Strategy

The 6 highest-valued HR startups that are using AI to help companies like Deloitte and Disney make hiring more efficient and fair, including by reducing unconscious bias

By Allana Akhtar
hirevue start screen
HireVue creates AI to screen job applicants. HireVue
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Most job applicants learn quickly that a robot will likely read their resume before reaching any human.

Lesser known are the companies that build this type of hiring AI software. These startups build tech that analyzes tens of thousands of data points to target and recruit the best job applicants, all while claiming to save their clients time and money.

Business Insider analyzed the AI recruiting startups with the greatest amount of total funding on Crunchbase. We excluded companies based outside the US.

HireVue, the world's most valuable recruiting AI startup, has raised more than $90 million in VC funding since 2004. 

Many companies that build AI for hiring claim their tech reduces bias, but experts warn algorithms can exacerbate existing racial and gender disparities. 

Here are the 6 most valuable AI recruiting startups — and how much they're worth.

1. HireVue has raised more than $90 million in VC funding since it was founded in 2004.

hirevue start screen
HireVue

Total funding amount: $93 million

Headquarters: South Jordan, Utah

Clients: More than a third of the Fortune 100, including Hilton, Goldman Sachs, and Intel

Description: HireVue makes a video and AI software that screens job candidates based on 25,000 data points, such as body language, word choice, and whether or not they smile. The company says its software cuts the time required to hire a candidate by 90%.

Sources: HireVue.com, Business Insider

2. AllyO claims it can cut hiring costs by 60%.

AllyO
AllyO/YouTube

Total funding amount: $64 million

Headquarters: Palo Alto, California

Clients: AllyO claims it works with 15% of the Fortune 50, including Staples, Avis, and Marathon

Description: AllyO uses AI to automate parts of the recruiting process such as scheduling in Outlook and sending email check-ins to candidates. Additionally, the algorithm integrates with job boards and referral sites like LinkedIn and Monster, as well as social media, to identify qualified applicants. The company claims it can cut the cost of hiring by 60%.

Sources: AllyO.com, VentureBeat

3. Pymetrics has raised $56 million for AI that aims to fight unconscious bias.

Pymetrics Co-Founder and CEO Dr. Frida Polli
Pymetrics Co-Founder and CEO Dr. Frida Polli Steve Jennings/Getty Images for TechCrunch

Total funding amount: $56.63 million

Headquarters: New York City

Clients: Accenture, Unilever

Description: Pymetrics uses brain games and AI to reduce bias in the hiring process. The algorithms measure 70 inherent cognitive and emotional traits, like the ability to focus and attention to detail, instead of using data points like a candidate's gender or college.

Sources: Business Insider, Pymetrics.com

4. Eightfold, founded by Facebook and Google veterans, has raised over $50 million so far.

eightfold ai
Eightfold/YouTube

Total funding amount: $51.75 million

Headquarters: Mountain View, California

Clients: Hulu, Postmates, Twilio

Description: Eightfold's algorithm first creates a company's "ideal workforce" for a client, based on publicly available data, that would put it in position to reach growth or revenue goals. The algorithm then measures the client's current workforce against this "ideal" to determine which roles should be hired next.

Sources: TechCrunch, Eightfold.ai

5. Mya Systems is a conversational AI that can chat with prospective job applicants.

Mya Systems
Mya Systems

Total funding amount: $32.4 million

Headquarters: San Francisco, California

Clients: Adecco, L'Oreal, Deloitte, AB InBev

Description: Mya is a conversational AI recruiter that gathers candidate insights during job interviews, and aids with talent outreach. Its platform employs a dataset gleaned from millions of conversations with the goal of automating companies' engagement with hiring candidates.

Sources: Mya.com

6. PandoLogic's algorithm helps clients with their job advertisements.

PandoLogic
PandoLogic

Total funding amount: $22.7 million

Headquarters: New York City

Clients: PandoLogic has reached "over 125,000 employers and more than 700 digital publishers," according to its LinkedIn page.

Description: PandoLogic's algorithm helps with job advertising. The AI analyzes jobs and skills needed to target websites and candidates best suited for the specific gig. The company also uses machine learning to analyze which job ads are clicking with specific demographics and targeting to high click-rate areas.

Sources: HR Drive, LinkedIn

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Allana Akhtar
Allana Akhtar
Allana Akhtar was a senior health reporter for Insider, where she covers the emerging wellness industry and general health topics. During the COVID-19 pandemic, Allana wrote extensively about nurses, mask mandates, the vaccine rollout, and disparities in access to health. Her articles include features on nurses needing to re-use PPE in the early days of the pandemic, ones who struggled to get paid time off after getting COVID-19, and those who left bedside care after grueling pandemic working conditions. Allana also spoke to flight attendants and retail workers who faced violence as they enforced mask mandates, and community health workers who said they struggled to receive equitable vaccine access during the initial rollout. Allana now reports on emerging trends within the wellness industry, including the Westernization of indigenous medicine and dangerous wellness trends spread through social media. She also writes about plastic surgery, racial disparities in healthcare, and breaking health news. Allana has won numerous awards for her work, including the Best News Story by the Michigan Press Association in 2015, Best Reporter Covering Nurses in 2019, and the Morris and Lola Wasserstein Award for her contribution to the the University of Michigan's student paper as an Honors student. Before Insider, Allana wrote for USA TODAY, US News & World Report, Money Magazine, Health Magazine, Jalopnik, and more. You can email her at aakhtar@bjinnox.com, call/text her at (646) 376-6058, or follow her on Instagram, TikTok, Twitter, and LinkedIn. Secure tips line: Signal # 248 760 0208'We're grossly unprepared': Nurses share their frustration as the coronavirus spreads with little direction from the government or hospitals on how to mitigate it'Sexy nurse' costumes demean one of the most in-demand professions in American life — and they're a bestseller on Amazon right nowFlight attendants describe 'unprecedented' violence as travel returns and passenger aggression soarsG/O Media fired a queer employee of color who wore crop tops, shorts, and heels to work, violating a brand-new dress code that others say they routinely violated without being punishedContractors at controversial startup Rev say they worked long hours for little pay, feared they could lose their job at any time, and had to transcribe interviews with sexual-abuse survivors without warning
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