The global labor market is congested with millions of job seekers chasing few jobs. Any uploaded job vacancy gets filled with thousands of applications within hours. Artificial Intelligence (AI) has removed that burden from recruiters and made workflow more manageable and seamless.
According to AI statistics for 2024, over 77% of companies use or explore AI software in one area or another. Companies utilize AI in various ways, from automating manual processes to predicting and fulfilling customer demand and recruitment processes.
In this article, discover the use of AI in hiring, its benefits, the number of companies that use AI, and the future of AI in recruitment in 2024. Read on.
- As of July 2024, about 26% of small businesses use AI tools in recruitment.
- More than 57% of B2B marketers understand their audience more using AI chatbots as of 2024.
- Recruiters using AI reported a 75% reduction in the cost per screening of candidates.
- 20% of black Americans think AI recruitment will worsen racial bias.
- 79% of recruiters believe AI will make hiring and firing decisions soon.
How Many Companies Use AI in Hiring?
As of July 2024, about 88% of companies globally utilize AI technology for recruitment. This continuous increase in the adoption of AI software has spurred its global market size from $540.4 million in 2022 to a projected increase of about $590.5 million by the end of 2024.
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Using AI chatbots during recruitment significantly benefits recruiters and companies by improving hiring quality and reducing costs. Additionally, AI recruiting makes it easier to do candidate searches and avoid human bias.
In the following sections, the latest data will prove how beneficial AI is in the recruitment process, the opinions of recruiters and companies on AI in the hiring process, its growing market size, and the future of AI in recruitment.
Which Companies Are Using AI for Recruitment in 2024?
Over 95% of recruiters believe that AI is highly beneficial in the application process. These are the companies that use AI technology in their hiring processes:
- IBM Watson Talent
- Procter and Gamble (P&G)
The ability of AI to automate the screening of job seekers, save time, and reduce costs contributed to the growth of AI recruitment. As a result, organizations and businesses are now adopting AI technology in their operations.
Read on to discover the current statistics on the number of companies using AI tools in their hiring process in 2024.
1. As of July 2024, about 26% of small businesses use AI tools in recruitment.
(FOX Business, Influencer Marketing Hub)
61.4% of marketers of small businesses have used AI tools in their marketing campaigns. AI technology enhances their creativity and gets them closer to their target audiences, thus increasing their sales volume.
At the same time, nearly 26% of small businesses reported using AI to assist with daily tasks. This includes the recruitment process, which helps small businesses save time and money.
2. Over 88% of companies worldwide have utilized AI technology in HR processes, including recruitment.
(Mercer 2, The Guardian)
AI technology is widely used by 88% of firms for its benefits in recruitment. AI's ability to provide applicants with feedback after application evaluations is extremely beneficial to both firms and recruiters.
The feedback given to applicants could also improve their chances by writing an ATS-friendly resume. AI can also reduce human bias in hiring by streamlining and standardizing the hiring process.
3. More than 57% of B2B marketers understand their audience more using AI chatbots as of 2024.
(Fit Small Business)
Over 57% of business-to-business (B2B) marketers used chatbots to understand their audience's needs and preferences better. 55% use AI chatbots to generate new leads, while 43% use the software to educate prospects.
4. Recruiters using AI reported a 75% reduction in the cost per screening of candidates.
(Select Software Reviews)
About 74% of hiring professionals hope to see repetitive tasks automated by integrating AI into the recruitment process so they can prioritize more strategic HR work.
Recruiters could now filter about 80% of the candidate pool using data points with AI tools. It helps to identify the most likely successful candidates. This approach saved 75% of time and cost, enabling companies to hire the largest and most diverse candidates quickly.
5. About 86.1% of recruiters believe using the ATS machine speeds recruitment.
The Applicant Tracking System (ATS) handles vast quantities of applicants’ data, helping recruiters sieve through hundreds of applications. It sorts out the candidates based on job qualifications, alleviating the human resource team's workload and speeding up the application process.
6. AI can improve productivity by 40% in the workplace as of 2024.
(Business Focus Magazine)
AI technology, like chatbots, can improve the productivity of recruiters by 40% by automating repetitive tasks, optimizing workflows, and providing actionable prompts. These tools can simplify processes and provide efficiency in carrying out business tasks. AI chatbots can improve efficiency by handling general queries, allowing human customer service agents to focus on complex issues.
7. Approaching $400 million, China will lead the AI recruitment in the Asia-Pacific region in 2024.
The Asia-Pacific region will dominate the AI recruitment market in 2024, with China leading the way with revenues close to $400 million. North America comes in second with revenues of $323.2 million.
In 2022, the Asia-Pacific region saw a reduction in recruitment costs of 25%, then 36% in North America. This is because AI recruitment leader China had already made substantial cost savings in prior years.
8. 20% of black Americans think AI recruitment will worsen racial bias.
The majority of all ethnicities surveyed believe AI recruitment will reduce instances of human bias. However, 20% of black respondents think it will make things worse. Contrary to this opinion, 64% of Asian Americans believe AI will help reduce racial bias.
Some think that the racial and gender biases and prejudices of the programmer will be quietly passed on to the AI despite the hiring company’s neutral expectations. A Hispanic man in his 40s said that AI is not a savior of equality but a mask to embed the racism and sexism that already exists.
9. About 35% of recruiters are worried that AI may overlook unique and unconventional talents.
Although there are benefits to adopting AI in hiring, 35% of recruiters think that using AI could destroy the HR industry. According to recruiters, diversity has made it hard for everyone to fit the typical candidate mold.
AI might not be able to use human judgment despite being better at filtering vast numbers of candidates. As a result, excellent but unconventional talent might slip due to the programming of the software.
10. About 79% of recruiters believe AI will make hiring and firing decisions soon.
According to survey data from over 10,000 recruiters, 79% think AI technology will advance. It will reach a level that doesn't just screen candidates and will hire and fire employees with little human input.
11. At least 73% of companies are investing in recruitment automation.
In 2021, approximately 67% of companies invested in recruitment automation. The benefits of Artificial Intelligence tools in companies and businesses made more companies investing in AI as of 2024 to 73%. It is a 9% increase in just 2 years. If AI investment continues to grow at the same rate, nearly all companies will invest in recruitment automation by 2025.
12. Enterprise businesses spend the most on AI recruitment.
Big enterprises and corporations allocate a higher budget on AI recruitment than other small and medium businesses.
The table shows that the amount businesses spend on AI recruitment varies according to each organization's capital base and capacity.
The use of AI in the recruitment process of companies shows that technology can help make hiring more efficient. AI can help companies save time and have cost-saving benefits. However, a disadvantage of AI is the probability of overlooking unconventional talents when reviewing applications.
Recruiters and companies must balance the human element and use advanced technology like AI during selection and hiring.
FAQs on How Many Companies Use AI in Hiring
What is the future of AI in recruiting?
With a CAGR of 6%, the AI market is projected to grow from $590.5 million to over $940 million between 2024 and 2030.
What percentage of Fortune 500 companies use AI?
About 99% of all Fortune companies are now using AI. These companies used AI in many ways, including screening candidates in different hiring stage processes.
How is AI used in recruitment?
AI is used in recruitment by analyzing job descriptions and providing suggestions to help recruiters create more inclusive and effective job postings.