Press release
AI in Human Resources Market Size Outlook with Competitive Analysis 2026 to 2035
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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Artificial Intelligence (AI) in human resources refers to the application of AI technologies to enhance and automate various HR functions. These include resume screening, interview scheduling, and preliminary candidate assessments. The growing demand for automation, digitalization, and agility in HR operations is driving the expansion of the AI in Human Resources market.
AI enables the automation of critical processes such as recruitment, talent acquisition, performance evaluation, employee engagement, and workforce planning, all supported by real-time data analytics. By leveraging AI-driven insights, HR professionals can make more informed and data-backed decisions regarding employee performance and development. However, factors such as the high implementation cost of AI systems and skepticism surrounding the accuracy and fairness of AI-based assessments continue to challenge market growth.
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
Market Dynamics:
Drivers-
The rising demand for automation and efficiency is propelling the adoption of Artificial Intelligence (AI) in human resources. Organizations are increasingly leveraging AI to automate repetitive administrative tasks such as resume screening and interview scheduling, allowing HR professionals to focus on more strategic functions. AI enhances recruitment by providing data-driven insights and minimizing biases in the hiring process. Furthermore, AI tools promote employee engagement and retention by offering personalized learning and career development opportunities.
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Challenges:
Despite its potential, several challenges hinder the growth of AI in human resources. High implementation costs, concerns regarding data privacy and security, and the need for skilled professionals to manage AI systems remain key obstacles. Since AI solutions handle sensitive employee information, ensuring compliance with data protection regulations and safeguarding against cyber threats are critical issues. The integration of AI into existing HR systems also demands substantial investment and effective change management.
Regional Trends:
North America is expected to dominate the AI in Human Resources Market, driven by strong technological infrastructure, substantial investments in AI solutions, and a focus on enhancing workforce productivity through data-driven HR practices. The region's emphasis on innovation and automation is fostering rapid adoption across industries. Europe also holds a significant share of the market, supported by stringent regulatory standards, growing awareness of ethical AI usage, and an increasing focus on improving workforce efficiency and decision-making through advanced AI technologies.
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.
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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
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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 a 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.https://www.insightaceanalytic.com/images_data/148861653.
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