A recent white paper produced by the blackbox Lab at D^3 presents a state-of-the-market analysis of 182 companies offering tech-enabled DEI products, highlighting key patterns in company formation, leadership composition, market positioning, and companies’ rhetorical strategy. It offers an in-depth but broad view of how the tech industry is approaching search efforts for much-needed talent and contains implications for the future of this sector.
This report also reveals a growing demand for inclusion-focused, tech-enabled solutions and the tensions shaping their development. The current pushback against DEI, as well as emerging trends emphasizing AI integration and a potential shift towards skills-based hiring, signal that the field is at an inflection point. As companies balance cultural backlash with market demands, the future necessitates adaptability to an ever- changing social, cultural, and technological landscape.
TLDR; This report analyzes 182 companies offering tech-enabled diversity, equity, and inclusion (DEI) products to help leaders understand how the market is evolving and where opportunities—and risks—may lie. The study reveals that companies with a DEI focus tend to have more diverse leadership teams and are more likely to prioritize identity-based solutions. Most products are concentrated in hiring and recruitment, with fewer focused on retention, promotion, or startup support—indicating missed opportunities across the employee lifecycle. The majority of companies use a transactional approach that ties DEI efforts to business value and efficiency, though developmental (culture- and values-driven) and skills-based (competency-focused) approaches are also present. Despite growing interest, most firms remain small, under $50M in valuation, and face headwinds from increasing political backlash. At the same time, trends like AI integration and skills-based hiring are opening new paths forward. For leaders seeking to invest in, partner with, or design DEI technologies, this report offers a clear view of where the field stands today—and where it’s headed.
Read a write up from the Institute for Business in Global Society of the report here: