PUBLISHER: The Business Research Company | PRODUCT CODE: 1872776
PUBLISHER: The Business Research Company | PRODUCT CODE: 1872776
Artificial intelligence (AI) powered employee recognition analytics is a technology driven approach that leverages AI to assess and understand employee performance and contributions. It examines workplace data to identify patterns and insights that highlight achievements and behaviors deserving recognition.
The main components of artificial intelligence (AI) powered employee recognition analytics are software and services. Software consists of AI enabled platforms and applications that provide employee recognition analytics. Deployment options include on premises and cloud, serving small and medium enterprises as well as large organizations. Applications cover performance management, employee recognition, communication and collaboration, surveys and feedback, learning and development, and more. Key end users include banking, financial services and insurance (BFSI), healthcare, information technology and telecommunications, retail, manufacturing, education, and others.
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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The artificial intelligence (AI)-powered employee recognition analytics market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence (AI)-powered employee recognition analytics market statistics, including artificial intelligence (AI)-powered employee recognition analytics industry global market size, regional shares, competitors with a artificial intelligence (AI)-powered employee recognition analytics market share, detailed artificial intelligence (AI)-powered employee recognition analytics market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI)-powered employee recognition analytics industry. This artificial intelligence (AI)-powered employee recognition analytics 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 (AI)-powered employee recognition analytics market size has grown exponentially in recent years. It will grow from $1.30 billion in 2024 to $1.60 billion in 2025 at a compound annual growth rate (CAGR) of 23.0%. Growth in the historic period was driven by increasing attention to enhancing employee engagement, rising awareness of employee well being, stronger focus on employee satisfaction and happiness, growing demand for personalized recognition programs, and higher expectations for frequent and meaningful recognition.
The artificial intelligence (AI)-powered employee recognition analytics market size is expected to see exponential growth in the next few years. It will grow to $3.62 billion in 2029 at a compound annual growth rate (CAGR) of 22.6%. Growth in the forecast period is expected to result from the need to reduce employee burnout through positive reinforcement, wider adoption of remote and hybrid work models, increased importance of recognition in distributed teams, emphasis on continuous feedback instead of annual reviews, and growing interest in peer to peer recognition programs. Key trends projected for the forecast period include integration of AI into HR systems, adoption of real time analytics, development of machine learning algorithms, mobile accessibility, and expansion of data visualization tools.
The rising adoption of remote and hybrid work models is expected to support the growth of the market for AI-powered employee recognition analytics. These work arrangements allow employees to operate entirely from remote locations or divide their time between remote and on-site settings. The shift toward flexible work is being driven by a growing desire for better work-life balance, as it allows individuals to manage both personal and professional responsibilities more effectively while reducing time spent commuting. AI-powered employee recognition analytics supports these models by enabling timely, data-driven recognition of employee achievements regardless of physical location, helping organizations maintain engagement, motivation, and connection across distributed teams. For example, in February 2022, the UK Office for National Statistics reported that 42% of employees were working from home, up from 30% in April 2021. This growing emphasis on flexible work arrangements is contributing to the expansion of the AI-powered employee recognition analytics market.
Companies in the artificial intelligence (AI)-powered employee recognition analytics market are focusing on AI innovations to improve personalization, real-time feedback, and insights into employee engagement and performance. Machine learning enables systems to analyze behavior, recognize achievements, and deliver tailored feedback, resulting in more meaningful employee recognition. For example, in May 2024, Qualtrics introduced advanced AI-driven features in its XM for Employee Experience suite. These features use machine learning to detect signs of potential attrition, transform employee feedback into actionable insights, and identify behavioral trends throughout the employee journey. The platform, powered by Qualtrics AI and a comprehensive sentiment database, helps organizations enhance engagement, improve retention, and boost productivity. By automating data analysis and offering predictive insights, it allows managers to make faster, more informed decisions that support team success and employee satisfaction.
In May 2025, Nectar, a company based in the United States that specializes in AI-powered employee recognition analytics, partnered with the Society for Human Resource Management to enhance employee recognition and rewards. The partnership provides SHRM members with exclusive pricing and access to Nectar's platform, which integrates with HR information systems and communication tools to promote peer recognition aligned with organizational values. SHRM's adoption of the platform further establishes its credibility as a valuable resource for improving employee engagement and retention. The Society for Human Resource Management is a professional organization representing HR professionals in the United States.
Major players in the artificial intelligence (AI)-powered employee recognition analytics market are Microsoft Corporation, IBM Corporation, Oracle Corporation, SAP SE, ADP Inc., Workday Inc., Ultimate Kronos Group Inc., Qualtrics LLC, O.C. Tanner, Cornerstone OnDemand Inc., Culture Amp Pty. Ltd., Achievers Solutions Inc., Reward Gateway Ltd., Ceridian HCM Inc., Lattice, Reflektive Inc., Motivosity Inc., Quantum Workplace Companies, TinyPulse, Peakon, Bonusly, Leena AI, and Kazoo Ltd.
North America was the largest region in the artificial intelligence (AI)-powered employee recognition analytics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI)-powered employee recognition analytics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the artificial intelligence (AI)-powered employee recognition analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence (AI)-powered employee recognition analytics market includes revenues earned by entities by providing services such as performance milestone identification, behavioral pattern recognition, predictive recognition analytics, and real-time recognition automation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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 (AI)-Powered Employee Recognition Analytics 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 (ai)-powered employee recognition analytics 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 (ai)-powered employee recognition analytics ? 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 (ai)-powered employee recognition analytics 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.