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Industry Landscape
The HR Tech industry is experiencing rapid growth, driven by digital transformation and the increasing adoption of AI and automation. Companies are seeking solutions to improve efficiency, enhance employee experience, and gain data-driven insights. Specialization, like AI-assisted recruiting, is a key trend. Despite economic uncertainties, investment in HR technology remains strong as businesses prioritize talent management.
Total Assets Under Management (AUM)
Global Human Resources Software Market Size in United States
~Approximately 12.5 billion USD (2023 for US market segment, based on global reports)
(13.6% CAGR)
This growth is driven by:
- Increased adoption of cloud-based HR solutions.
- Growing demand for integrated HR platforms.
- Rise of AI and automation in HR processes.
Total Addressable Market
12.5 billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Generative AI for Personalized Candidate Engagement
Generative AI can create highly personalized and dynamic communication with candidates, from initial outreach to interview preparation, significantly enhancing candidate experience and reducing recruiter workload.
Ethical AI and Bias Detection/Mitigation
Advanced AI models focused on proactively identifying and mitigating algorithmic bias in screening and scoring will become critical for ensuring fairness and legal compliance in hiring.
Explainable AI (XAI) in Hiring Decisions
XAI will provide transparency into how AI reaches its recommendations in recruitment, building trust and allowing HR professionals to understand the rationale behind candidate rankings.
Impactful Policy Frameworks
NYC Local Law 144 (2023)
This law, effective July 5, 2023, regulates the use of automated employment decision tools (AEDTs) by requiring bias audits, public notice of AEDT use, and certain disclosure requirements.
It mandates that SquarePeg conduct regular bias audits on its AI screening algorithms and provide transparency to NYC-based clients and candidates.
EEOC AI and Algorithms Initiative (Ongoing)
The U.S. Equal Employment Opportunity Commission (EEOC) has launched an initiative to ensure that the use of AI and algorithmic tools in employment decisions complies with federal civil rights laws.
This initiative will require SquarePeg to continuously monitor and validate its AI tools to ensure non-discriminatory outcomes and adapt to evolving EEOC guidance.
California Privacy Rights Act (CPRA) (2023)
Effective January 1, 2023, CPRA expands upon the California Consumer Privacy Act (CCPA) by providing consumers with more rights regarding their personal data, including data used in employment contexts.
SquarePeg must enhance its data privacy and security measures, provide clear data handling disclosures, and manage data subject access requests more rigorously for California-based candidates and clients.
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