SAP‘s announcement to acquire SmartRecruiters is not simply another example of market consolidation. It’s a signal that the future of talent acquisition lies in intelligence, not infrastructure—and that agentic, AI-driven hiring is no longer aspirational. This is not about plugging a product gap in SuccessFactors. It’s a strategic repositioning in response to how enterprise buyers are rethinking the value of the ATS itself.
Not Just a Technology Play
SAP’s acquisition is not about acquiring a missing feature. But this is more about market positioning, buying credibility, and shifting how the enterprise addresses AI in TA. It’s about catching up. Despite years of investment in SuccessFactors, SAP has not led in recruitment innovation. SmartRecruiters offers not only a more modern ATS but also something SAP lacked—a clear path toward agentic capabilities in TA.
And this matters now more than ever. Aptitude Research’s 2025 report found that while 34% of companies are increasing investment in their ATS, a staggering 82% report significant functionality gaps. Simply tracking applicants is no longer enough. Companies expect platforms to recommend, engage, and decide.
Agentic AI Is Not a Trend—It will be the New Standard
SmartRecruiters is already operating in the agentic era. The platform integrates CRM, AI matching, automation, and personalized candidate outreach.
Our latest data shows:
- 1 in 4 companies are replacing their ATS in 2025.
- Only 28% are satisfied with their current ATS decision.
- 1 in 3 companies are considering adopting Agentic AI in TA.
This acquisition validates the agentic shift. Platforms that act, not just automate, will define the next decade of talent technology.
A Platform Designed to Be Different
SmartRecruiters has always been on a different trajectory. When founder Jérôme Ternynck introduced the platform at ERE’s tech conference in 2008, his pitch wasn’t incremental improvement—it was reinvention. The ATS wasn’t built to be more of the same; it was built to prioritize candidate experience, recruiter collaboration, and business outcomes. It was still an ATS but it felt different from other best of breeds at the time.
That vision has carried through. Under Rebecca Carr’s leadership, SmartRecruiters doubled down on what mattered: marketplace extensibility, high-volume automation, and AI-assisted decision support. She brought discipline and strategy to a bold product vision—and created a platform uniquely positioned for where the market is going, not where it’s been.
It’s No Longer HCM vs. Best-of-Breed
For over a decade, companies evaluated talent acquisition tech through one lens: integrated HCM suites (SAP, Oracle, Workday) vs. best-of-breed solutions (SmartRecruiters, iCIMS, Employ, Greenhouse). But that framework is shifting. The future is not about modularity vs. integration—it’s about intelligence vs. infrastructure.
Today’s leading platforms—like Paradox, Eightfold, and Phenom—weren’t born as ATSs. They emerged from CRM, AI, and candidate experience. They are intelligence-first and/or experience-first, not compliance-first. SmartRecruiters, while founded as an ATS, evolved into this new category—a hiring platform that blends workflow, engagement, and analytics.
As of this year:
- 54% of enterprises are managing multiple ATSs.
- 50% are actively evaluating ATS platforms for additional capabilities.
- 48% report using disparate TA solutions over integrated HCM.
The choice isn’t between integration and functionality anymore. The bar has moved. The question now is: can your platform act intelligently, agentically, and proactively?
More Acquisitions Are Coming
This SAP–SmartRecruiters deal is the tip of the spear. M&A activity in talent tech is accelerating—especially as companies recalibrate around co-pilots, automation, and real-time intelligence. According to Aptitude Research, most ATSs are still failing to deliver in key areas: scheduling, sourcing, engagement, and analytics.
The market is ripe for further consolidation. Platforms that bring agentic capability—not just data tracking—will be acquisition targets. HCM providers will need to either build, buy, or partner to remain competitive.
SAP didn’t just acquire an ATS. It acquired a platform already positioned for the next generation of hiring: intelligence-led, action-oriented, and candidate-first. SmartRecruiters isn’t just a plug-in to SuccessFactors. It’s SAP’s bet on the future of talent technology—and that future is agentic.
I’m excited to see what is next. HRTech will not be boring this fall conference season!
