In 2024, the top use for artificial intelligence (AI) at professional organizations in the United States was for recruiting, interviewing, and/or hiring. ** percent of HR professionals stated that this was the case at their place of work. * percent admitted that AI was used for laying off employees.

Artificial Intelligence in Human Resource (HR) Market Outlook

According to our latest research, the global Artificial Intelligence (AI) in Human Resource (HR) market size reached USD 5.8 billion in 2024, registering a strong momentum in adoption across industries. The market is experiencing a robust CAGR of 36.2% and is forecasted to reach USD 66.4 billion by 2033. This impressive growth is primarily driven by the increasing demand for automation in HR processes, the need for data-driven insights in talent management, and the growing emphasis on employee engagement and retention strategies.

One of the principal growth factors propelling the AI in HR market is the rapid digital transformation across industries, which has led organizations to seek advanced solutions for streamlining complex HR operations. Companies are leveraging AI-powered applications to automate repetitive tasks such as resume screening, candidate shortlisting, and onboarding processes, significantly reducing administrative burdens and turnaround times. The integration of AI with existing HR management systems is enabling organizations to enhance accuracy, minimize human error, and improve the overall efficiency of HR departments. Furthermore, the ongoing shift toward remote and hybrid work models has accelerated the adoption of AI-based HR solutions, as businesses strive to maintain productivity and employee engagement in distributed work environments.

Another significant driver for the expansion of the Artificial Intelligence in Human Resource market is the increasing need for personalized employee experiences. AI technologies, such as natural language processing and machine learning, are being utilized to analyze employee feedback, predict attrition risks, and deliver tailored learning and development programs. This not only helps organizations retain top talent but also fosters a culture of continuous improvement and innovation. The ability of AI to provide actionable insights from vast datasets is transforming traditional HR practices, enabling data-driven decision-making and strategic workforce planning. Additionally, the rising focus on diversity, equity, and inclusion (DEI) initiatives is pushing enterprises to adopt AI tools that minimize bias in recruitment and performance evaluations.

The proliferation of cloud-based HR solutions is another critical factor influencing market growth. Cloud deployment offers scalability, flexibility, and cost-effectiveness, making it an attractive option for organizations of all sizes. With the increasing availability of AI-powered HR platforms on the cloud, even small and medium enterprises (SMEs) are able to access sophisticated tools that were previously only affordable for large corporations. This democratization of technology is leveling the playing field in talent acquisition and workforce management. Moreover, the integration of AI with cloud-based systems is facilitating real-time analytics, seamless collaboration, and enhanced security, further accelerating the adoption of AI in HR functions.

Regionally, North America continues to dominate the AI in HR market, accounting for the largest share due to the presence of major technology providers, high digital literacy, and early adoption of advanced HR technologies. However, Asia Pacific is emerging as the fastest-growing region, fueled by rapid economic development, increasing investments in AI research, and a burgeoning tech-savvy workforce. Europe is also witnessing significant growth, driven by stringent labor regulations and a strong focus on employee well-being. Latin America and the Middle East & Africa are gradually catching up, as organizations in these regions recognize the potential of AI to address unique workforce challenges and enhance competitiveness.

Component Analysis

The component segment of the Artificial Intelligence in Human Resource market is bifurcated into software and services, each playing a pivotal role in the ecosystem

In 2024, *********** organizations in the United States were most likely to use artificial intelligence (AI) in their HR department. Almost ** percent of respondents stated that this was the case. Small organizations, with a size of * to ** employees, had ** percent of their HR departments using AI.

In 2024, the top way in which HR departments used artificial intelligence (AI) in recruiting, interviewing, and hiring in the United States was to generate job descriptions. ** percent of HR professionals said this was the case within their department. Bottom of the list was to analyze applicants' interview performance, where only ***** percent of respondents gave this as their answer.

In 2024, the top way in which HR departments used artificial intelligence (AI) in learning and development (L&D) was to *************************************************************************************. *********** of HR professionals said this was the case within their department. Bottom of the list was to provide immersive learning experiences (e.g. virtual reality or augmented reality), where only ** percent of respondents gave this as their answer.

In practice, process automation, machine learning, predictive analytics, generative AI, and AI-powered front-end tool chatbot are pioneer technologies of Artificial Intelligence (AI) used in recruitment, selection, and retention. However, concerns have been raised about its ability to support the process accurately without compromise/potential biases with manipulative datasets. This study aims to systematically review the existing empirical literature on the impact of Artificial Intelligence (AI) on recruitment, selection, and retention processes within Human Resource Management (HRM), specifically in the US banking sector. Through a systematic literature review, three research questions and hypotheses were formulated, and the study was guided by the PRISMA model, the study identified and analyzed empirical studies published between 2019 and 2024 that focused on AI-driven HR processes. The analysis revealed that AI is increasingly adopted in recruitment to automate candidate screening, improve efficiency, and reduce bias. However, the integration of AI into selection and retention processes is less advanced, with studies highlighting the need for human oversight to complement AI tools. The findings suggested that while AI enhances objectivity and efficiency in HRM, over-reliance on technology may overlook the nuanced judgments human recruiters provide. The study concludes with recommendations for further exploratory research and collaboration between banks and academic institutions to bridge existing knowledge gaps and optimize AI adoption in HR practices.

IntroductionThis study analyzes the existing academic literature to identify the effects of artificial intelligence (AI) on human resource (HR) activities, highlighting both opportunities and associated challenges, and on the roles of employees, line managers, and HR professionals, collectively referred to as the HR triad.MethodsWe employed the scoping review method to capture and synthesize relevant academic literature in the AI–human resource management (HRM) field, examining 27 years of research (43 peer-reviewed articles are included).ResultsBased on the results, we propose an integrative framework that outlines the five primary effects of AI on HR activities: task automation, optimized HR data use, augmentation of human capabilities, work context redesign, and transformation of the social and relational aspects of work. We also detail the opportunities and challenges associated with each of these effects and the changes in the roles of the HR triad.DiscussionThis research contributes to the ongoing debate on AI-augmented HRM by discussing the theoretical contributions and managerial implications of our findings, along with avenues for future research. By considering the most recent studies on the topic, this scoping review sheds light on the effects of AI on the roles of the HR triad, enabling these key stakeholders to better prepare for this technological change. The findings can inform future academic research, organizations using or considering the application of AI in HRM, and policymakers. This is particularly timely, given the growing adoption of AI in HRM activities.

As of a 2020 report, 54 percent of business and HR leaders surveyed worldwide claimed that they expect artificial intelligence (AI) will have an impact on the nature of jobs in their organization in the next three years, although the number of jobs will remain the same. Some 25 percent of respondents stated that they expect AI will create a net decrease in jobs in their organizations over the next three years.

The AI-powered Human Resources Tool market is experiencing significant growth, driven by the increasing adoption of artificial intelligence (AI) in various industries. The market is estimated to reach a value of USD XXX million by 2033, expanding at a CAGR of XX% from 2025 to 2033. The growth is attributed to the rising need for automation and efficiency in HR processes, as well as the growing demand for data-driven decision-making. Key market drivers include the increasing adoption of AI in applicant tracking, recruitment, and performance management systems. AI-powered tools can help HR professionals automate time-consuming tasks, such as resume screening and candidate matching, enabling them to focus on more strategic initiatives. Additionally, the growing importance of data analytics in HR decision-making is driving demand for AI-powered tools that can provide insights into employee performance, engagement, and workforce trends. The market is segmented by application (SMEs and large enterprises) and types (cloud-based and on-premises). Key players in the market include Applicant AI, Covey Scout, Hire Hoc, VanillaHR, Holly, HireDev, RecruitGenius.ai, AI-Recruiter, Turbohir, The Interview, HireAI, Managebett, Resume Screening AI, JD Generator, Hirex.ai, AI Cartel, InterviewIgniter, and Goodspace.ai. The AI-powered human resources tool market is experiencing a surge in growth, driven by the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These tools are designed to streamline and automate HR processes, such as recruitment, onboarding, performance management, and employee engagement. As a result, the market is projected to grow from $2 billion in 2023 to $8 billion by 2028, at a CAGR of 25%.

Salutary Data is a boutique, B2B contact and company data provider that's committed to delivering high quality data for sales intelligence, lead generation, marketing, recruiting / HR, identity resolution, and ML / AI. Our database currently consists of 148MM+ highly curated B2B Contacts ( US only), along with over 4MM+ companies, and is updated regularly to ensure we have the most up-to-date information.

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The global Human Resource (HR) Technology market size is valued at USD 25.16 billion in 2023 and is projected to reach USD 50.19 billion by 2030, growing at a CAGR of 9.2% during the forecast period. HR technology is software which is the crucial technological tools to assist employers in the processes of hiring, engagement, retention of employees, as well well as workforce management and payroll processes. Additionally, it aids in just coordinating high-HR events, eradicates expensive duplications and synchronizes information for decision-making. It might be that some of the existing products utilize artificial intelligence and automation. The human resource system is being supported by technological advancement like the automation of communicative service, talent search, performance management, and more. Such instruments become more relevant with the advancement of remote and flexible work and the constantly changing nature of global business. With the digital transformation driving new territory in the business world, human resource technology solutions help companies explore the changes, make their every day operations easier and sustainable, as well deal with any human resource limitations that come up. Recent developments include: October 2023: Workday expanded its partnership with ADP to provide global compliance, payroll, and HR experiences for joint customers. The partnership aimed to enable the customer to view data across their HCM environments, including tax, compliance, and payroll., September 2023: HiBob collaborated with Papaya Global, a payroll platform provider, to help multinational employers meet the need for compliant HR-integrated payroll solutions. Through the collaboration, HiBob integrated its HR data into Papaya’s platform, allowing employers to integrate PTO, HR, and compensation information with real-time data synchronization and optimize payroll processes., September 2023: The Access Group acquired Diversely, a Singapore-based inclusive recruitment solution company, offering a comprehensive suite, Access Volcanic, to its customers. The website allows organizations to track, measure, and improve diversity, providing recruitment solutions to bring new business, stay compliant, and attract a wider candidate group., August 2023: ADP acquired Honu HR, Inc. DBA Sora (Sora), a data integration and workflow automation tool platform company, to simplify complex HR processes through automation. This acquisition aimed to provide HR solutions by integrating Sora's easy-to-use platform with ADP's HCM solutions for employees, business owners, and HR professionals. , June 2023: Oracle introduced Oracle Fusion Cloud Human Capital Management (HCM) with generative AI-powered capabilities to boost HR functions and productivity. These capabilities are embedded in existing HR processes to enhance HR functions, improve productivity, drive faster business value, facilitate HR strategies, and strengthen candidate and employee experience.. Key drivers for this market are: Increasing Shift to Hybrid Workforce by the Organizations to Drive Market. Potential restraints include: Limited Integration of Data and Risk to Data Privacy May Hamper Market Growth. Notable trends are: Implementation of Employee Experience Platform and Robot Process Automation into the Solution to be the Key Trend for Organizations.

The global Artificial Intelligence (AI) in HR market size was valued at USD 4.03 billion in 2025 and is projected to expand at a CAGR of 24.8% from 2025 to 2033. The growing adoption of cloud-based HR solutions, increasing demand for employee engagement, and the need to automate HR processes are driving the market growth. Key market trends include the rising popularity of chatbots and virtual assistants for automating HR tasks, the increasing use of AI for talent acquisition and management, and the growing demand for AI-powered HR analytics. However, concerns over data privacy and security, the lack of skilled AI professionals, and the high cost of implementation remain key challenges. The market is segmented by component, service, deployment mode, enterprise size, application, end-use, and region. North America dominates the market due to the early adoption of AI technologies, followed by Europe and Asia Pacific. Key players in the market include IBM Corporation, Oracle Corporation, SAP SE, Automatic Data Processing Inc., and Cegid Group. Recent developments include: In July 2024, SmartRecruiters announced the Q2 2024 product release, featuring new tools to revolutionize enterprise recruitment. This release demonstrated SmartRecruiters' commitment to innovation, providing talent acquisition teams with advanced tools to attract, select, and hire efficiently. The update introduced AI-powered tools to enhance recruiter efficiency and candidate engagement. The Scorecard Copilot used AI to generate and refine interview scorecard questions, ensuring secure and compliant data handling. The Communication Copilot enabled recruiters to create personalized email campaigns in multiple languages quickly, integrating with SmartRecruit and SmartCRM to enhance candidate engagement. , In September 2023, SAP SE announced Joule, a natural-language, generative AI copilot designed to transform business operations. Joule was embedded throughout SAP’s cloud enterprise portfolio, providing proactive and contextualized insights from SAP solutions and third-party sources. This development reflected SAP’s history of delivering revolutionary technology with tangible results. .

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Human Resource Technology Market Size 2025-2029

The human resource (HR) technology market size is forecast to increase by USD 18.31 billion, at a CAGR of 8.4% between 2024 and 2029.

The market is experiencing significant growth, driven by several key trends. One of the most notable trends is the increasing adoption of HR technology among Small and Medium-sized Enterprises (SMEs). This is due to the cost savings and efficiency gains that HR technology can provide. Another trend is the integration of artificial intelligence (AI) in HR solutions, which is enabling more accurate and data-driven hiring decisions. However, the market also faces challenges, including data security and privacy concerns. As companies adopt more advanced HR technologies, ensuring the security and confidentiality of employee data becomes a top priority. This report provides a comprehensive analysis of these trends and challenges, offering insights into the future growth prospects of the HR technology market.

What will be the Size of the human resource (HR) technology Market During the Forecast Period?

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The market is experiencing significant growth and transformation, driven by the increasing demand for digital solutions to enhance workplace culture, productivity, and employee engagement. AI chatbots and people analytics are leading tech trends, automating routine HR tasks and providing valuable insights for leadership in areas such as talent retention, employee development, and diversity and inclusion. Cloud-based HR software solutions enable remote team management, compliance, and outsourcing, while also facilitating process automation and ethics in areas like recruitment and employee onboarding.
Employee well-being and benefits are also key focus areas, with technology playing a crucial role in employee productivity, engagement strategies, and communication. Digital transformation is a top priority for organizations, with HR technology adoption becoming essential for effective workforce planning and branding. Employee reskilling and diversity and inclusion are also critical areas of focus, as companies seek to stay competitive and foster a culture of innovation and continuous improvement.

How is this human resource (HR) technology Industry segmented and which is the largest segment?

The human resource (HR) technology industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Payroll processing
  Applicant management
  Learning and development
  Talent management
  Others


End-user

  Large enterprises
  Small and medium enterprises (SMEs)
  Government organizations
  Non-profit organizations


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Application Insights

The payroll processing segment is estimated to witness significant growth during the forecast period.

The market encompasses a variety of solutions for managing payroll processing, workforce management, recruitment, and employee experience. Payroll processing solutions are essential, automating salary calculations, tax deductions, benefits management, and pay slip generation. Automated payroll systems streamline the process, reducing HR administrative burden and minimizing errors. Compliance features ensure adherence to local and global payroll regulations. Other HR technologies include cloud-based workforce management tools for scheduling, time tracking, and attendance monitoring, and recruitment platforms for streamlining the hiring process. Employee experience platforms focus on enhancing employee engagement and satisfaction. Payroll processing solutions remain a crucial application within the HR technology market, ensuring accurate and timely compensation for employees while maintaining regulatory compliance.

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The payroll processing segment was valued at USD 5.47 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 42% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is driven by the high adoption rate of advanced HR solutions among businesses of all sizes, with small businesses playing a pivotal role. in the United States, there were approximately 34 million small bus

In 2024, the top way in which HR departments used artificial intelligence (AI) in supporting performance management was to assist managers in providing more comprehensive or actionable feedback to their employees. Almost ** percent of HR professionals said this was the case within their department. Bottom of the list was to identify potential areas of bias within performance evaluations, where only **** percent of respondents gave this as their answer.

The Artificial Intelligence (AI) in Human Resources (HR) market is rapidly transforming the way organizations manage their workforce. As companies increasingly turn to technology to enhance their HR functions, the utilization of AI has grown significantly, making processes such as recruitment, onboarding, performanc

Market Insights

Based on insights provided by Market.us, the Agentic AI in HR & Recruitment market is projected to witness substantial growth, reaching approximately USD 23,172.8 million by 2034, up from USD 842.3 million in 2024, expanding at an impressive compound annual growth rate (CAGR) of 39.3% during the forecast period from 2025 to 2034. The rapid adoption of AI-driven recruitment solutions, automation in HR processes, and demand for data-driven talent acquisition strategies are key drivers fueling this market expansion.

In 2024, North America led the market, capturing over 37.1% of the total revenue, which amounted to USD 312.4 million. The region’s strong position is driven by the widespread adoption of AI-powered HR technologies among large enterprises, the increasing need for efficient hiring processes, and the presence of major AI solution providers. The integration of AI in talent acquisition, employee engagement, and workforce analytics is significantly transforming HR operations across industries.

As organizations continue to prioritize efficiency, diversity, and unbiased recruitment, the demand for AI-driven HR solutions is expected to surge. The expansion of generative AI, machine learning algorithms, and natural language processing in HR applications will further accelerate market growth. With advancements in AI-based predictive hiring, candidate assessment, and workforce management, the Agentic AI in HR & Recruitment market is set to redefine the future of talent acquisition and employee experience globally.

Success.ai’s B2B Contact Data for Human Resources Professionals Worldwide empowers businesses to connect with HR leaders across the globe. With access to over 170 million verified professional profiles, this dataset includes critical contact information for key HR decision-makers in various industries. Whether you’re targeting HR directors, talent acquisition specialists, or employee relations managers, Success.ai ensures accurate and effective outreach.

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5. Includes profiles of HR directors, recruiters, payroll specialists, and training managers.

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8. Design campaigns to promote HR-focused tools, resources, or consultancy services.

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12. Target professionals managing HR digital transformation.

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Leverage B2B Contact Data for Human Resources Professionals Worldwide to connect with HR leaders and decision-makers in your target market. Success.ai offers verified work emails, phone numbers, and continuously updated profiles to ensure effective outreach and impactful communication.

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The global Artificial Intelligence (AI) in Human Resource (HR) market witnessed a valuation of USD 2,136.6 million in 2025 and is projected to reach USD 12,385.1 million by 2033, growing at a robust CAGR of 25.3%. AI is transforming the HR landscape, automating routine tasks such as screening resumes, scheduling interviews, and providing personalized employee training. Companies are increasingly leveraging AI to improve productivity, reduce costs, and enhance employee engagement. However, concerns regarding data privacy and the potential for job displacement may pose challenges to market growth. The market for AI in HR is highly fragmented, with a diverse range of vendors offering various solutions. Key players include ALLYO, ADP, Inc., Ceridian HCM, Inc., Cegid, Cezanne HR Limited, Cornerstone, HireVue, Inc., Infor, Netsuite Inc. (Oracle), SAP SE, Workday, Inc., and others. The market is expected to witness strategic partnerships, mergers and acquisitions, and product innovations as vendors strive to expand their offerings and gain a competitive edge.

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In 2024, the majority of HR managers in the UK claimed to have a****************************y of what artificial intelligence (AI) is. Only ** percent stated they had a good understanding of the technology, with ** percent agreeing that AI can significantly improve HR within their organization.