Artificial Intelligence (AI) is rapidly transforming human capital management practices across industries. Organizations are increasingly integrating AI technologies to enhance workforce strategies and HR operational efficiency. AI adoption has increased from 50% to 72% of organizations in 2024, with 65% of companies now regularly using generative AI – nearly double from just ten months ago. The impact on workforce efficiency is substantial, with organizations seeing up to 60-70% reduction in administrative work through AI automation. The transformation is driving significant investment, with 76% of leaders planning to increase their AI spending, though this represents a slight decrease from 85% in 2021. In terms of tangible benefits, companies are experiencing a 30% reduction in cost-per-hire through AI recruitment augmentation.
The market map below shows the disruptors for the HCM industry founded after 2020, based in the US and has received at least $3 million in funding. These companies leverage artificial intelligence to streamline employee integration and recruitment processes.
Stepmark Partners 