Another prediction of growth for the market for generative AI in HR. The latest report predicts the market will grow from $413 million in 2022 to $1.66 billion in 2032, with a CAGR of 15.4%.
MarketResearch.Biz said generative AI’s ability to help automate a number of time-consuming and labor-intensive processes that are involved with recruiting and managing a workforce has made the technology popular within the HR sector.
By application, recruiting and hiring dominates HR’s use of AI, the firm’s report said. In terms of deployment, the Cloud-based segment leads the market, holding 68% of it. Machine learning represents the largest portion of the technology segment. Looking at geography, North America dominates with the highest revenue share, 47%. Among all regions, APAC is expected to see the highest CAGR.
The Market’s Drivers
Several factors drive the market’s growth, MarketResearch.Biz said. Its technology is advancing quickly, for example, as solutions become more complex in helping employers do things like hire talent, foster employee engagement and optimize the workforce.
At the same time, the use of automation is increasing as HR attempts to improve efficiency and accuracy. Automating processes like resume screening, candidate matching and interview scheduling can be done with generative AI solutions.
HR departments are also seeking ways to provide employees experiences that are more individualized. The creation of customized information – such as job descriptions, training materials and performance evaluations – can be assisted by generative AI.
In addition, AI systems help employers address DEI concerns by assisting efforts to remove bias from hiring decisions and job descriptions. Finally, employers are attracted by AI’s ability to lower training expenses and ensure compliance with labor rules and regulations.
Recently, Visier launched a generative AI-based digital assistant to allow simple conversational access to Visier People. Meanwhile, Paycor released an AI-generated job descriptions tool that’s meant to “optimize” talent acquisition by sourcing qualified, diverse candidates. Fountain acquired the resources of Clevy, a provider of conversational AI technologies, to streamline the hiring of hourly workers.