AI Recruitment Market size was USD 617.5 million in 2024 and is estimated to reach USD 1.52 billion by the end of 2037, expanding at a CAGR of 7.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of AI recruitment is evaluated at USD 661.9 million.
Digital technologies such as artificial intelligence, machine learning, big data analytics, cloud computing, and the Internet of Things are making the work process easy. Today, many companies are investing in digital technologies for a cost-effective, fast, and seamless recruiting process. The talent acquisition teams are able to invest more time in strategic work by implementing AI in performing repetitive tasks such as resume screening and communications.
The University of Southern California reveals that around 55% of companies employ AI in their recruiting process with a view of doing more with less. Also, 56% of organizations believe that automated tools aid in relieving administrative burdens. Thus, AI is emerging as the most modern and effective approach for job seekers and recruiters.
The New York State Society of CPAs also estimates that currently, over 51% of companies are using artificial intelligence in the hiring process, and by 2025-end this is set to increase to 68%. A survey conducted by the New York State Society of CPAs, wherein 948 businesses participated concluded that around 82% of companies are utilizing AI for reviewing resumes, and 40% are utilizing AI chatbots for communication with candidates. Furthermore, 42% of firms are scanning social media or personal websites using AI as part of their hiring process.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.2% |
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Base Year Market Size (2024) |
USD 617.5 million |
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Forecast Year Market Size (2037) |
USD 1.52 billion |
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Regional Scope |
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Deployment (Cloud, On-premises)
Cloud segment is projected to capture AI recruitment market share of around 67.8% by the end of 2037. The prime factors contributing to the cloud AI recruitment solution sales growth are scalability, flexibility, and cost-effectiveness. Also, the cloud-based platforms are accessible from anywhere, which allows recruitment teams across different locations to collaborate seamlessly. Furthermore, continuous innovations in the cloud-based platforms are enhancing the workflow of HR teams
For instance, in November 2024, Bullhorn announced that it collaborated with Salesforce’s Agentforce Partner Network to develop enhanced AI agents. Bullhorn also announced the launch of Bullhorn Recruitment Cloud, which delivers front-to-back solutions, aiding enterprises to grow. These advancements are expected to perfectly meet the evolving demands of the recruitment sector.
Component (Software, Services)
The software segment is expected to capture a dominating share of the global AI recruitment market through 2037. Software solutions are gaining a boom owing to their data-driven decision-making capabilities. Software solutions have more effective results than the conventional recruiting process. Digital technologies such as artificial intelligence, machine learning, deep learning, and the Internet of Things accelerate the hiring process, save potential time, and mitigate labor costs. Some of the top AI recruiting solutions in 2025 are Workable, Humanly, Paradox, Manatal, Wellfound, and HireVue. Continuous technological innovations are further set to augment the profits of market players.
Our in-depth analysis of the global AI recruitment market includes the following segments:
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Component |
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Deployment |
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Vertical |
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North America Market Forecast
North America AI recruitment market is predicted to account for revenue share of around 38.6% by 2037. The rapid digitalization of enterprises, the strong presence of key players, and the vast existence of tech-savvy consumers are collectively augmenting the sales of AI recruitment software solutions. Both the U.S. and Canada are set to offer lucrative opportunities for AI recruitment solution producers.
In the U.S., the increasing emergence of start-ups is strongly influencing the competitive landscape, driving the attention of industry giants on technological innovations. Eightfold, Jumpstart, Gloat, Hire, and RippleMatch are some of the successful start-ups in the country. For instance, in June 2021, Eightfold secured around USD 220 million in series E funding, leading the company’s value to USD 2.1 billion. This underscores the high momentum achieved by the customers in public-private investment.
In Canada, supportive government initiatives such as the Pan-Canadian Artificial Intelligence Strategy, which strongly supports artificial intelligence research and innovations are positively influencing the AI recruitment market growth. Such strategies offer funding for AI research centers and also foster the development of AI talent, accelerating the AI recruitment software introduction.
Asia Pacific Market Statistics
The Asia Pacific AI recruitment market is poised to expand at the fastest pace during the study period. The increasing adoption of smart technologies, growing support for AI use, and expansion of multinational companies are propelling the sales of AI recruitment solutions. India, China, South Korea, Australia, and Japan are the most profitable marketplaces for AI recruitment software developers in Asia Pacific.
India’s expanding IT sector with a deep pool of skilled professionals in areas such as software development, data science, and machine learning significantly contributes to the AI recruitment market growth. For instance, in February 2024, IBM Corporation revealed that over 59% of enterprises in India have invested in AI to accelerate their business operations. The rapid adoption of AI enhances a company’s R&D, reskilling, and hiring processes.
China’s active involvement in enhancing AI adoption and development is creating a lucrative pool for AI recruitment software developers. Supportive government initiatives such as the Next-generation Artificial Intelligence Development Plan are driving significant investments in the production of AI hiring process software solutions.
Key players in the AI recruitment market are employing several organic and inorganic strategies to earn high profits. Start-ups are investing heavily in research and development tactics to introduce innovative solutions to stand out from the crowd and attract a wider consumer base. Industry giants are collaborating with other players to boost their market reach by introducing advanced software technologies. Furthermore, they are also employing global expansion tactics to earn high revenues from untapped markets.
Some of the key players in AI recruitment market:
Author Credits: Abhishek Verma
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