Analyzing data collected in September 2025, an IDC InfoBrief commissioned by Deel highlights how companies can navigate work and workforce transformation by balancing automation with human development.

New research from IDC, commissioned by Deel, reveals a workforce in rapid transition: 66% of global organizations expect to slow entry-level hiring over the next three years, while 91% report roles are already changing or disappearing due to AI. 

The result? A widening skills gap and a growing challenge in building the next generation of leaders. But amid disruption, the data also points to a clear path forward. The findings show that organisations aren’t standing still, with 67% are already investing in AI training programmes to upskill workers and future-proof their teams. 

The IDC InfoBrief “AI at Work: The Role of AI in the Global Workforce” presents the findings from a survey of 5,500 decision makers shaping both business and digital strategies from organizations of all sizes across a wide range of industries. The research spanned 22 markets worldwide: Argentina, Australia, Brazil, Canada, Chile, China, Colombia, France, Germany, Hong Kong, India, Israel, Japan, South Korea, Mexico, the Netherlands, New Zealand, Singapore, Spain, Sweden, the UK, and the US. 

“AI is no longer emerging, it’s fully here,” said Nick Catino, Global Head of Policy, Deel. “It’s reshaping how we work and how businesses operate. Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn’t about staying competitive, it’s about staying viable.

From disruption to direction: How companies can respond 
The impact of AI on the global workforce cannot be overstated. Nearly all organizations surveyed (99%) have implemented AI, and almost 70% have moved beyond pilots to full integration. But with AI taking over repetitive and knowledge-based tasks, there is more than job displacement at stake. With the slowing of entry-level hiring, companies also face mounting challenges in talent development and leadership pipelines.

Globally, media, retail, healthcare, professional services and logistics are the industries most affected by declining entry-level hiring.

To stay ahead, leading organizations are redesigning roles, reskilling teams and building a continuous learning culture to maintain a balance between productivity and people development.

Workforce restructuring and redesigning

The research data shows that 91% have experienced role changes or displacement, with 34% undergoing significant workforce restructuring to integrate AI. As automation takes over routine tasks, companies are shifting human roles toward strategic oversight, AI systems management and creative problem-solving, signalling a fundamental redefinition of how work gets done.

  • New Zealand (53%), Argentina (53%) and the US (50%) report the highest levels of job displacement, where roles were removed entirely due to AI. 
  • Among all Asian markets surveyed, Singapore reported the highest levels of job displacement at 48%. In contrast, only 11% of Chinese organizations reported displacement, the lowest among all surveyed markets.
  • China also leads in job redesign (79%) rather than elimination, reflecting robust national reskilling initiatives to adapt its workforce to the AI revolution. 

Reskilling momentum grows, but accountability lags
In response to the effects of AI on the workforce, two-thirds of the businesses surveyed are already actively investing in AI training programmes to upskill workers and future-proof their teams. Singapore firms, in particular, have charged ahead on their investment in these training programmes, with nearly 3 in 4 companies reporting their investment in AI training programmes.

Despite this, challenges faced by global organizations persist:

  • 57% cite limited employee engagement in training
  • 51% face budget constraints
  • 45% struggle to find expert trainers
  • 29% are unsure who owns the AI reskilling process internally and only 3% of companies have established cross-functional teams to coordinate initiatives

New skills matter the most

With this shift in job skills, entry-level roles are being particularly impacted. Aside from many businesses planning to slow entry-level hiring, the requirements are also shifting. Traditional university degrees are losing importance, with only 5% of global organisations and 2% of Singaporean companies surveyed view them as essential for entry-level roles³. Instead, businesses are prioritising hands-on, practical skills.

Entry-level hires are increasingly expected to be proficient with AI and technology tools, while also demonstrating critical thinking, communication skills and proven expertise from day one. This is a dramatic shift from academic credentials to real-world capabilities, with employers valuing agility, continuous learning and human creativity, alongside technical fluency.

The top three requirements for entry-level talent now include:

  • Technical certifications in AI tools or from coding bootcamps (66%)
  • Problem-solving and critical thinking abilities (59%)
  • Strong communication and collaboration skills (51%)

Barriers to AI success: Integration and talent

Despite strong momentum to adopt AI and reskill the workforce, that does not mean the path forward is smooth. Nearly half of the global organizations surveyed (48%) say legacy systems are slowing AI integration, while 43% cite a shortage of skilled AI talent as a major barrier. 

To compete, half of all employers are now willing to pay AI specialists 25% to 100% more than comparable tech roles, with Asia Pacific markets such as Korea (25%), India (22%), New Zealand (21%) and Australia (20%) leading in 50% and higher salary premiums. Singapore comes close at 15%, and companies in Singapore are most likely to source AI talent from Southeast Asia (73%), followed by South Asia (39%) and East Asia (32%).

Beyond higher pay for talent with AI know-how, companies are also leaning on additional incentives, such as access to cutting-edge tools (49%) and well-defined career paths (43%) to attract and retain top AI talent. These incentives are crucial for AI professionals to stay relevant and motivated, fostering innovation and making employers more attractive in a tight talent market.

Governance gap

The research also reveals a significant gap in AI governance globally. Only 16% of businesses say they are very familiar with their local AI regulations, and fewer than one in four (24%) consider these rules clear and supportive. Singapore ranks highest in Asia, with 36% of firms finding local AI regulations clear and supportive.  

In contrast, China recorded the highest share of organizations unfamiliar with local AI-related regulations (57%), followed closely by India (53%) and Germany (53%).

This lack of clarity around external regulations appears to extend within organizations themselves. Just 22% of organisations have formal internal policies governing employee AI use, and nearly half (47%)  rely on informal guidelines to govern employee AI use. This regulatory uncertainty risks slowing innovation and exposing companies to compliance and ethical risks.

“Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift,” noted Dr. Chris Marshall, Vice President for AI, Asia Pacific, IDC. “Organizations that will thrive are those that unite automation with a human-centered vision – investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation.”