Recent HR Software Acquisitions Point to More AI-Focused Future

As more organizations search for solutions to incorporate artificial intelligence (AI) and other advanced digital tools into their human capital processes, several recent software company acquisitions will most likely affect how HR and total rewards professionals perform their duties.

From recruitment to compensation, this article explores how these new tech industry shakeups are shaping the future of work and what they mean for your workflow.

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What’s the Total Rewards Impact from Recent HR Tech Shakeups?

‘Uniting the Entire Compensation Journey’

In September, compensation software and data company Payscale announced the acquisition of Datapeople, an AI recruiting platform.

The acquisition brings together recruitment and compensation, while embedding pay transparency compliance, since Datapeople’s technology streamlines job postings and incorporates applicable laws, said Ruth Thomas, Payscale’s senior vice president of marketing.

“Talent acquisition and compensation have been operating in silos, creating a disjointed experience that doesn’t emphasize the value of strategic hiring,” she said. “Payscale’s acquisition of Datapeople changes this by connecting the two functions, uniting the entire compensation journey and showing strategic impact for the business.”

Due to the rise of pay transparency policies and legislation, talent acquisition and compensation are becoming more intertwined, Thomas said, requiring closer alignment between benchmarking data and public pay ranges in job postings.

“To win top talent today, you need competitive, equitable compensation packages that build trust from day one,” she said. The acquisition aims to “create a seamless candidate experience while safeguarding compliance, equity and fairness — transforming compensation into a lever that drives both organizational success and individual growth.”

“HR platforms are becoming more holistic and predictive to help leaders not only manage compliance but anticipate talent needs, model compensation strategies and continuously update benchmarks based on real-time data.”

— Ruth Thomas, senior VP of marketing, Payscale

‘A Different Approach Than Traditional Corporate Hiring’

Also in September, talent acquisition software provider iCIMS acquired Apli, an AI-powered recruiting company. Apli uses “advanced conversational AI” to support companies with talent attraction and the process of evaluating and hiring new employees — with a focus on frontline workers, who iCIMS noted make up about 80% of the global workforce.

“Seasonal spikes, high turnover and the need to quickly ramp staff in industries like retail, hospitality and healthcare require a different approach than traditional corporate hiring,” an iCIMS spokesperson told Workspan Daily. “Our acquisition of Apli accelerates our AI road map and enables us to deliver AI-powered capabilities for high-volume frontline hiring more quickly and brings additional data science and AI engineering talent to our rapidly growing AI teams.”

iCIMS shared that the organization’s Frontline AI tool, powered by Apli, will offer conversational tools for job searches and applications — accessible to candidates via text, WhatsApp or web — and incorporate predictive candidate-screening assessments. Its AI-powered candidate-scoring process keeps recruiters and managers in the loop regarding all applicants.

“While the focus is on frontline roles today, the tools and experiences that support high-volume hiring — such as automation and simplified workflows — can also extend to other critical use cases,” the iCIMS spokesperson explained. “For example, opening a new offshore facility or rapidly building a skilled team for a new project requires the same efficiency and scale. Our Frontline AI will address these varied hiring needs, creating a more complete solution for high-volume and enterprise hiring.”

‘More Engaging Way to Connect with Candidates’

Workday, a human capital management and analytics software company, announced several acquisitions in August and September: AI agent development platform Flowise, candidate experience agent Paradox, and AI knowledge and learning platform Sana.

“Making AI agent development reliable and accessible is a major technical challenge,” Peter Bailis, Workday’s chief technology officer, said in a news release.

With these acquisitions, Bailis said Workday can help streamline organizational workflows by bringing together various sources and platforms, creating assets, and automating tasks. The tools also bolster employee experience and productivity for all types of roles — for instance, by helping hiring managers automate aspects of the performance review process and implement real-time improvements to onboarding.

“Hiring is one of the most critical moments in the employee experience, yet too often, it’s slowed down by outdated processes and disconnected tools,” Gerrit Kazmaier, Workday’s president of product and technology, shared in an announcement. “By bringing [these platforms] into Workday, we’re giving organizations a smarter, faster and more engaging way to connect with candidates.”

‘Attract and Hire Top talent with Greater Speed, Agility and Efficiency’

In August, SAP, a multinational software company based in Germany, completed its acquisition of SmartRecruiters, a recruiting company that provides an AI-powered hiring platform.

The acquisition represents a transformative step in SAP’s mission to redefine talent acquisition, said Dan Beck, the general manager and chief product officer at SAP SuccessFactors.

“By bringing SmartRecruiters into the SAP SuccessFactors human capital management suite, we’re empowering our customers to attract and hire top talent with greater speed, agility and efficiency, while lowering their total cost of ownership,” he said.

SmartRecruiters’ recruiting platform will now be part of a unified experience that spans the entire talent journey, Beck said, from sourcing and hiring to onboarding and beyond.

“This integration enhances our capabilities in high-volume hiring, recruitment automation and AI-powered candidate engagement,” he said. “Organizations demand platforms that can adapt to changing workforce dynamics, deliver personalized candidate experiences and provide actionable insights. This acquisition underscores the industry’s evolution toward intelligent, outcome-focused HR solutions that empower both employers and employees.”

“We’re entering an era of super workers, where AI augments human potential and enables professionals to achieve more.”

— Dan Beck, general manager and chief product officer, SAP SuccessFactors

What Does This All Mean for HR Tech?

These acquisitions highlight the increased pressure on organizations to maintain efficient operations and streamline their HR processes, while upholding compliance and meeting worker demands for greater transparency and pay equity, Payscale’s Thomas said. For instance, Payscale also recently announced a partnership with pay equity and regulatory compliance software company Trusaic, to better equip organizations with the tools needed to safeguard international pay transparency and pay equity compliance.

These ongoing changes mean organizations will continue to work to transform HR tech moving forward, not only to increase efficiency but to unify as many HR processes as possible — only if these digital tools, such as AI, are trained with accurate and complete data and regularly assessed.

“AI tools that simplify workflows, reduce bias and provide actionable insights for employers are becoming essential,” Thomas said. “As a result, HR platforms are becoming more holistic and predictive to help leaders not only manage compliance but anticipate talent needs, model compensation strategies and continuously update benchmarks based on real-time data.”

Therefore, upskilling and reskilling will be essential, SAP’s Beck said.

“As these tools become more sophisticated, HR professionals will need to build new competencies in data interpretation, AI ethics and digital strategy,” he said. “We’re entering an era of super workers, where AI augments human potential and enables professionals to achieve more.”

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