July 20, 2024

Artificial Intelligence in HR Market Size, Growth, Report By 2033

The global artificial intelligence in HR market size is expected to increase USD 27.30 billion by 2033 from USD 6.03 billion in 2023 with a CAGR of 16.30% between 2024 and 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.

Artificial Intelligence in HR Market Size 2024 to 2033

The Artificial Intelligence (AI) in HR market is rapidly transforming the human resources sector by leveraging AI technologies to enhance efficiency, decision-making, and employee experience. AI applications in HR encompass various functions such as recruitment, employee engagement, workforce planning, performance management, and HR analytics. These technologies aim to streamline HR processes, reduce bias in decision-making, and optimize workforce management strategies.

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Growth Factors

Several factors are driving the growth of AI in the HR market. Automation of repetitive tasks such as resume screening and scheduling interviews improves HR efficiency and allows HR professionals to focus on strategic initiatives. AI-powered analytics enable data-driven decision-making in areas like talent acquisition and retention, leading to better workforce planning and reduced turnover rates. Additionally, advancements in natural language processing (NLP) and machine learning algorithms enhance the ability of AI systems to understand and respond to human interactions, thereby improving employee engagement and satisfaction.

Region Insights

The adoption of AI in HR varies regionally, with North America leading the market due to early adoption of technology, presence of key AI solution providers, and a robust regulatory framework supporting innovation. Europe follows closely, driven by increasing investments in AI technologies across industries. The Asia-Pacific region is witnessing rapid growth, propelled by digital transformation initiatives in emerging economies and the growing demand for AI-powered HR solutions to manage large and diverse workforces.

Artificial Intelligence in HR Market Scope

Report CoverageDetails
Market Size by 2033USD 27.30 Billion
Market Size in 2023USD 6.03 Billion
Market Size in 2024USD 7.01 Billion
Market Growth Rate from 2024 to 2033CAGR of 16.30%
Largest MarketNorth America
Base Year2023
Forecast Period2024 to 2033
Segments CoveredOffering,Technology, Enterprise Size, Application, Industry, and Regions
Regions CoveredNorth 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 enhanced HR efficiency, improved decision-making through predictive analytics, and the demand for personalized employee experiences. AI technologies enable HR departments to analyze vast amounts of data to identify trends, predict future workforce needs, and tailor employee development programs. Moreover, the integration of AI with existing HR systems and platforms facilitates seamless implementation and scalability of AI-driven solutions.

Opportunities

The AI in HR market presents significant opportunities for innovation and growth. Advancements in AI technologies, such as AI-powered chatbots for employee queries and sentiment analysis tools for employee feedback, offer new ways to enhance employee engagement and productivity. Additionally, the rise of remote work and flexible work arrangements due to global events has spurred demand for AI solutions that support virtual collaboration, performance monitoring, and employee well-being initiatives.

Challenges

Despite the benefits, the AI in HR market faces challenges such as data privacy concerns, ethical implications of AI-driven decision-making, and the need for upskilling HR professionals to effectively leverage AI technologies. Integrating AI with existing HR systems and ensuring compatibility with diverse organizational cultures and structures can also pose implementation challenges. Moreover, regulatory complexities related to AI usage in HR, especially regarding bias mitigation and fairness in algorithms, require careful consideration to maintain trust and compliance.

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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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