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HR Tech’s AI Breakout
As AI systems have become smarter, faster, and cheaper, adoption has spread across new segments and verticals. Coding was one of the earliest and clearest applications, with legal, customer service, and medical scribing quickly following. As each use case gained traction, venture dollars flooded in to scale products and bring them to market.
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Agentic HR Tech is entering its breakout moment. Several companies in the space have raised $10M+ rounds in the past three months, suggesting that companies have found product market fit and are beginning to scale. Enterprise software startups are developing AI interviewers and coaches, autonomous candidate sourcing and outreach tools, and other self-directed HR capabilities. Marketplaces are developing AI-native workflows to drive faster and more efficient job matching, often serving the same AI labs whose models power their agentic features. Job-seeker applications are notably absent, despite many raising seed rounds.
What’s happening in HR Tech mirrors a broader shift in how and where value is being created in enterprise software. As Derek Xiao at Menlo Ventures explained, enterprise software has evolved through three eras: Storing data (systems of record),
