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The Business Research Company’s Artificial Intelligence (AI)-Powered Employee Recognition Analytics Global Market Report 2025 – Market Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, October 24, 2025 /EINPresswire.com/ -- Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market Growth Forecast: What To Expect By 2025?
There has been a significant growth in the market size of employee recognition analytics powered by artificial intelligence (AI), and it is expected to continue escalating from $1.30 billion in 2024 to $1.60 billion in 2025, representing a compound annual growth rate (CAGR) of 23.0%. This surge witnessed during the past period is primarily due to the heightened attention on enhancing employee engagement, increased realization about the significance of employee well-being, a stronger emphasis on employee satisfaction and happiness, an escalating demand for personalised recognition initiatives, and augmented employee anticipations for constant and substantial recognition.

The market size of the employee recognition analytics sector, fueled by artificial intelligence (AI), is projected to experience significant expansion in the upcoming years, amounting to $3.62 billion in 2029 with a compound annual growth rate (CAGR) of 22.6%. The expansion forecast during this period can be related to the increasing desire to mitigate employee exhaustion through positive reinforcement, the surge in remote and hybrid work arrangements, the escalating requirement for employee recognition in geographically scattered workforces, the focus on regular feedback over annual evaluations, and a rising interest in peer acknowledgment programs. Noteworthy trends during this forecast period encompass the incorporation of AI into HR systems, the application of real-time analytics, the advancement of machine learning algorithms, mobile availability, and the creation of data visualization tools.

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What Are Key Factors Driving The Demand In The Global Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market?
The increased focus on remote and hybrid working patterns is anticipated to boost the expansion of the artificial intelligence (AI) fuelled employee recognition analytics market in the future. Remote and hybrid work models denote work setups that provide flexibility for employees to either work completely remotely or divide their time between remote and physical workstations. The significance of these models is increasing due to employees' rising demands for a better work-life balance. Flexible work setups offer individuals the advantage of balancing personal and professional commitments more efficiently while also decreasing travel time. AI-driven employee recognition analytics prove advantageous for remote and hybrid work models as it provides data-based, prompt acknowledgment of employee accomplishments, regardless of their physical location. This helps in sustaining engagement, motivation, and a sense of unity within dispersed teams. For example, the Office for National Statistics, a UK government department, reported in February 2022 that 42% of employees opted for a work-from-home arrangement, showing an increase from 30% in April 2021. Consequently, the increasing focus on remote and hybrid work models is bolstering the growth of the AI-powered employee recognition analytics market.

Who Are The Leading Players In The Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market?
Major players in the Artificial Intelligence (AI)-Powered Employee Recognition Analytics Global Market Report 2025 include:
• Microsoft Corporation
• IBM Corporation
• Oracle Corporation
• SAP SE
• ADP Inc.
• Workday Inc.
• Ultimate Kronos Group Inc.
• Qualtrics LLC
• O.C. Tanner
• Cornerstone OnDemand Inc.

What Are Some Emerging Trends In The Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market?
Significant players in the AI-based employee recognition analytics market are concentrating on inventing sophisticated tools like machine learning to strengthen customization, improve on-the-spot responses, and provide deeper interpretation of employee performance and engagement. Machine learning contributions in AI-driven employee recognition analytics allow for tailored acknowledgment, instantaneous responses, and in-depth analyses of employee engagement and performance. For example, in May 2024, Qualtrics, an American management firm, rolled out enhanced AI-related innovations to its XM for Employee Experience suite. It uses machine learning to track attrition risks, condense feedback into actionable insights and recognize important behavioral prompts throughout an employee's journey. Piloted by Qualtrics AI and an expansive sentiment analysis database, the platform boosts employee involvement, retention, and effectiveness. It simplifies data analysis and provides predictive insights, allowing leaders to make quicker, more tactical decisions to back their teams. These features assist businesses in understanding employee requirements better and proactively responding to them leading to enhanced performance and increased employee loyalty.

Analysis Of Major Segments Driving The Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market Growth
The artificial intelligence (AI)-powered employee recognition analytics market covered in this report is segmented as
1) By Component: Software, Services
2) By Deployment Mode: On-Premises, Cloud
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Performance Management, Employee Recognition, Communication Or Collaboration, Surveys Or Feedback, Learning Or Development, Other Applications
5) By End-User: Banking, Financial Services And Insurance (BFSI), Healthcare, Information Technology And Telecommunications, Retail, Manufacturing, Education, Other End-Users

Subsegments:
1) By Software: On-premises Software, Cloud-based Software (SaaS)
2) By Services: Managed Services, Professional Services

View the full artificial intelligence (ai)-powered employee recognition analytics market report:
https://www.thebusinessresearchcompany.com/report/artificial-intelligence-ai-powered-employee-recognition-analytics-global-market-report

Which Region Is Expected To Lead The Artificial Intelligence (AI)-Powered Employee Recognition Analytics Market By 2025?
In the 2025 Global Market Report for AI-Powered Employee Recognition Analytics, North America led in size for the year 2024. The region projecting the most rapid growth in the forecast period is Asia-Pacific. The comprehensive report includes regions like Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

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