According to a new report, published by KBV research, The Global Artificial Intelligence In HR Market size is expected to reach $15.9 billion by 2031, rising at a market growth of 24.4% CAGR during the forecast period.
The Services segment is anticipating a CAGR of 25.8% during (2024 - 2031). As companies increasingly adopt AI-powered HR systems, there is a growing need for expert guidance in integrating these technologies into existing HR infrastructures. Service providers are essential in the provision of tailored AI solutions, the seamless implementation of these solutions, and the provision of continuous support to enhance the performance of AI-driven HR systems. Additionally, the complexity of AI technology often requires continuous training and maintenance to ensure systems remain compliant with evolving regulations and business needs. The demand for these value-added services has contributed to the significant growth of the services segment.
The Cloud market is leading the Global Artificial Intelligence In HR Market by Deployment Mode in 2023; thereby, achieving a market value of $11.8 billion by 2031. Cloud-based AI platforms allow businesses to access HR tools from anywhere, which is particularly important in the remote and hybrid work era. These solutions offer seamless integration with other cloud services, automated updates, and lower upfront costs, making them attractive to small and large enterprises. The global transition to digital transformation and the added convenience of subscription-based cloud models have expedited the adoption of cloud-based AI HR solutions.
The SMEs segment is registering a CAGR of 25.3% during (2024 - 2031). Cloud-based AI solutions, in particular, have made it easier for small & medium enterprises (SMEs) to access cost-effective HR technologies without significant upfront investments. AI helps SMEs automate time-consuming tasks such as payroll processing, recruitment, and employee onboarding, allowing smaller HR teams to focus on strategic initiatives.
The Recruitment & Hiring segment is generating the maximum revenue in the Global Artificial Intelligence In HR Market by Application in 2023; thereby, achieving a market value of $4.7 billion by 2031. The increasing prevalence of AI tools in the recruitment process has contributed to this dominance by streamlining and automating the process, thereby enhancing the accuracy of candidate selection and reducing the time-to-hire. AI-driven platforms use machine learning algorithms and natural language processing (NLP) to screen resumes, match candidates to job requirements, and predict candidate success, helping organizations find the best talent quickly. Global companies like LinkedIn and IBM have implemented AI solutions to enhance their recruitment processes, contributing to the segment's significant market share.
The Government market would showcase 26.4% during (2024 - 2031). Financial institutions are adopting AI-based HR solutions to automate regulatory compliance, manage large teams, and enhance employee productivity. For instance, AI-driven tools help BFSI firms streamline recruitment by identifying candidates with relevant financial expertise and predicting their long-term success. Additionally, AI tools are used to comply with labor regulations, track employee performance, and manage sensitive payroll data while ensuring data security—a key concern in the finance industry. Companies in the BFSI sector are increasingly adopting AI solutions to handle these complex HR functions efficiently.
Full Report: https://www.kbvresearch.com/artificial-intelligence-in-hr-market/
The North America region dominated the Global Artificial Intelligence In HR Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $6.2 billion by 2031. The Europe region is experiencing a CAGR of 23.9% during (2024 - 2031). Additionally, The Asia Pacific region would exhibit a CAGR of 25.4% during (2024 - 2031).
By Component
By Deployment Mode
By Enterprise Size
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By End Use
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