The global artificial intelligence in HR market size was valued at USD 6.03 billion in 2023 and is expected to be worth around USD 27.30 billion by 2033, expanding at a CAGR of 16.30% from 2024 to 2033.
Key Points
- The North America artificial intelligence in HR market size accounted for USD 2.35 billion in 2023 and is predicted to cross around USD 10.78 billion by 2033, at a CAGR of 16.45% from 2024 to 2033.
- North America dominated artificial intelligence in HR market in 2023.
- Asia- Pacific is the fastest growing in artificial intelligence in HR market during the forecast period.
- By type, the services segment held the significant share of the market in 2023.
- By technology, the machine learning segment led the market in 2023.
- By technology, the virtual assistance segment is observed to grow at a notable rate in the artificial intelligence in HR market during the forecast period.
- By enterprise size, the large enterprises segment dominated artificial intelligence in HR market in 2023.
- By application, the recruitment and hiring segment dominated artificial intelligence in HR market in 2023.
- By industry, the IT and telecom segment dominated artificial intelligence in HR market in 2023.
- By industry, the BFSI is observed fastest growing segment in artificial intelligence in HR market during forecast period.
The Artificial Intelligence (AI) in Human Resources (HR) Market has witnessed remarkable growth as organizations increasingly adopt AI technologies to streamline and enhance HR functions. AI in HR encompasses various applications, including talent acquisition, employee engagement, performance management, and learning and development. By leveraging AI, HR departments can automate repetitive tasks, gain deeper insights into employee data, and make more informed decisions.
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Growth Factors
Several factors drive the growth of AI in the HR market. The increasing volume of HR data, which is difficult to manage using traditional methods, has necessitated the adoption of AI technologies. The growing demand for enhanced employee experiences and the need for more efficient HR processes also contribute to market growth. Additionally, the widespread availability of AI solutions tailored to HR needs has made it easier for organizations to implement these technologies.
Regional Insights
North America holds a dominant position in the AI in HR market due to the early adoption of advanced technologies and the presence of major AI solution providers. Europe follows closely, with countries like the UK, Germany, and France investing heavily in AI-driven HR solutions. The Asia-Pacific region is expected to exhibit significant growth, driven by increasing digital transformation initiatives and the rising adoption of AI technologies in countries like China, India, and Japan.
Artificial Intelligence in HR Market Scope
| Report Coverage | Details |
| Market Size by 2033 | USD 27.30 Billion |
| Market Size in 2023 | USD 6.03 Billion |
| Market Size in 2024 | USD 7.01 Billion |
| Market Growth Rate from 2024 to 2033 | CAGR of 16.30% |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Offering,Technology, Enterprise Size, Application, Industry, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Artificial Intelligence in HR Market Dynamics
Drivers
Key drivers of the AI in HR market include the need for efficient talent acquisition processes, enhanced employee engagement, and improved decision-making capabilities. AI technologies can automate time-consuming tasks such as resume screening, interview scheduling, and onboarding, allowing HR professionals to focus on strategic initiatives. Furthermore, AI-driven analytics provide valuable insights into employee performance, engagement levels, and potential areas for improvement.
Opportunities
The AI in HR market presents numerous opportunities for growth and innovation. The development of AI-powered tools for personalized learning and development programs can significantly enhance employee skills and career growth. Additionally, AI-driven solutions for workforce planning and predictive analytics can help organizations anticipate future talent needs and address potential skill gaps. Strategic partnerships between AI solution providers and HR technology companies can further drive market expansion.
Challenges
Despite the promising growth prospects, the AI in HR market faces several challenges. Data privacy and security concerns are paramount, as HR departments handle sensitive employee information. Ensuring the ethical use of AI and mitigating potential biases in AI algorithms are also critical challenges. Moreover, the integration of AI technologies with existing HR systems can be complex and require significant investment in terms of time and resources.
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Artificial Intelligence in HR Market Companies
- IBM Corporation
- Oracle Corporation
- SAP SE
- Automatic Data Processing Inc
- Cegid Group
- Cornerstone OnDemand Inc
- Job Teaser
- Phenom People Inc
- Eightfold AI
- Simpplr
- Beamery Inc
- HireVue Inc
- Jobvite Inc
- EdCast Inc
- Harver B.V.
- Smart Recruiters
- Gloat
- Textio
- Cezanne HR Limited
- Brazen Technologies Inc.
- Pymetrics Inc
- Aisera
- PageUp People Pty
- JobAdder Operations Pty Ltd
- Entelo Inc
Recent Developments
In May 2023, With the recent announcement of SAP and Microsoft’s extended relationship, the dream of enterprise-ready generative AI that can improve worker productivity and development is becoming closer to reality. By combining SAP SuccessFactors solutions with Copilot in Viva Learning and Microsoft 365 Copilot, enterprises will be able to better retain, upskill, and hire workers to close skills shortages.
Segments Covered in the Report
By Offering
- Hardware
- Software
- Services
By Technology
- Virtual Assistants
- Metaverse
- AI Chatbot
- People Analytics
- Machine Learning
- Computer Vision
- Natural Language Processing
By Enterprise Size
- Small and Medium Enterprises
- Large Enterprises
By Application
- Workforce Management
- Talent Management
- Payroll Management
- Performance Management
- Recruitment and Hiring
By Industry
- Academic
- Banking Financial Services and Insurance (BFSI)
- Government
- Healthcare
- Information Technology (IT) and Telecom
- Manufacturing
- Retail
By Geography
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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