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IDC: China's AI-enhanced HCM market will reach 241 million in 2025, a year-on-year increase of 505.7%
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The Zhitong Finance App learned that the latest “China AI Enhanced Human Capital Management (HCM) Market Share (HCM) Market Share 2025” report released by the International Data Corporation (IDC) shows that in 2025, China's AI enhanced human capital management (AI-enable HCM) market size reached 241 million yuan, an increase of 505.7% over the previous year. As the digital construction of enterprises enters the deepening stage, AI is driving the evolution of human capital management systems from traditional management tools to intelligent talent management platforms.

IDC believes that the core value of AI-enabled HCM is not simply adding AI functionality, but rather integrating generation, recommendation, prediction, and intelligent capabilities into enterprise talent management processes to generate business value in scenarios such as recruitment, performance, learning and development, employee service, and workforce planning. Enterprise demand for HCM systems is shifting from improving process efficiency to optimizing talent decisions, enhancing organizational agility, and improving the employee experience.

Market pattern, leading manufacturers compete around intelligent scenarios, platforms and delivery capabilities

According to IDC data, the competitive pattern of China's AI-enhanced HCM market will gradually take shape in 2025. Among them, Beisen ranked first in the market with a revenue share of 12.8%, Yonyou Network ranked second with a revenue share of 10.3%, Kingdee ranked third with an 8.2% revenue share, and Lang Digital ranked fourth with a revenue share of 5.3%.

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Kitamori: Promoting the evolution of HCM into a platform for AI HR experts: IDC believes that Kitasen's leading position in the market comes not only from AI capacity building, but also from years of accumulated talent science, evaluation technology, job competency models, and industry practice experience. Through product capabilities such as AI interviewers, AI sparring, and AI leadership assessments, Kitasen is promoting the evolution of HCM from a traditional software system to an AI application platform for talent management scenarios.

Youyou Network: Supports the intelligent upgrading of large-scale organizations with enterprise-level platform capabilities: Youyou Network relies on BIP Human Cloud, YongPT and related agent capabilities to integrate AI into group control, business-finance and cross-system collaboration systems. IDC believes that user friends represent the development path of platform-based HCM vendors in the large group enterprise market, and their advantages are reflected in complex organizational management, enterprise data infrastructure, and large-scale delivery capabilities.

Golden Butterfly: Promoting the deep integration of HCM intelligence and enterprise management: Kingdee continues to promote intelligent upgrading around scenarios such as AI HR, intelligent recruitment, and job matching, and relies on cloud platform capabilities to strengthen the connection between HCM and enterprise management systems. IDC believes that Kingdee's strengths lie in enterprise cloud infrastructure, ecological capabilities, and the ability to extend AI capabilities to organizational management and talent development.

Wave Digital Enterprise: As the digital transformation of enterprises enters a deepening stage, improving organizational efficiency, accurately allocating talents, and optimizing employee experience have become important directions for enterprise management upgrading. The development of technologies such as generative AI, machine learning, and smart devices is driving the evolution of human capital management (HCM) from traditional process management tools to intelligent organizational management platforms. Enterprise demand for AI in the field of HCM has gradually increased from a single function efficiency to intelligent empowerment in core scenarios such as recruitment, talent development, employee service, performance management, and organizational decision-making.

AI-enhanced HCM moves towards the “platform+agent” stage

IDC believes that China's AI-enhanced HCM market is evolving from module intelligence to a “platform+smart” architecture. As generative AI and intelligent technology continue to mature, the HCM system will gradually extend from functions such as auxiliary Q&A and content generation to core processes such as recruitment, performance, talent development, and employee service, to achieve an upgrade from an “intelligent assistant” to a “process-based intelligence”. In the future, the competitive focus of manufacturers will no longer be limited to functional coverage, but will revolve around scenario understanding, data foundation, platform capabilities, and business implementation capabilities.

As enterprise AI applications enter the large-scale stage, customer demand for AI to enhance HCM will also shift from early technology testing to business value assessment, paying more attention to ROI, security compliance, data governance, and system integration capabilities. IDC believes that vendors with industry experience, platformization capabilities, and continuous delivery capabilities will have a better chance of forming a long-term advantage in market competition and promoting the evolution of HCM from traditional management tools to important infrastructure supporting the intelligent operation of organizations.

Xu Wenting, senior research manager of IDC's China enterprise application software market, believes that China's AI-enhanced human capital management market is moving from “superposition of AI functions” to a critical stage of “AI capabilities reshaping organizational management.” Currently, the demand for HCM intelligence is no longer limited to improving the efficiency of a single process. Instead, it is hoped that AI can go deep into core scenarios such as recruitment, talent development, employee service, performance management, and organizational decision-making to help enterprises achieve talent data insight, business process optimization, and organizational capacity improvement. In the future, as generative AI and intelligent technology become more mature, competition among HCM vendors will focus more on depth of scenario understanding, basic data and platform capabilities, intelligent orchestration capabilities, and large-scale delivery capabilities. Being able to combine AI capabilities with actual enterprise management processes and form vendors that can measure business value will have more opportunities to establish long-term advantages in market development.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.
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