AI in Human Resources Market Set to Reach USD 25.0 Billion by 2031 Driven by 24.8% CAGR Growth

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global AI in Human Resources Market - (By Type (Recruitment and Selection, Employee Onboarding, Performance Management, Talent Management, Workforce Planning and Analytics, Employee Engagement, Learning and Development), By Application (Resume Screening, Candidate Matching, Predictive Analytics for Employee Success, Skill Gap Analysis, Personalized Learning Paths, Employee Feedback and Sentiment Analysis, Succession Planning, Compensation and Benefits Optimization), By Deployment Mode (Cloud-based, On-premises), By Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."

According to the latest research by InsightAce Analytic, the Global AI in Human Resources Market is valued at US$ 4.3 Bn in 2023, and it is expected to reach US$ 25.0 Bn by 2031, with a CAGR of 24.8% during the forecast period of 2024-2031.

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The adoption of Artificial Intelligence (AI) within Human Resources (HR) is reshaping traditional HR operations by automating and enhancing a wide spectrum of functions. AI is increasingly being applied across critical HR activities, including resume screening, interview coordination, initial candidate evaluations, and talent acquisition. This expansion is driven by the growing demand for agile, data-driven, and automated HR processes. By leveraging AI, organizations can efficiently manage recruitment, employee performance assessments, engagement programs, workforce planning, and overall performance management through real-time data analytics.

Through the analysis of employee-related data, AI empowers HR professionals to make more informed and strategic decisions, thereby improving operational efficiency and the accuracy of decision-making. However, the implementation of AI in HR faces challenges, including significant upfront investment requirements and concerns regarding the fairness, transparency, and reliability of AI-driven evaluation tools. Despite these challenges, the AI in HR market is expected to experience substantial growth, driven by AI's ability to manage distributed workforces effectively, enhance collaboration, and support productivity in hybrid work environments.

List of Prominent Players in the AI in Human Resources Market:
• IBM Corporation
• Oracle Corporation
• SAP SE
• ADP, LLC
• Workday, Inc.
• Ultimate Software Group, Inc.
• Cornerstone OnDemand, Inc.
• Kronos Incorporated
• Ceridian HCM, Inc.
• Talentsoft
• PeopleStrong HR Services Pvt. Ltd.
• Phenom People, Inc.
• Visier, Inc.
• Entelo
• HireVue Inc.
• Textio
• Brazen Technologies
• AllyO
• Pymetrics
• Eightfold AI
• ClearCompany
• Jobvite, Inc.
• Greenhouse Software, Inc.
• Talview
• Avature

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Market Dynamics
Drivers:
The growth of Artificial Intelligence (AI) in Human Resources (HR) is primarily driven by organizations' efforts to automate routine administrative functions, such as resume screening and interview scheduling, thereby improving operational efficiency and reducing administrative costs. This automation allows HR professionals to focus on strategic, high-value initiatives. AI also enhances recruitment outcomes by providing data-driven insights that help minimize bias in hiring decisions.

Furthermore, AI supports employee engagement and retention through personalized learning and development programs, while its ability to analyze extensive workforce data enables precise workforce planning and performance management. Ongoing technological advancements in AI, coupled with supportive regulatory frameworks and increasing cost-effectiveness, continue to reinforce market expansion.

Challenges:
Despite its advantages, the adoption of AI in HR faces significant challenges. High initial investment requirements, concerns over data privacy, and the need for specialized technical expertise remain critical barriers. Given the sensitive nature of employee information, strict compliance with data protection regulations is essential. Cybersecurity risks further complicate implementation, and the financial and organizational resources required for effective integration can be particularly restrictive for small and medium-sized enterprises (SMEs). Additional concerns include the reliability of AI-driven decisions, the risk of over-reliance on automation, regulatory uncertainties, and the need for robust digital infrastructure to support widespread deployment.

Regional Trends:
North America is expected to maintain a leading position in the AI-enabled HR market, driven by a mature technological ecosystem, significant investment in HR technology, and a strong focus on leveraging data-driven strategies to optimize workforce efficiency. Europe also demonstrates considerable market growth, supported by stringent regulatory standards, a focus on ethical AI implementation, and the increasing adoption of AI solutions to enhance productivity and strategic decision-making in human capital management.

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Recent Developments:
• In July 2024, HireVue, the world's first and biggest company in Human Potential Intelligence, announced the results of a new AI survey. The survey asked 3,100 workers and 1,000 HR professionals in the U.S. and U.K. to share their thoughts on how AI is used in hiring.

Segmentation of AI in the Human Resources Market-
By Type-
• Recruitment and Selection
• Employee Onboarding
• Performance Management
• Talent Management
• Workforce Planning and Analytics
• Employee Engagement
• Learning and Development
By Application-
• Resume Screening
• Candidate Matching
• Predictive Analytics for Employee Success
• Skill Gap Analysis
• Personalized Learning Paths
• Employee Feedback and Sentiment Analysis
• Succession Planning
• Compensation and Benefits Optimization
By Deployment Mode-
• Cloud-based
• On-premises
By Organization Size-
• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of the Middle East and Africa

Read Overview Report- https://www.insightaceanalytic.com/report/ai-in-human-resources-market/2750

About Us:
InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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This release was published on openPR.