Global AI Recruitment Market - 2023-2030

Overview

Global AI Recruitment Market reached US$ 605.4 Million in 2022 and is expected to reach US$ 1,019.1 Million by 2030, growing with a CAGR of 6.7% during the forecast period 2023-2030.

The growing availability of AI recruitment solutions and services in the market helps to boost the market growth. On September 20, 2023, InCruiter launched InCBot, an AI interview solution for smarter and unbiased hiring. It helps to enhance candidate experiences, conduct one-way video interviews and secure top-tier talent. InCBot seamlessly conducts interviews 24/7 across various roles, industries and experience levels, while providing real-time feedback, suggestions and insights to both candidates and employers, thereby elevating the interview experience to an unprecedented level.

AI recruitment tools leverage data analytics and predictive modeling to provide insights into recruitment trends and hiring outcomes. The data-driven approach enables organizations to make informed decisions and continuously optimize their recruitment strategies. AI algorithms analyze large datasets to identify candidates whose skills and qualifications closely match the job requirements. The results in more accurate and efficient candidate shortlisting, improving the quality of hires.

North America accounted largest market share in the AI Recruitment market due to the rise of remote work has increased the demand for virtual hiring solutions. Growing adoption of AI recruitment solutions and software helps to boost regional market growth over the forecast period.

For instance, on November 16, 2023, TD SYNNEX Direction of Technology Report showed that channel partners in North America are focused on expanding their high-growth technology capabilities like data analytics, artificial intelligence (AI) and cybersecurity through both investment and skill acquisition. According to the data given by MS Power User in 2023, in United States, 83% of companies have adopted AI in HR.

Dynamics

Rising Demand of Automated Hiring Process Globally

Automated hiring processes, facilitated by AI recruitment tools, significantly reduce the time and effort required for various stages of recruitment. The efficiency is crucial for organizations looking to streamline their hiring workflows and fill positions quickly. Nowadays job postings attract a large number of applications due to growing digitalization. Automated systems efficiently handle high volumes of resumes and candidate data, ensuring that recruiters focus on more strategic aspects of the hiring process.

According to the data given by Talent Alpha Sp. z.o.o a Survey in 2022, 67% of recruitment professionals believe that AI has a positive impact on hiring and not just in cutting costs. 4 out of 5 of those surveyed believe that AI will soon be so advanced that these programs will handle key hiring and firing decisions. 68% of HR professionals have high hopes that AI will be more bias-free and enable more equal opportunities.

Technological Advancements

Machine learning algorithms power the intelligence and learning capabilities of AI recruitment tools. The algorithms analyze vast datasets to identify patterns, predict candidate success and continuously improve the accuracy of candidate matching. Predictive analytics uses historical data to forecast future trends and outcomes. In the context of AI recruitment, predictive analytics helps organizations make informed decisions about candidate sourcing, hiring strategies and workforce planning.

The pandemic has accelerated the technological advancement in the HR industry as well as its digitalization. Hiring has become increasingly dependent on software and algorithms. According to the data given by Talent Alpha Sp. z.o.o in 2022, half of companies globally have decided to increase spending on technology 2022 and 84% of them have a plan for digitalization. Organizations invested significantly more in automation to foster sourcing processes. It's little wonder then that technology breakthroughs for 53% of professionals will be the most significant factor in shaping the future of work. 38% of employers are investing in new hiring technologies.

Lack of Human Interaction and Low Awareness

Candidates often appreciate personal interaction during the hiring process. The absence of human interaction can lead to concerns about a lack of empathy, understanding and the ability to address nuanced aspects of a candidate's profile or situation. Human recruiters build trust and relationships with candidates, which is crucial for employer branding and long-term employee satisfaction. Relying solely on AI may be perceived as impersonal and less effective in building these connections.

A significant barrier to the growth of AI recruitment tools is the lack of awareness among organizations and HR professionals about the capabilities and benefits of these technologies. The can lead to resistance to adopting AI tools due to fear of the unknown or concerns about job displacement. Low awareness can result in the ineffective implementation of AI tools. Organizations may not fully utilize the features and functionalities of AI recruitment solutions, limiting their impact on efficiency and decision-making.

Segment Analysis

The global AI Recruitment market is segmented based on product, application, end-user and region.

Growing Adoption of AI Recruitment Solutions in the Various Industries

Based on the product, the AI recruitment market is divided into solutions and services. AI recruitment solutions segment is growing over the forecast period 2023-2030 due to its growing efficiency and time savings. AI recruitment solutions automate and streamline various aspects of the hiring process, saving time for recruiters and HR professionals. Automated resume screening, candidate matching and scheduling significantly reduce the time spent on repetitive tasks.

The growing availability of AI recruitment solutions in the market helps to boost segment growth. For instance, on August 09, 2023, Harver launched an AI-powered Harver CHAT solution to optimize candidate engagement in hiring. It is designed to automate and streamline the application experience for candidates while boosting the employer brand. The newly launched AI chat solution replaces the need for application forms by engaging candidates with always-on messaging.

Geographical Penetration

Growing Early Adoption of AI in North America

North America accounted for the largest market share in the global AI recruitment market due to the rapid adoption of Artificial Intelligence. The growing number of tech giants and startups that actively invest in and develop AI technologies, including those related to recruitment. North America boasts a well-established and robust IT infrastructure. The infrastructure supports the implementation and integration of AI recruitment tools and platforms into existing systems, making it easier for companies to adopt and utilize these technologies.

Major key players in the region launched new products for AI recruitment that help boost the regional market growth of the global AI recruitment market. For instance, on April 05, 2023, Comeet, a leading provider of collaborative recruiting software launched its new AI Assistant, designed to enable better hiring decisions and improve candidate experience and promote diversity and inclusion.

Competitive Landscape

The major global players in the market include SAP SE, Zoho Corporation, Google LLC, IBM Corporation oracle Corporation, Automatic Data Processing, LCC, Ultimate Software, SmartRecruiters, Jobvite and CVViZ Softwares Pvt Ltd.

COVID-19 Impact Analysis

The pandemic accelerated the adoption of remote work, leading to increased demand for virtual recruitment solutions. AI tools that facilitate remote hiring processes, such as video interviews, virtual assessments and automated screening, became more crucial. The economic impact of the pandemic resulted in fluctuations in the job market. Some industries experienced a surge in hiring (e.g., healthcare, e-commerce), while others faced significant challenges (e.g., hospitality, travel). AI recruitment platforms had to adapt to changing demand and market dynamics.

With disruptions to traditional recruitment processes organizations sought efficiency through automation. AI-powered tools helped streamline workflows, automate repetitive tasks and manage large volumes of applications efficiently. The pandemic prompted shifts in the skills demanded by employers. AI tools that assist in skill assessments and identify relevant candidate skills became more critical. Additionally, there was an increased focus on reskilling and upskilling programs and AI could play a role in identifying training needs.

Russia-Ukraine War Impact Analysis

Geopolitical events, especially conflicts lead to economic uncertainty. Businesses become more cautious about their investments, including spending on technologies such as AI recruitment tools. War or geopolitical tensions contribute to market volatility, impacting investor confidence and corporate decision-making. Companies delay or scale back their technology investments in such uncertain environments. The conflict leads to disruptions in the global supply chain, it affects the production and availability of hardware components and infrastructure necessary for AI technologies.

Geopolitical events influence the movement of talent across borders. Changes in immigration policies or security concerns affect the ability of companies to attract and retain skilled AI professionals. Companies reassess their global strategies and focus on regions that are perceived as more stable. The led to changes in demand for AI recruitment solutions in different geographic areas. Governments introduce new policies and regulations in response to geopolitical events. Changes in regulatory environments impact the development, deployment and use of AI technologies in recruitment.

By Product

• Solution
• Services

By Application

• Process automation
• Campaigning
• Candidate screening
• Candidate communication
• Others

By End-User

• Retail and ecommerce
• Banking, financial and insurance
• Healthcare
• Hospitality
• Energy
• Government
• Enterprise
• Manufacturing
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On December 05, 2023, RedNevada. AI the leading provider of AI-enabled software launched RAI, the most comprehensive and advanced recruitment and resourcing co-pilot solution in the market. The tool was extensively tested with a wide range of pilot customers across multiple geographies and industries to ensure efficiency and cost saving and that it properly assisted the people who will directly benefit from a toolset such as RAI.
• On October 09, 2023, Kelly Arc, a new online recruitment platform launched a recruitment platform for AI and automation talent. The AI tool closes the gap by connecting top talent, such as developers, analysts and project managers, with pioneering jobs.
• On October 30, 2023, India Quotient-backed edtech startup Masai School launched an artificial intelligence (AI)-powered platform for job seekers and recruiters. It helps job-seekers find relevant listings after a detailed competency assessment with the help of 90-minute interviews with tech leads in Indian companies.

Why Purchase the Report?

• To visualize the global AI recruitment market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of AI recruitment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global AI recruitment market report would provide approximately 61 tables, 64 figures and 218 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies