AI Recruitment Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[204+ Pages Report]  According to the report published by Facts & Factors, the global AI recruitment market size was worth USD 610.3 million in 2021 and is estimated to grow to USD 890.51 million by 2028, with a compound annual growth rate (CAGR) of approximately 6.5% during the forecast period. The report analyzes the AI recruitment market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the AI recruitment market.

Market Overview

AI for recruitment is the application of machine learning capabilities to the recruitment function, such as learning or problem-solving. Artificial intelligence (AI) used for resume screening simulates how a human would evaluate a resume and can assign a score to each applicant based on this unbiased evaluation. Any organization can benefit from AI recruiting technology. This technology streamlines the analysis of online applications. Large corporations have a lot of open positions. Manually testing this application takes time. AI can help recruiters save time when screening and interviewing candidates. It also assists companies or recruiters in improving the quality of their employee hires. The increasing demand for predictive analytics as a critical component of the recruitment process is accelerating the adoption of AI technology. The need to screen large amounts of data, such as a resume, without human intervention drives global market growth. Nonetheless, the low personnel presence in AI recruitment and the low awareness of AI recruitment tools may challenge the AI recruitment industry over the forecast period. Lack of proactiveness demonstrated by firms in embracing new technologies by sourcing & recruiting personnel and a scarcity of technically skilled recruiters can impede market expansion.

COVID-19 Impact:

Following the COVID-19 pandemic lockdown, implementing AI in recruitment procedures has become more prevalent. Whether offices are currently teleworking, planning, or normal, the pandemic has shifted its focus to AI technologies to streamline hiring and recruiting while maintaining the practice of social distancing. The coronavirus has increased the adoption of video interview methods and other online candidate evaluation tools that rely heavily on AI and its decision-making abilities. COVID-19 appears to have increased the number of live interviews conducted via platforms such as Zoom, Skype, and others. Companies are focusing even more on attracting candidates suitable for the organization in this crisis. Increased deployment of AI chatbot posts during the pandemic has created market opportunities.

Key Insights

• As per the analysis shared by our research analyst, the global AI recruitment market value will grow at a CAGR of 6.5% over the forecast period.
• In terms of revenue, the global AI recruitment market size was valued at around USD 610.3 million in 2021 and is projected to reach USD 890.51 million by 2028.
• The growing demand among recruiters to automate the complex hiring process and the increasing need to improve the recruitment process quality are the major factors driving the market growth.
• By product, the services category dominated the market in 2021.
• By application, the process automation category dominated the market in 2021.
• North America dominated the global AI recruitment market in 2021.

Growth Drivers

• Increasing need for automated processes in recruitment to drive market growth

The organization's increasing demand for an automated process for screening and shortlisting candidates has increased the use of AI in recruitment. Moreover, AI has enabled the processing of hundreds of resumes per minute, reducing human error, and increasing the reliability of the hiring process. The automated process improves candidate engagement by making interview scheduling software easier to use during the hiring process. Furthermore, implementing an automated process leads to using a candidate relationship management (CRM) system to run recruitment operations efficiently. Implementing effective software and systems increased the demand for automated processes, further fueling the global AI recruitment market growth.

Restraints

• Lack of human interaction and low awareness of AI recruitment tools hinders the market growth

The most common barrier to adopting AI in recruitment is a lack of human intervention or touch. According to a recent survey, most applicants prefer human communication over interacting and conversing with chatbots or receiving automated responses. Besides, the robots used in the recruiting process cannot compensate for the lack of human touch, negatively impacting the hiring process from a candidate's perspective. Many regions are unaware of AI recruitment technology. A lack of awareness may hamper this market's overall growth. AI software is widely used in large corporations. However, a lack of adoption in small-to-medium enterprise and other verticals may reduce awareness. Many regions are still unaware of the benefits and functions of this software. These factors can cause market uncertainty and change.

Segmentation Analysis

The global AI recruitment market has been segmented into end-users, products, applications, and region.

Based on end-users, the market is divided into retail & e-commerce, banking, financial services & insurance, healthcare, hospitality, energy, government, enterprise, and manufacturing. Among these, the banking, financial services & insurance (BFSI) segment led the market in 2021 and is expected to maintain its dominance throughout the forecast period. The Banking, Financial Services, and Insurance (BFSI) industry are embracing the need for AI in hiring and offering proactive and tailored customer service. The financial sector is extremely dynamic, and policies and regulations frequently change, making it difficult for banks to keep employees up to date. Furthermore, most banks began using chatbots to enhance the customer experience and reduce costs. These factors contribute to the segment's expansion, driving market demand over the forecast period.

Based on products, the market is classified into solutions and services. In 2021, the services category dominated the global market owing to the growing demand for technological infrastructure and resource development. The use of cloud-based services is growing, and national government initiatives to promote digitalization have increased the demand for AI recruitment technology.

Based on applications, the market is classified into process automation, campaigning, candidate screening, and candidate communication. The process automation segment dominated the market in 2021 due to the incorporation of AI with new technologies. Large-scale businesses are implementing recruiting process automation. AI recruitment technology can now review hundreds of resumes per minute, reducing the possibility of human error and increasing the consistency of the recruiting process. Improving the quality of the recruiting process is another major driver for this segment.

Recent Developments

• June 2020: CareerBuilder enhanced its Talent Acquisition Suite by including innovative tools that assist HR managers in reaching out to top-tier candidates while dealing with issues encountered during recruitment. The new tools provide a Talent Discovery Platform that now includes AI and machine-learning capabilities, allowing businesses to find exceptional talent quickly.
• January 2020: ConqHR is a new HR suite from IndiaFilings.com, an Indian provider of cloud-based business services. The full cloud-based suite will assist SMEs and large businesses in managing staff management tasks such as compliance, payroll, attendance, and onboarding.

Report Scope

Regional Landscape

• North America dominated the AI recruitment market in 2021

North America dominates the global AI recruitment market due to the region's high adoption of AI-based machine learning platforms to ensure an efficient hiring process. The growing number of IT companies in the U.S. contributes to the region's market growth. The U.S. was the first to employ cutting-edge technology such as artificial intelligence and machine learning. Due to its advanced economic system, robust network infrastructure, and easy access to qualified professionals, the U.S. currently leads the regional market, followed by Canada. Furthermore, most of the leading companies focused on developing AI-based recruitment and selection solutions to address various applications of the recruiting process are headquartered in the region, aiding regional AI recruitment market growth.

Competitive Landscape

• SAP SE 
• TalentRecruit 
• Zoho Corporation 
• TalentMind 
• Google LLC 
• Mya Systems Inc 
• IBM Corporation 
• Textio 
• Oracle Corporation 
• HireVue 
• Automatic Data Processing LCC 
• CVViZ Softwares Pvt Ltd 
• Ultimate Software 
• Jobvite 
• SmartRecruiters.

Global AI Recruitment Market is segmented as follows:

By End-users

• Retail and eCommerce
• Banking, Financial Services and Insurance
• Healthcare
• Hospitality
• Energy
• Government
• Enterprise
• Manufacturing

By Product

• Services
• Solution

By Application

• Process Automation
• Campaigning
• Candidate Screening
• Candidate Communication

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America