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The AI Recruitment Market size is projected to increase by USD 290.07 million at a CAGR of 7.87% between 2023 and 2028. The market's growth hinges on multiple factors, notably the rising demand for automated processes within the recruitment industry, the need to streamline hiring procedures, and the swift transition toward web-based applications and digitization in recruitment. These trends underscore a fundamental shift towards efficiency and technological advancement, driving the evolution of recruitment practices to meet the demands of a digital era.
Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Alphabet Inc., Ceridian HCM Holding Inc., International Business Machines Corp., Jobvite Inc., Oracle Corp., SAP SE, SmartRecruiters Inc., UKG Inc., Zoho Corp. Pvt. Ltd., Talent Recruit Software Pvt. Ltd., Leoforce LLC., Beamery Inc., Brilent Inc., CVViZ Softwares Pvt Ltd., Entelo Inc., Gloat Inc., hackajob Ltd., Harver B.V., HireTeamMate Inc., and Jobiak. Additionally, Alphabet Inc provides various AI solutions for the recruitment industry, including the Vertex AI platform, Generative AI on Vertex, Vertex AI search and Conversation, Natural Language AI, Translation AI, Video AI, Vision AI, and more.
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The market is driven by the increasing demand for efficient HR solutions in organizations. AI recruitment tools like InCruiter and InCBot, powered by machine learning algorithms, streamline processes such as resume screening and candidate evaluation. However, challenges include ensuring data security with video surveillance and security systems. Integrating AI with Applicant Tracking Systems (ATS) and leveraging Natural Language Processing (NLP) for interview analytics are emerging trends, especially in the SME sector and various verticals. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Demand for streamlining the hiring process in the recruitment industry is notably driving market growth. As organizations recognize the critical importance of the recruitment industry in achieving their business objectives, there is a growing emphasis on improving the efficiency and effectiveness of talent-sourcing processes. Artificial intelligence offers a comprehensive suite of tools and features that streamline various aspects of the recruitment industry, from job posting and candidate sourcing to applicant tracking and onboarding. By automating manual tasks, reducing paperwork, and centralizing candidate data, AI enables recruiters and hiring managers to save time, resources, and effort, allowing them to focus on strategic aspects of recruitment such as candidate engagement and talent pipeline management.
Additionally, the global shift towards remote work and digital transformation has accelerated the adoption of AI in talent-sourcing industry solutions, enabling organizations to manage talent-sourcing processes seamlessly across geographies and remote teams. As businesses strive to attract and retain top talent in a competitive landscape, the demand for artificial intelligence in the talent-sourcing industry is expected to continue growing, thereby driving the growth of the market during the forecast period.
Increasing number of mobile-based recruitment apps is an emerging trend shaping market growth. The adoption of multimedia devices, smart devices, and electronic gadgets has increased. The penetration of smartphones is increasing considerably in developing regions such as APAC, MEA, and South America. This has led to a higher demand for mobile applications (apps) from recruiting sites. More than 90% of people around the globe use mobile devices to search for jobs. Thus, the growing use of smartphones is encouraging various recruiting sites to opt for mobile apps. In 2020, Hirect, a mobile-based talent-sourcing application that directly connects candidates with startup founders, CXOs, and HR, was launched.
Moreover, scrutinizing mobile recruitment apps manually to find the right candidate daily can be a tedious and time-consuming task for recruiters. In such cases, talent-sourcing artificial intelligence can be incorporated into all mobile recruitment apps, in which the candidate selection software will automatically download all the applications and shortlist the candidates' resumes as per the requirements of the company. This will make the recruitment process more efficient. Thus, the growing use of mobile-based recruitment apps can lead to an increase in the demand for artificial intelligence during the forecast period.
Threat from open-source AI in recruitment industry is a significant challenge hindering the market growth. This type of AI in the recruitment industry can be downloaded and run on all platforms, and thus, it is becoming increasingly popular in developing economies such as India and China. Though SaaS-based AI in the talent-sourcing industry is more affordable than services AI in the recruitment industry, some enterprises still cannot afford to invest in either of these solutions. Using open-source artificial intelligence in the talent-sourcing industry ensures that such enterprises incur lower upfront costs and gain more flexibility as well. Thus, many enterprises, especially SMEs that are looking for better plans to expand their businesses at a low cost opt for open-source AI in the candidate selection industry.
For instance, Recruity, a product that was developed as a joint venture between Intermesh, a software manufacturer and Search and Co Group, a recruitment agency, is an open-source AI in the recruitment industry. This software is not only free but can also be customized according to the end-user enterprise's requirements. Other open-source AI in recruitment industry platforms are Fastcollab, Winrecruit, Odoo Recruitment, Ziggeo, Zoho Recruit, and others. All this software can be easily downloaded to the enterprise's own servers for better security and ease of use. Thus, the easy availability of open-source AI in artificial intelligence in recruitment industry will restrict the growth of the market during the forecast period.
In the realm of AI recruitment solutions, cutting-edge tools like InCruiter and InCBot are revolutionizing the HR landscape. Powered by machine learning algorithms, these platforms streamline Automatic Data Processing and enhance hiring efficiency. With platforms like Ultimate Software and SmartRecruiters, organizations leverage AI recruitment technology to optimize their recruitment process. CV ranking/scores and online applications expedite the identification of eligible candidates, reducing the time-consuming task of sifting through resumes. Advanced features like Video surveillance and Security systems ensure a secure and efficient recruitment process, while Bots and Natural Language Processing (NLP) facilitate seamless communication. From large enterprises to the SME sector, AI-driven interview analytics are reshaping hiring practices across various verticals.
The market share growth by the services segment will be significant during the forecast period. The services market segment requires enterprises to have a software license as well as IT staff to manage the AI recruitment solution, regularly upgrade the software, and install data protection solutions. It also requires in-house hardware, which, in turn, necessitates high capital investments. However, artificial intelligence in the talent-sourcing industry is considered highly secure, as there is no third-party interference.
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The services segment was the largest and was valued at USD 341.06 million in 2018. The rapidly changing business environment has made it necessary for organizations to shift to the adoption of SaaS-based AI in candidate selection. This is because, in the services model, apart from the deployment cost of the software, organizations must incur additional expenses on monitoring, maintaining, upgrading, and providing training and support to employees or recruiters. On the other hand, in the SaaS-based AI recruitment model, enterprises do not need to focus on upgrading the AI in the candidate selection industry, as the vendors follow the pay-per-use model. Hence, the shift of enterprises from services artificial intelligence in talent-sourcing to SaaS-based AI in the candidate selection industry can hamper the growth of the services segment during the forecast period. Thus, the services segment of the market in the recruitment industry will be impacted negatively during the forecast period.
The market in the recruitment industry is undergoing a technological shift driven by the advent of cloud computing. This segment will dominate and have a major market share till the end of the forecast period. Though the cloud model is cost-efficient, many organizations that are financially strong do not opt for it due to security concerns associated with the public cloud. Cloud-based AI in the recruitment industry offers several benefits, such as real-time application performance analytics, regular security updates, global accessibility from any location, and scalability. Various organizations have started using cloud-based artificial intelligence in the talent-sourcing industry owing to such benefits. Thus, this segment is expected to grow owing to the increasing adoption of cloud-based AI in the recruitment industry by SMEs and enterprises looking to move toward cloud systems, and, hence, it is expected to drive the growth of the cloud segment of the market in talent-sourcing industry during the forecast period
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Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the AI recruitment market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The demand for AI in recruitment is expected to grow in North America due to the shift among enterprises to automation and the rise in the number of startups, especially in countries such as the US and Canada. The major reason for the growth of the artificial intelligence market in the candidate selection industry in the region is the increasing acceptance of advanced technologies and the rapid digitalization of industries. The demand for AI in talent-sourcing is primarily generated by the IT services, healthcare, banking, and retail industries. Cornerstone, a US-based vendor operating in the AI market in the candidate selection industry, offers a recruiting suite that allows recruiters to focus on selecting the correct talent. In this solution, the company offers application tracking and employee onboarding.
Further, in application tracking, the solution simplifies the hiring process by centralizing and managing the information related to candidate selection. Application tracking also enables enterprises to reach a more diverse set of job seekers and shortlist candidates faster, thus helping them (enterprises) make faster and more informed decisions with regard to hiring. Similarly, in employee onboarding, the solution helps enterprises make new hires become proactive and acclimatized faster by providing an engaging and automated employee onboarding experience. Thus, such solutions also help enterprises reduce their paperwork while simultaneously providing new employees with important resources. Such factors are expected to drive the regional market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
UKG Inc - The company offers Hackajob AI in recruting to help talent seekers to identify the right talent to hire, DE and I focused pipeline filters and targeted hiring objectives.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
In today's competitive job market, problem-solving skills are paramount, driving the demand for latest generation software in the organization's recruitment department. With a surge in job applications, the need for advanced tools that efficiently verify and sort candidates has intensified. Employers seek a cost-effective plus reliable solution to manage essential tasks while optimizing time and resources. Enter the realm of automated hiring process, where application screening and interview scheduling software ensure a consistent hiring process while enhancing applicant engagement. Artificial intelligence plays a pivotal role in streamlining hiring operations, facilitating seamless candidate communication through chatbots and automated responses. However, balancing technological advancements with the need for human interaction is crucial to avoid a detrimental effect on the employment process.
Further, leading the charge are AI technology giants, offering cutting-edge solutions tailored for the corporate sector. Cloud-based services, coupled with AI pattern recognition and Data labeling, are reshaping talent acquisition platforms across industries like IT and Telecommunication BFSI (Banking, Financial Services, and Insurance). Platforms like Weka Data Platform and Weka X Partner Program provide development potential with their Generative Pre-trained Transformer 3 model, catering to the evolving needs of diverse and transformational workforces in the Enterprise segment. As the recruitment landscape evolves, embracing innovative solutions like Hire EZ becomes imperative to stay ahead in the race for top talent.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.87% |
Market Growth 2024-2028 |
USD 290.07 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.65 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Ceridian HCM Holding Inc., International Business Machines Corp., Jobvite Inc., Oracle Corp., SAP SE, SmartRecruiters Inc., UKG Inc., Zoho Corp. Pvt. Ltd., Talent Recruit Software Pvt. Ltd., Leoforce LLC., Beamery Inc., Brilent Inc., CVViZ Softwares Pvt Ltd., Entelo Inc., Gloat Inc., hackajob Ltd., Harver B.V., HireTeamMate Inc., and Jobiak |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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