AI in Talent Acquisition Market Report 2024

This AI In Talent Acquisition market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The AI in talent acquisition market size has grown rapidly in recent years. It will grow from $0.96 billion in 2023 to $1.13 billion in 2024 at a compound annual growth rate (CAGR) of 18.6%. The growth observed in the historical period can be attributed to several factors, the automation of routine tasks, improved candidate matching, data-driven insights, a better candidate experience, and cost reductions.

The AI in talent acquisition In Talent Acquisition market size is expected to see rapid growth in the next few years. It will grow to $2.25 billion in 2028 at a compound annual growth rate (CAGR) of 18.7%. The projected growth during the forecast period is driven by several factors, advancements in AI technology, the increase in remote work and global talent pools, improved candidate experience, better recruitment metrics and reporting, and enhanced screening and matching processes. Key trends expected in this period include advancements in natural language processing (NLP), integration with other HR technologies, personalized candidate engagement, enhanced predictive analytics, and the expansion of AI capabilities.

The shift toward remote work is expected to drive the growth of AI in the talent acquisition market moving forward. Remote work, also known as telecommuting or working from home, refers to a work arrangement where employees perform their duties from a location outside the company’s physical office. This trend is gaining momentum due to its flexibility, technological advancements, and the growing demand for better work-life balance. AI in talent acquisition for remote work boosts efficiency by automating candidate screening, improving job matching, and streamlining recruitment processes across diverse, global talent pools. For example, in September 2023, the Bureau of Labor Statistics, a unit of the U.S. Department of Labor, reported that in August 2023, around 19.5% of workers teleworked or worked from home for pay, maintaining a telework rate between 17.9% and 20% from October 2022 to August 2023. As a result, the shift toward remote work is accelerating the growth of AI in the talent acquisition market.

Leading companies in the AI talent acquisition market are focusing on developing advanced solutions, such as AI-powered recruitment tools, to maintain their competitive edge. These tools use artificial intelligence to optimize and enhance hiring processes, including candidate sourcing, resume screening, interview scheduling, and engagement. For instance, in April 2023, Indeed, a US-based employment company, introduced Smart Sourcing, an AI-powered tool designed to simplify the hiring process for employers. This tool provides access to a vast talent pool of nearly 300 million candidates worldwide by utilizing profiles and resumes available on the platform. Smart Sourcing employs an advanced AI matching engine to swiftly identify the most suitable candidates for specific job openings based on their skills, experience, and qualifications. This allows employers to efficiently review matched candidates, connect with them directly, and expedite their hiring decisions.

In May 2023, HireVue, a U.S.-based company specializing in video interviewing and assessment software, acquired Modern Hire for an undisclosed amount. This acquisition aimed to enhance HireVue's talent acquisition solutions by integrating Modern Hire's advanced AI-driven hiring platform, which focuses on improving candidate assessments and streamlining the recruitment process. Modern Hire, also based in the U.S., is recognized for its innovative use of AI and data analytics to create more effective and equitable hiring practices.

Major companies operating in the AI in talent acquisition market are International Business Machines Corporation, Oracle Corporation, SAP SE, Cornerstone OnDemand Inc., Cielo Talent, HackerRank, Phenom People, Bullhorn Inc., iCIMS Inc., Greenhouse Software, SmartRecruiters Inc., Eightfold.ai, Visier Inc., CEIPAL Corp., Jobvite Inc., HireVue, Beamery, Talview, Hiretual, Yello Co, Textio, XOR, Ideal, Ascendify, Pymetrics, Recruiterbox, Clinch.

North America was the largest region in the AI in talent acquisition market in 2023. The regions covered in the AI in talent acquisition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the AI in talent acquisition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in talent acquisition involves using AI technologies to automate, enhance, and streamline different aspects of the hiring process. AI-driven tools and platforms analyze extensive data to align candidates with job requirements, predict job performance, and boost the efficiency and effectiveness of recruitment practices.

The primary components of AI in talent acquisition include solutions and services. AI solutions consist of software tools and platforms that automate and optimize various recruitment tasks. Applications of these solutions cover candidate sourcing, resume screening, interview scheduling, and candidate engagement, among others. These tools are utilized across diverse industry sectors such as information technology (IT) and telecommunications, banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, manufacturing, and more.

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

The AI in talent acquisition market includes revenues earned by entities by providing services such as candidate sourcing, resume screening, interview scheduling, candidate engagement, and other recruitment activities. 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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