What Is The Current and Historic Market Size Analysis Of The Generative Artificial Intelligence AI In Human Resources HR Market?
The generative artificial intelligence ai in human resources hr market has seen considerable growth due to a variety of factors.
• In recent years, the market size of generative AI in the HR sector has seen rapid expansion. Projected growth sees it escalating from $0.63 $ billion in 2024 to $0.75 $ billion in 2025, yielding a compound annual growth rate (CAGR) of 18.3%.The impressive growth during the historic period can be tied to an increase in data-driven decision making, a demand for enhanced personalised employee experiences, advancements in recruitment processes, the introduction of sophisticated analytics tools, an intensified focus on diversity and inclusion efforts, as well as the transitioning towards remote and hybrid work schemes.
What Are The Predictions for The Generative Artificial Intelligence AI In Human Resources HR Market in the Coming Years?
The generative artificial intelligence ai in human resources hr market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market for generative artificial intelligence (AI) in human resources (HR) is projected to experience a fast-paced expansion, reaching $1.45 billion in 2029 with a compound annual growth rate (CAGR) of 17.9%.
The prominence of AI technology adoption, intensifying challenges in handling workforce, the need for superior employee engagement strategies, requirement for immediate performance response frameworks, emphasis on regular learning and development, enhancement of AI proficiencies in predictive analytics, and the fusion of AI with current HR systems for smooth operations all contribute to the growth during the forecast period. The forecast period will also see trends such as a surge in the adoption of AI-enabled chatbots and virtual assistants, escalating utilization of machine learning algorithms for talent administration and workforce preparation, growing demand for personalized employee experiences via AI-created content, expanding use of AI in recruitment and hiring procedures, amalgamation of AI with current HR systems to upturn efficiency, increasing concentration on AI-powered performance management and employee advancement, forecasted growth of the cloud-based deployment of generative AI solutions in HR.
Which Drivers Are Accelerating Growth In The Generative Artificial Intelligence AI In Human Resources HR Market?
The escalating requirement for automation is predicted to fuel the expansion of generative artificial intelligence (AI) in the human resources (HR) market in the future. Automation, a process driven by technology that performs tasks with minimal human intervention, boosts efficiency and productivity by replacing manual labor with automated systems. The mounting necessity for automation is primarily due to the pursuit of improved efficiency, cost-effectiveness, and precision. Generative AI plays a crucial role in meeting this surge in automation need by automating routine HR tasks such as candidate screening, job description writing, and performance assessments. This technology enhances the efficacy of HR, mitigates manual workloads, and enables HR experts to concentrate on more strategic tasks. As an illustration, a research conducted by the Department for Digital, Culture, Media & Sport (DCMS), a governmental department based in the UK, and Capital Economics, a UK-based information services firm, in January 2022 reported a considerable increase in the use of AI technology from 15.1% in 2020 to 22.7% in 2025, with an additional 267,000 businesses incorporating AI into their operations. Furthermore, it is projected that by 2040, nearly 34.8% of companies will have adopted AI, with approximately 1.3 million firms harnessing this technology. Hence, the escalating requirement for automation contributes to the growth of generative artificial intelligence (AI) in the human resources (HR) market.
What Are The Core Segments Of The Global Generative Artificial Intelligence AI In Human Resources HR Market?
The generative artificial intelligence (AI) in human resources (hr) market covered in this report is segmented –
1) By Technology: Machine Learning, Natural Language Processing, Deep Learning, Computer Vision, Robotic Process Automation
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Application: Recruiting And Hiring, Onboarding, Performance Management, Improved Efficiency, Other Applications
Subsegments:
1) By Machine Learning: Predictive Analytics For Employee Retention, Talent Acquisition And Recruitment Optimization, Performance Evaluation Models, Employee Engagement Analysis, Skills Gap Analysis
2) By Natural Language Processing (NLP): Automated Resume Screening And Parsing, Chatbots For Candidate Interaction, Sentiment Analysis Of Employee Feedback, Personalized Communication And Engagement Tools, Job Description Optimization
3) By Deep Learning: Candidate Skill Matching And Assessment, Video Interview Analysis, Employee Training Personalization, Advanced Predictive Models For Workforce Planning, Learning Experience Platforms (LEPs)
4) By Computer Vision: Facial Recognition For Attendance Tracking, Analysis Of Employee Behavior And Engagement, Virtual Reality (VR) For Training Simulations, Safety Monitoring In Workplace Environments, Automated Visual Inspections For Facilities Management
5) By Robotic Process Automation (RPA): Automating Repetitive HR Tasks (e.g., Onboarding), Data Entry And Record Management Automation, Payroll Processing And Compliance Automation, Employee Self-Service Portals, HR Reporting And Analytics Automation.
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What Emerging Trends Are Influencing The Growth Of The Generative Artificial Intelligence AI In Human Resources HR Market?
Leading businesses in the generative artificial intelligence (AI) for human resources (HR) sector are pioneering innovative technologies such as proprietary AI in an effort to amplify recruitment strategies, refine the sourcing of candidates, increase employee engagement, mechanize regular HR jobs, and facilitate informed decision-making as well as apt workforce management with the help of intelligent data analysis. The term "proprietary artificial intelligence (AI) technology" corresponds to the distinctive AI systems and algorithms solely created and possessed by a specific corporation or individual, safeguarded by intellectual property rights including patents, copyrights or trade secrets. For instance, Beamery, a talent engagement and recruitment software enterprise based in the UK, unveiled TalentGPT in March 2023. Claimed as the first-ever generative AI for HR technology worldwide, TalentGPT is engineered to individualize HR operations extensively by exploiting Beamery’s unique AI along with sophisticated large language models like OpenAI’s GPT-4. This allows real-time adjustment of content, job outlines, email layouts, and career advice to cater to the precise and changing needs of businesses and employees. The primary objective of TalentGPT is to revolutionize HR techniques by providing highly tailored and adaptable solutions.
Who Are the Key Players In The Generative Artificial Intelligence AI In Human Resources HR Market?
Major companies operating in the generative artificial intelligence (AI) in human resources (HR) market are:
• International Business Machines Corp.
• Oracle Corporation
• SAP SE
• Automatic Data Processing Inc
• Workday Inc.
• Cegid Group S.A.
• Cornerstone OnDemand Inc
• Phenom People Inc
• Jobvite Inc
• Harver B.V.
• Eightfold AI Inc.
• Beamery Inc.
• Paradox Inc.
• Workable Technology Limited
• ClearCompany Inc.
• Aisera Inc.
• Gloat Inc
• JobAdder Operations Pty Ltd
• SeekOut
• TEXTIO INC.
• TalentGuard Inc.
• Cezanne HR Limited
• Pymetrics Inc
What Are The Regional Insights Into The Generative Artificial Intelligence AI In Human Resources HR Market?
North America was the largest region in the generative artificial intelligence (AI) in human resources (HR) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in human resources (HR) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
