Artificial Intelligence (AI) in Recruitment Market size was valued $580 million in 2019, estimated to grow at a CAGR of 6.76% during 2020-2025. The growing demand for predictive analytics as an important part of the recruitment process is enhancing the adoption of artificial intelligence technology. The rising need for AI-based platforms such as chatbots, machine learning, and process automation are further implementing the AI in recruitment industry. Additionally, the need for screening large amount of data such as resume of the candidate without leading to human interference are further boosting the growth of the market during the forecast period.
- In 2019, the AI in recruitment market was dominated by North America owing to increasing availability of tech companies comprising the adoption of AI for hiring process.
- Business, Financial Services and Insurance (BFSI) sector is highly embracing the need for AI for hiring and providing proactive and personalized customer support
- The increasing demand for automated process for screening and shortlisting applicants in order to reduce human error has highly fueled the growth of the AI in recruitment market.
- The lack of human interaction or human touch in the AI recruitment process is impacting the adoption of AI-based platform for hiring. As candidates are still preferring human interaction effective communication and hiring.
End-user – Segment Analysis
Enterprises segment held the largest market share in the AI in recruitment market in 2019. As the enterprise segment includes BFSI which is highly embracing the AI for the hiring process. The financial industry is highly dynamic, and the regulations and policies change frequently which leads bank to struggle in order to keep employees updated. . Moreover, majority of the banks started using chatbots for improving customer experience and reduction in costs. This factors are enhancing the growth of the enterprise segment further surging the demand for the AI in recruitment market.
Geography – Segment Analysis
In 2019, North America dominated the Artificial Intelligence (AI) in recruitment market with a share of more than 43.7%, followed by Europe and APAC. In North America, the companies are highly adopting AI-based machine learning platform for experiencing the efficient hiring process. Moreover, the rising number of tech companies in the US are highly enhancing the growth of the market in this region. According to Bullhorn (2018), the improvements in the sourcing and screening of candidates in the initial stages of the recruitment process has further fueled the growth of the market in North America.
Drivers – Artificial Intelligence (AI) in Recruitment Market
- Increasing need for automated process
The rising demand for automated process for screening and shortlisting candidates by organization has enhanced the adoption of AI in recruitment. Moreover, AI has also provide the capability to process hundreds of resumes per minute which reduces the lack of human error and provides reliability to the hiring process. The automated process enhances the candidate engagement by simplifying the scheduling with the help of interview scheduling software during the hiring process. In addition, the implementation of automated process also leads to the usage of candidate relationship management (CRM) system for running the recruitment operations efficiently. These implementation of effective software and system lead to the increasing need for automated process further fueling the the growth of the AI in recruitment market.
- Enhancing communication with candidate during recruitment process
Artificial intelligence enhances the communication with the candidate during the recruitment process. As, it allows for continuous communication with the applicant that is a pain point for a recruiter. AI also handles routine communicative operations including the arrangement of interview, sending texts, notification when receiving resume, sending feedback and so on. It also personalizes the messages which are based on the information available about a candidate. Thus, the need for enhanced communication during recruitment surge the adoption of AI in recruitment market.
Challenges – Artificial Intelligence (AI) in Recruitment Market
- Lack of Human Interference
The most common challenge that is hampering the adoption of AI in recruitment is the lack of human interference or human touch. It is also surveyed that majority of the applicants prefer human communication more than interacting and talking with chatbots or receiving automated replies. Also, the robots which are used for recruiting process are unable to fill the lack of human touch that considerable forms a negative impact on the hiring process from a candidate point of view.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Artificial Intelligence (AI) in Recruitment market. In 2019, the market of Artificial Intelligence (AI) in Recruitment has been consolidated by the major players – Beamery, Brilent, Inc., Entelo, Gloat, hackajob, Harver B.V., Hiretual, Ideal, Jobiak and Leoforce, LLC.,
- In December 2018, Jobiak announced the launch of its flagship platform for recruiters and talent acquisition teams in order to publish jobs to Google for jobs specifically. Jobiak’s AI-based machine learning platform leads to scan job posts, identifying the attributes required by the Google, and structures the Google tags.
- In May 2020, iCIMS inc., leading provider of cloud recruiting platform announced the acquisition of Opening.io that provides best in class artificial intelligence for talent, and the launch of iCIMS Talent logic. These acquisition and new launch will lead to deliver an advanced AI-solution for building transformative and diverse workforces at scale. The new iCIMS talent logic will provide customers with entirely new AI that will reshape the future of hiring.