Global organisations are bracing for rapid workforce transformation as artificial intelligence continues to reshape job roles and hiring patterns, according to new IDC research commissioned by HR technology firm Deel. The study shows that 66 per cent of companies expect to slow entry-level hiring over the next three years, while 91 per cent say job roles are already changing or disappearing due to AI.
The findings form part of the IDC InfoBrief AI at Work: The Role of AI in the Global Workforce, based on a survey of 5,500 business leaders across 22 markets. Respondents highlighted both rising disruption and growing efforts to retrain staff to keep pace with technology.
Entry-level pathways shrink as AI adoption accelerates
IDC reported that nearly all organisations (99 per cent) have implemented AI in some form, with 70 per cent moving beyond pilots into full integration. While automation is improving productivity, the report warns of a shrinking pipeline for early-career talent as repetitive and knowledge-based tasks are increasingly handled by AI.
This trend is especially pronounced in Singapore. Seventy-five per cent of Singapore firms say it is becoming harder to recruit and train future leaders due to declining entry-level opportunities, above the global average of 71 per cent. Seven in ten also report fewer on-the-job development pathways for junior staff.
Industries most affected by reduced entry-level hiring globally include media, retail, healthcare, professional services and logistics.
Nick Catino, Global Head of Policy at Deel, said AI is “reshaping how we work and how businesses operate”, adding that both workers and companies “need to adapt quickly” to remain viable.
Workforce restructuring and rising displacement
Widespread restructuring is under way. IDC found that 91 per cent of organisations have experienced job changes or displacement, and 34 per cent have undergone significant workforce redesign to integrate AI.
Singapore recorded one of the highest levels of job displacement among Asian markets at 48 per cent, trailing only New Zealand and Argentina (both 53 per cent) and the United States (50 per cent). In contrast, only 11 per cent of Chinese firms reported job elimination, the lowest in the study. China instead leads in job redesign (79 per cent), supported by national efforts to retrain workers for emerging roles.
Reskilling grows, but accountability remains unclear
To keep pace with AI adoption, 67 per cent of global organisations are investing in AI training programmes. Singaporean firms report even higher uptake, with three in four already funding such initiatives.
But challenges persist. Respondents cited limited employee engagement (57 per cent), budget constraints (51 per cent) and difficulty finding expert trainers (45 per cent). Only 3 per cent of companies have established cross-functional teams to coordinate reskilling efforts, and 29 per cent remain unsure who owns the process internally. Singapore, despite strong investment, has the region’s lowest engagement rate (64 per cent) for AI-related training.
New skills eclipse traditional degrees
The report highlights a shift away from academic credentials. Only 5 per cent of global businesses – and 2 per cent in Singapore – see university degrees as essential for entry-level roles. Instead, employers prioritise hands-on experience and technical proficiency.
Top requirements now include technical certifications (66 per cent), critical thinking (59 per cent) and communication skills (51 per cent). Singapore firms place even higher importance on certifications (69 per cent) and problem-solving abilities (61 per cent), and show greater interest in portfolios of work (50 per cent).
Integration and talent shortages hinder AI progress
Legacy systems remain a major barrier for 48 per cent of companies, while 43 per cent cite a shortage of skilled AI talent. Employers are increasingly offering higher pay, with Asia-Pacific markets such as Korea, India and New Zealand leading salary premiums of 50 per cent or more. Singapore firms report a 15 per cent premium and frequently source AI talent from Southeast Asia.
Governance remains another weak spot. Only 16 per cent of organisations are very familiar with local AI regulations, and fewer than one in four find them clear and supportive. Singapore leads the region with the highest clarity rating (36 per cent), while China, India and Germany show the lowest familiarity levels.
IDC’s Dr Chris Marshall said organisations that succeed will “unite automation with a human-centred vision”, balancing innovation with robust reskilling and governance.
IDC said companies will need to redesign entry-level pathways, formalise AI governance and scale continuous learning to ensure workers and businesses adapt effectively as AI adoption deepens.
