AI agents are set to explode: Reports forecast 45% annual growth rate

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Jill Barth
Jill Barthhttps://www.hrexecutive.com/
Jill Barth is HR Tech Editor of HR Executive. She is an award-winning journalist with bylines in Forbes, USA Today and other international publications. With a background in communications, media, B2B ecommerce and the workplace, she also served as a consultant with Gallagher Benefit Services for nearly a decade. Reach out at [email protected].

AI agents are taking the tech mainstage, but what does this mean for HR leaders?

At the recent HR Executive and Future Talent Council event at Bentley University near Boston, I talked with Top 100 HR Tech Influencer Joey Price about what he’s hearing from HR leaders. Price is president and CEO of Jumpstart HR and executive analyst at Aspect43, Jumpstart HR’s HR‑tech research division, and author of a valuable new book, The Power of HR: How to Make an Organizational Impact as a People‑Professional.

This puts him solidly at the center of HR’s most relevant conversations. Price described the curiosity he’s hearing from many HR leaders about AI agents, which have become increasingly prominent in recent months.

AI agents: (Another) new era

Joey Price
Joey Price, 2025 Top 100 HR Tech Influencer

Simply put, AI agents are emerging to reshape business processes by integrating siloed workflows and eliminating unnecessary steps across organizational boundaries.

AI agents mark a new era in artificial intelligence, going far beyond traditional software, according to Boston Consulting Group (BCG) researchers. Unlike static tools, these autonomous systems can analyze data, plan tasks, take action and adapt—often in real time.

For many organizations—including our nation’s biggest employer, the U.S. government—these tools can’t come soon enough. A new report from Workday reveals that outdated federal HR systems cost taxpayers nearly $1 billion in lost productivity each year.

The report also found that 89% of federal HR leaders believe these outdated systems severely limit their agencies’ performance and that more than 60% of their processes could be at least partially automated.

Read more: HR tech in 2025 will be all about the agents, says Josh Bersin

Credit: Boston Consulting Group

At HR Tech 2024, keynote speaker Josh Bersin predicted that agents will be introduced and integrated across nearly all HR systems. “It’s a huge transition in the market,” he said. “All AI systems are going to start talking to each other, and you’ll be able to conduct transitions in core systems and across systems.”

The topic will also take center stage this fall at the HR Tech conference, where IBM CHRO and 2024 HR Executive of the Year Nickle LaMoreaux will deliver the opening keynote, titled “HR Agents: Myths, Mayhem and Monumental Moments.”

Bersin’s firm has introduced its own agentic AI tool, as have major HR tech players such as Workday, Oracle, SAP SuccessFactors, UKG, ADP, ServiceNow and more. “This is going to be a really interesting war for agents,” noted Bersin.

Agents show promise all across the HR and employee experience tech stack. BCG researchers say AI agents are rapidly expanding across business applications, with the market projected to grow 45% annually over the next five years.

Read more: How HR can propel AI agent implementation forward

BCG researchers note that supervising virtual AI agents will become a key team skill, ensuring they meet goals while upholding privacy, fairness and ethical standards. This will put HR leaders at the heart of the outcome-driven implementation of these new tools.

According to a recent report from BCG, “The more AI agents proliferate, the greater the need to manage them by employees—and this puts a premium on training employees in responsible AI at every level of the organization.”

HR tech in the news

ServiceNow launched ServiceNow University with the expectation that AI will disrupt millions of jobs beyond IT. The free, gamified platform offers personalized, on-demand learning and AI-focused content to help organizations future-proof talent.

Accounts platform Melio and HR solution Gusto are partnering to streamline payments for businesses. Gusto joins others leveraging Melio’s embedded solution for flexible, automated financial management and growth-focused services.

AcquireROI, provider of performance-driven talent acquisition, has secured a growth loan from Decathlon Capital Partners. The funding will support team expansion, enhanced customer service, and rising nationwide demand.

Talent insight provider SHL has launched a solution to help organizations redeploy talent, close skill gaps and reduce layoffs. Using AI, predictive analytics, and skills data, it offers HR leaders a data-driven view of employee potential.

Communication solution TechSmith has formed a Training Advisory Board to strengthen its enterprise learning offerings. Including experts in HR tech and corporate training, the board will help orgs create scalable digital training content.

Talent optimization platform The Predictive Index announced an integration with HCM platform Paylocity, combining behavioral science with HR tools to streamline hiring, support compliance and enhance data-driven decisions.

Employee experience platform MangoApps has launched upgrades in AI assistants, internal communication and frontline enablement. This marks the first of four major releases planned for 2025, enhancing EX across these areas.

Remote has expanded its payroll infrastructure to support over 100 countries, offering a unified system for payroll, HR, benefits and compliance. This integration helps businesses scale globally, reducing risks associated with relying on multiple vendors.

Global workforce platform Beeline announced strong growth for Beeline Professional, its solution for managing global extended workforces. Designed for mid-market companies and emerging contingent programs to manage professional and project-based talent.

Deel has partnered with Versori as an official systems integrator for global teams. This collaboration enables Deel’s customers to connect their existing tools with Deel’s workforce management solution.

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