Generative Artificial Intelligence (AI) in Human Resources (HR) Market Report 2025

This Generative Artificial Intelligence (AI) in Human Resources (HR) market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The generative artificial intelligence (AI) in human resources (hr) market size has grown rapidly in recent years. It will grow from $0.63 billion in 2024 to $0.75 billion in 2025 at a compound annual growth rate (CAGR) of 18.3%. The growth in the historic period can be attributed to the rise of data-driven decision-making, demand for personalized employee experiences, evolution of recruitment processes, emergence of advanced analytics tools, the growing importance of diversity and inclusion initiatives, and shift towards remote and hybrid work environments.

The generative artificial intelligence (AI) in human resources (hr) market size is expected to see rapid growth in the next few years. It will grow to $1.45 billion in 2029 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to the growth of AI technology adoption, increasing complexity of workforce management, demand for enhanced employee engagement strategies, necessity for real-time performance feedback mechanisms, focus on continuous learning and development, expansion of AI capabilities in predictive analytics, integration of AI with existing HR systems to streamline operations. Major trends in the forecast period include increasing adoption of AI-powered chatbots and virtual assistants, growing use of machine learning algorithms for talent management and workforce planning, rising demand for personalized employee experiences through AI-generated content, expanding application of AI in recruiting and hiring processes, integration of AI with existing HR systems for enhanced efficiency, increasing focus on AI-driven performance management and employee development, anticipated growth of the cloud-based deployment of generative AI solutions in HR.

The growing demand for automation is expected to significantly drive the expansion of generative artificial intelligence (AI) within the human resources (HR) market. Automation, which involves executing tasks with minimal human input to boost efficiency and productivity, is increasingly sought after for its ability to replace manual efforts with automated systems. This rising demand for automation is largely fueled by the need for greater efficiency, cost reductions, and improved accuracy. Generative AI in HR supports this shift by automating repetitive tasks such as candidate screening, job description creation, and performance evaluations. This technology not only improves HR efficiency and reduces manual workloads but also allows HR professionals to concentrate on more strategic roles. For example, a study conducted by the Department for Digital, Culture, Media & Sport (DCMS) and Capital Economics in January 2022 projected a significant increase in AI adoption from 15.1% in 2020 to 22.7% by 2025. This indicates that an additional 267,000 businesses will integrate AI into their operations. Furthermore, by 2040, approximately 34.8% of businesses are expected to adopt AI, equating to around 1.3 million companies utilizing the technology. Thus, the surge in automation is a key driver for the growth of generative AI in HR.

Key players in the generative AI in HR market are advancing their proprietary AI technologies to improve recruitment processes, enhance candidate sourcing, boost employee engagement, automate routine HR tasks, and offer data-driven insights for better workforce management. Proprietary AI technology refers to artificial intelligence systems and algorithms that are uniquely developed and owned by a company or individual, protected by intellectual property rights such as patents, copyrights, or trade secrets. For instance, in March 2023, Beamery, a UK-based talent engagement and recruitment software company, introduced TalentGPT, the world’s first generative AI for HR technology. TalentGPT utilizes Beamery’s proprietary AI alongside advanced large language models such as OpenAI’s GPT-4 to offer highly personalized HR solutions. This innovation allows for real-time customization of content, job descriptions, email templates, and career recommendations to align with the specific needs of organizations and employees, aiming to transform HR practices.

In April 2024, Apax Funds, a UK-based private equity firm, acquired Zellis Group for an undisclosed sum. Apax plans to utilize Zellis’s robust product offerings and established customer relationships to drive future success. With previous investments in the sector, such as Paycor, Apax’s expertise is expected to enhance Zellis’s technology and market approach, strengthening its position. Zellis Group, a UK-based provider of HR and payroll solutions, offers a range of services including generative AI-powered solutions such as a chat interface.

Major companies operating in the generative artificial intelligence (AI) in human resources (HR) market are International Business Machines Corp., Oracle Corporation, SAP SE, Automatic Data Processing Inc, Workday Inc., Cegid Group S.A., Cornerstone OnDemand Inc, Phenom People Inc, Jobvite Inc, Harver B.V., Eightfold AI Inc., Beamery Inc., Paradox Inc., Workable Technology Limited, ClearCompany Inc., Aisera Inc., Gloat Inc, JobAdder Operations Pty Ltd, SeekOut, TEXTIO INC., TalentGuard Inc., Cezanne HR Limited, Pymetrics Inc.

North America was the largest region in the generative artificial intelligence (AI) in human resources (HR) market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in human resources (HR) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence (AI) in human resources (HR) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in human resources (HR) involves using AI models to create new content, such as text, images, or audio, to support various HR tasks and processes. These AI models, trained on large datasets, can generate novel outputs that resemble the data they were trained on.

The main technologies of generative AI in HR include machine learning, natural language processing, deep learning, computer vision, and robotic process automation. Machine learning (ML) in HR enables AI systems to learn from data and improve over time without explicit programming. Deployment options include cloud-based and on-premise solutions, used for applications such as recruiting and hiring, onboarding, performance management, and overall efficiency improvements.

The generative artificial intelligence (AI) in human resources (HR) market research report is one of a series of new reports that provides generative artificial intelligence (AI) in human resources (HR) market statistics, including generative artificial intelligence (AI) in human resources (HR) industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in human resources (HR) market share, detailed generative artificial intelligence (AI) in human resources (HR) market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in human resources (HR) industry. This generative artificial intelligence (AI) in human resources (HR) market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative artificial intelligence (AI) in the human resources (HR) market includes revenues earned by entities by providing services such as predictive analytics, AI-driven recruitment solutions and related talent management and development, human resources (HR) system integration, and administrative automation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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