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HR Automation Surges as Compan...To revolutionize hiring and HR processes, most U.S. and European companies are rapidly implementing smart HR tech.
In the U.S. and Europe, human resources is undergoing a significant transition as most companies are jumping to implement artificial intelligence (AI) to make and improve their hiring and HR processes. A new study shows that about 72% of businesses in the United States and Europe are using smart AI solutions for their HR operations.
An international IT recruiting agency is noticing that the whole process is getting a serious upgrade as AI-driven solutions are revolutionizing traditional HR processes, and it highlights a sharp acceleration in HR technology adoption. While an important AI implementation gap is visible, as 81% of U.S. workers are not using those solutions yet. In 2024, the AI adoption among HR professionals was 58%, and it increased to 72% in 2025; meanwhile, the individual worker usage of AI reveals a different statistic. With a booming rate of 16.24% CAGR, the U.S. market for HR tech was worth about $1.9 billion in 2024 and is set to jump to $8.6 billion by 2034. 93% of the companies save financial costs, and 60% of firms report revenue growth of 10% or more using AI tools.
The information services industry has the highest adoption rate (18.1%), followed by professional, scientific, and technical services (12.2%). Meanwhile the adoption rate is lowest in the farming and construction industries (1.4%). Resume screening, skills evaluation, benefits administration, and employee engagement tracking are among the frequently automated common services. 80% of US firms will incorporate smart technology into HR operations by 2025, with 57% expecting to use it specifically in recruitment and HR by the end of the year.