unveiled a first-of-its-kind generative AI for HR technology. This can be utilized to formulate job descriptions as well as suggest career paths for employees. This innovative technology enables the corporation to overhauling and significantly simplify all clientele experiences provided by Beamery. The platform's base rests upon Beamery's talent graph, an elaborate system that tracks a whopping 17 Billion Data Points About Individuals, Talents, Job Opportunities and Bias-Audited AI Models along with generative AI.
Who Are the Key Players in the Artificial Intelligence in HR Market?
Major companies operating in the artificial intelligence in hr market include:
• IBM Corporation
• Oracle Corporation
• SAP SE
• Automatic Data Processing Inc.
• Workday Inc.
• Infor
• Ceridian HCM Inc.
• Cegid Group
• Cornerstone OnDemand Inc.
• JobTeaser
• Phenom People Inc.
• Eightfold AI
• Simpplr
• Beamery Inc.
• HireVue Inc.
• Jobvite Inc.
• EdCast Inc.
• Harver B.V.
• SmartRecruiters
• Gloat
• Aisera
• PageUp People Pty
• JobAdder Operations Pty Ltd.
• Entelo Inc.
• Textio
• Cezanne HR Limited
• Brazen Technologies Inc.
• Pymetrics Inc.
What are the Regional Insights into the Artificial Intelligence in HR Market?
North America was the largest region in the artificial intelligence in HR market in 2024. The regions covered in the artificial intelligence in hr market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
