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HR Automation Surges as Compan...

HR TECH

HR Automation Surges as Companies Embrace Smart Hiring Tools

HR Automation Surges as Companies Embrace Smart Hiring Tools
The Silicon Review
12 June, 2025

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.

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