PUBLISHER: The Business Research Company | PRODUCT CODE: 1843658
PUBLISHER: The Business Research Company | PRODUCT CODE: 1843658
Artificial intelligence (AI) in HR involves the application of machine learning algorithms and advanced technologies to automate and enhance human resource processes and tasks. It encompasses utilizing AI capabilities to analyze data, make predictions, and aid in decision-making for HR functions.
The primary components of artificial intelligence in HR consist of hardware, software, and services. Hardware plays a pivotal role in AI applications within HR, providing essential support for data storage, computing power, AI model training, real-time analytics, IoT devices, edge computing, and security infrastructure. Various technologies, including virtual assistants, the metaverse, AI chatbots, people analytics, machine learning, computer vision, natural language processing, among others, are employed by enterprises of different sizes, ranging from small and medium enterprises to large enterprises. These technologies find application in diverse areas such as workforce management, talent management, payroll management, performance management, recruitment, hiring, and others across industries such as academics, banking, financial services, and insurance (BFSI), government, healthcare, information technology (IT) and telecom, manufacturing, retail, and more.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The artificial intelligence in HR market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence in HR market statistics, including artificial intelligence in HR industry global market size, regional shares, competitors with artificial intelligence in HR market share, detailed artificial intelligence in HR market segments, market trends, and opportunities, and any further data you may need to thrive in the artificial intelligence in HR industry. This artificial intelligence in HR market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The artificial intelligence in hr market size has grown rapidly in recent years. It will grow from $6.05 billion in 2024 to $6.99 billion in 2025 at a compound annual growth rate (CAGR) of 15.6%. The growth in the historic period can be attributed to rise in talent acquisition and management costs, data explosion and analytics capabilities, increased demand for personalized career development and employee experience, compliance and risk management challenges, competitive pressure and early adopter success.
The artificial intelligence in hr market size is expected to see rapid growth in the next few years. It will grow to $14.03 billion in 2029 at a compound annual growth rate (CAGR) of 19.0%. The growth in the forecast period can be attributed to increased focus on employee wellbeing and engagement, hyper-personalization and skill development, enhanced recruitment and retention strategies, ethical considerations and responsible ai implementation, talent analytics and future of work preparedness. Major trends in the forecast period include innovative solutions, conversational ai chatbots, predictive performance analysis, data anonymization and encryption, mentorship and career development, strategic collaborations.
The forecast of 19.0% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. HR tech innovation may face setbacks as tariffs increase the cost of importing AI-driven recruitment platforms and sentiment analysis tools from global developers. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The anticipated growth in the artificial intelligence in the HR market is driven by the increasing demand for automation in HR operations. Automation in HR operations involves the utilization of technology, particularly software and systems, to streamline and automate various administrative and repetitive tasks within the human resources function. Artificial intelligence (AI) is a potent tool for automating HR operations, enhancing processes such as candidate screening and recruitment, data entry, workflow, and data processing. A survey conducted by the Society for Human Resource Management (SHRM) in February 2022, involving 1,688 HR professionals, revealed that 16% of corporations use automation or AI in HR. Of those using these tools, 85% reported time savings and increased efficiency. Additionally, 1 in 5 organizations plans to start or expand the use of AI for performance management, and 1 in 4 aims to integrate AI into recruitment and hiring within the next five years. Hence, the growing demand for HR automation propels the growth of artificial intelligence in the HR market.
The increasing volume of job recruitment is expected to drive the growth of artificial intelligence in the HR market. Job recruitment, or the active process of seeking and attracting qualified individuals to fill job positions, is a key aspect of organizational growth. Artificial intelligence (AI) significantly contributes to job recruitment by enhancing efficiency, objectivity, and overall candidate experience. According to data from The Bureau of Labor Statistics in May 2023, the number of hires in 2022 reached 77.2 million, marking an increase from 76.1 million in 2021 and 72.6 million in 2020. Therefore, the rising trend in job recruitment fuels the growth of artificial intelligence in the HR market.
Technological innovations represent a prominent trend in the artificial intelligence in the HR market, with major companies adopting new technologies to maintain their market positions. For instance, in March 2023, Beamery Technologies Limited, a UK-based talent engagement and recruitment software company, introduced the world's first generative AI for HR technology. This innovative technology is capable of developing job descriptions and providing career recommendations to employees, simplifying and reinventing customer experiences on the Beamery platform. The foundation of Beamery's talent graph, tracking over 17 billion data points about people, talents, jobs, and bias-audited AI models, serves as a testament to the platform's innovative capabilities.
Strategic collaborations are a key focus for major companies in the artificial intelligence in the HR market to sustain their positions. Strategic collaborations involve cooperative agreements or partnerships between entities to achieve mutual goals. In October 2023, Ernst & Young Global Limited collaborated with International Business Machines Corporation to launch EY.ai Workforce, an innovative HR solution that integrates artificial intelligence into key HR business processes. This collaboration enables automation of time-consuming HR tasks, such as onboarding, payroll processing, and benefits management, freeing up HR professionals for more strategic work.
In April 2024, Workday Inc., a US-based system software company, acquired HiredScore, Inc. for an undisclosed amount. This acquisition is intended to integrate HiredScore's advanced artificial intelligence (AI) and machine learning technology into Workday's Human Capital Management (HCM) system. HiredScore, Inc. is a US-based software development company.
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.
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
The countries covered in the artificial intelligence in hr market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The artificial intelligence in the HR market consists of revenues earned by entities by providing ethics and bias detection, and decision support. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in the HR market also includes sales of cloud computing infrastructure, storage systems, and networking equipment that are used to provide HR-related services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence in HR Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence in hr market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence in hr ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The artificial intelligence in hr market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.