Generative Artificial Intelligence (AI) In Human Resources (HR) Market In 2029
Generative Artificial Intelligence (AI) In Human Resources (HR) Market Size
Generative Artificial Intelligence (AI) In Human Resources (HR) Market Trends
Generative Artificial Intelligence (AI) In Human Resources (HR) Market Forecast
The Business Research Company’s Generative Artificial Intelligence (AI) In Human Resources (HR) Global Market Report 2025 - Size, Trends, And Forecast To 2034
LONDON, GREATER LONDON, UNITED KINGDOM, December 31, 2025 /EINPresswire.com/ -- Generative Artificial Intelligence (AI) In Human Resources (HR) Market to Surpass $1 billion in 2029. Within the broader Information Technology industry, which is expected to be $12,711 billion by 2029, the Generative Artificial Intelligence (AI) In Human Resources (HR) market is estimated to account for nearly 0.7% of the total market value.
Which Will Be the Biggest Region in the Generative Artificial Intelligence (AI) In Human Resources (HR) Market in 2029
North America will be the largest region in the generative artificial intelligence (AI) in human resources (HR) market in 2029, valued at $536 million. The market is expected to grow from $254 million in 2024 at a compound annual growth rate (CAGR) of 16%. The rapid growth can be attributed to the rising demand for cloud computing and rising remote and hybrid work models.
Which Will Be The Largest Country In The Global Generative Artificial Intelligence (AI) In Human Resources (HR) Market In 2029?
The USA will be the largest country in the generative artificial intelligence (AI) in human resources (HR) market in 2029, valued at $485 million. The market is expected to grow from $227 million in 2024 at a compound annual growth rate (CAGR) of 16%. The rapid growth can be attributed to the increasing uses of cloud computing, adoption of AI enterprise software and focus on product launches.
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What will be Largest Segment in the Generative Artificial Intelligence (AI) In Human Resources (HR) Market in 2029?
The generative artificial intelligence (AI) in human resources (HR) market is segmented by technology into machine learning, natural language processing, deep learning, computer vision and robotic process automation. The machine learning market will be the largest segment of the generative artificial intelligence (AI) in human resources (HR) market segmented by technology, accounting for 71% or $713 million of the total in 2029. The machine learning market will be supported by growing need for data-driven decision-making in HR processes, increasing volumes of HR data requiring analysis and insights, the ability to predict employee turnover and retention patterns, rising demand for personalized employee engagement strategies, enhanced talent acquisition using predictive analytics, growing application of automated performance reviews and the increasing integration of advanced algorithms for workforce planning.
The generative artificial intelligence (AI) in human resources (HR) market is segmented by deployment mode into cloud-based and on-premises. The cloud-based market will be the largest segment of the generative artificial intelligence (AI) in human resources (HR) market segmented by deployment mode, accounting for 99% or $987 million of the total in 2029. The cloud-based market will be supported by its scalability and flexibility for HR teams of all sizes, growing need for remote workforce support and collaboration, reduced IT infrastructure and maintenance costs, ease of integration with other cloud-based HR applications, enhanced security features to protect sensitive employee data, ability to access real-time HR insights from anywhere and growing adoption of hybrid work models that leverage cloud infrastructure.
The generative artificial intelligence (AI) in human resources (HR) market is segmented by application into recruiting and hiring, onboarding, performance management, improved efficiency and other applications. The recruiting and hiring market will be the largest segment of the generative artificial intelligence (AI) in human resources (HR) market segmented by application, accounting for 40% or $400 million of the total in 2029. The recruiting and hiring market will be supported by increasing demand for AI-powered candidate screening and ranking, ability to identify the best-fit candidates from large talent pools, growing use of generative AI to create engaging job descriptions and postings, enhanced interview scheduling and coordination through automation, improved diversity and inclusion efforts through unbiased AI assessments, integration of generative AI with applicant tracking systems and rising adoption of predictive analytics to reduce hiring time and costs.
What is the expected CAGR for the Generative Artificial Intelligence (AI) In Human Resources (HR) Market leading up to 2029?
The expected CAGR for the generative artificial intelligence (AI) in human resources (HR) market leading up to 2029 is 16%.
What Will Be The Growth Driving Factors In The Global Generative Artificial Intelligence (AI) In Human Resources (HR) Market In The Forecast Period?
The rapid growth of the global generative artificial intelligence (AI) in human resources (HR) market leading up to 2029 will be driven by the following key factors that are expected to reshape workforce management, talent optimization, and organizational efficiency worldwide.
Rising Adoption Of AI In Enterprise Software - The rising adoption of AI in enterprise software will become a key driver of growth in the generative artificial intelligence (AI) in human resources (HR) market by 2029. The adoption of AI in enterprise software enhances generative AI applications in HR by integrating intelligent automation into core HR systems, such as applicant tracking and performance management platforms. This enables HR teams to streamline workflows, generate personalized content and make data-driven decisions more efficiently. As a result, the rising adoption of AI in enterprise software is anticipated to contributing to a 1.2% annual growth in the market.
Rising Popularity Of Remote And Hybrid Work - The rising popularity of remote and hybrid work will emerge as a major factor driving the expansion of the generative artificial intelligence (AI) in human resources (HR) market by 2029. Generative AI in HR supports remote and hybrid work by automating tasks such as drafting job descriptions, onboarding materials and personalized employee communications. It also enhances employee engagement and performance management by generating insights from communication patterns and feedback, enabling more responsive and adaptive HR strategies. Consequently, the rising popularity of remote and hybrid work capabilities is projected to contributing to a 1.0% annual growth in the market.
Growth Of Cloud Computing- The growth of cloud computing within digital manufacturing processes will serve as a key growth catalyst for the generative artificial intelligence (AI) in human resources (HR) market by 2029. Cloud computing plays a crucial role in enabling generative artificial intelligence (AI) in human resources (HR) by providing scalable infrastructure, storage and computing power necessary to process large volumes of HR data in real time. It allows seamless integration of AI tools into existing HR platforms, enabling functions like automated content generation, personalized employee experiences and real-time analytics without heavy on-premises investments. This flexibility accelerates innovation and enhances the accessibility and efficiency of AI-driven HR solutions. Therefore, this growth of cloud computing across digital manufacturing operations is projected to supporting to a 0.5% annual growth in the market.
Favorable Government Initiatives - The favorable government initiatives will become a significant driver contributing to the growth of the generative artificial intelligence (AI) in human resources (HR) market by 2029. Favorable government initiatives, such as funding for AI research, supportive regulations and policies promoting digital transformation, accelerate the adoption of generative AI in HR by reducing barriers and encouraging innovation. These initiatives help create a trusted environment for deploying AI-powered HR solutions, ensuring compliance with data privacy and ethical standards while boosting market confidence. Consequently, the favorable government initiatives strategies is projected to contributing to a 0.3% annual growth in the market.
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What Are The Key Growth Opportunities In The Generative Artificial Intelligence (AI) In Human Resources (HR) Market in 2029?
The most significant growth opportunities are anticipated in the cloud-based generative AI in human resources (HR) market, the machine learning based generative AI in human resources market, and the generative AI in human resource recruiting market. Collectively, these segments are projected to contribute over $1 billion in market value by 2029, driven by rising adoption of AI-powered automation, increasing demand for data-driven decision-making in workforce management, and the growing need for intelligent talent acquisition and employee engagement solutions. This surge reflects the rapid integration of generative AI technologies that streamline HR workflows, enhance predictive insights, and elevate operational efficiency, fueling transformative growth within the broader AI-enabled human resources ecosystem.
The cloud-based generative AI in human resources (HR) market is projected to grow by $546 million, the generative AI and machine learning in human resources market by $365 million, and the generative AI in human resource recruiting market by $199 million over the next five years from 2024 to 2029.
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