Humanly Acquires CareerArc for Hiring Tools
- •Humanly acquired CareerArc, its fifth acquisition since 2025, adding recruitment marketing tools to its AI hiring suite
- •Nine of CareerArc’s 13 employees will join Humanly, which has raised $52 million and serves more than 120 customers
- •EU AI Act transparency rules apply to candidate-facing chat; high-risk employment duties were delayed until December 2027
Humanly acquired recruitment marketing company CareerArc, marking its fifth acquisition since 2025; the companies did not disclose the price. Humanly has 50 employees and sells automated chat, screening and interview tools. CareerArc adds social recruiting software and interactive career-site maps. The deal combines software for different parts of hiring, according to GeekWire.
Humanly is based in Bellevue, Washington, and was founded in 2018. CareerArc, founded in 2009 and based in Burbank, California, had 13 employees; nine are joining Humanly. Humanly acquired Sprockets, Qualifi and HourWork in 2025, and employee engagement platform Anthill earlier this year. It has raised $52 million in total, including $25 million in April, and counts Microsoft, Domino’s and MGM Resorts among more than 120 customers.
The EU AI Act classifies AI used for recruitment and selection as high-risk, including tools that screen applications or evaluate candidates. The Omnibus delayed related duties from August this year to December 2027, alongside duties for six other categories. Transparency rules took effect on 2 August and still apply to candidate-facing chat, even when a system is not classified as high-risk.
A Morgan McKinley survey found that more than half of UK employers do not use AI to hire, compared with 36% across seven markets. In the survey, 23% of candidates said AI assessment would make them far less likely to apply, rising to 28% in the UK. Only 5% would accept a decision made by AI alone, while 44% would accept one with a human involved. The article also reports that 25% of employers said rising application numbers slowed screening, and 78% of jobseekers used generative AI to look for work. Humanly targets high-volume employers. The deal disclosed no revenue figure or plans for how many of the five acquired products will continue as products. London-based Ethos, which matches experts to work, raised $22.75 million from Andreessen Horowitz and lists possible high-risk classification under the AI Act as a risk.