SAP to Acquire SmartRecruiters to Strengthen AI-Powered Recruitment

SAP has unveiled plans to acquire SmartRecruiters, a leading AI-driven talent acquisition platform used by more than 4,000 organizations worldwide. The deal, slated to close in Q4 2025 pending regulatory clearance, will integrate SmartRecruiters’ advanced recruiting, automation, and candidate engagement features into SAP’s SuccessFactors Human Capital Management (HCM) suite.

The acquisition aims to close a crucial gap in SAP’s HR portfolio by delivering end-to-end recruitment capabilities in one unified platform—from talent sourcing and candidate screening to onboarding. SAP says the integration will enable faster hiring, data-backed decision-making, and lower HR costs, leveraging AI-powered analytics and streamlined workflows.

Initially, SmartRecruiters will operate independently to ensure a smooth transition for its existing customers. Over time, its AI functionalities will be embedded within SuccessFactors, enhancing workforce planning and providing a more seamless, data-rich candidate experience.

Analysts see the move as a strategic push into agentic AI for HR—technology that doesn’t just automate tasks but actively drives hiring outcomes. This aligns with rising enterprise demand for intelligent, predictive recruiting solutions.

Although challenges remain—such as aligning operations and ensuring robust data governance—the acquisition is expected to bolster SAP’s competitive standing against Workday and Oracle in the rapidly expanding AI-enabled HCM sector.