New research from IDC, commissioned by Deel, suggests the global workforce is in rapid transition. 66% of organisations expect to reduce entry-level hiring, while 91% report roles are already changing or disappearing due to AI. The report suggests 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 are not standing still. 67% are already investing in AI training programmes to upskill workers and future-proof their teams. Companies that act now to reskill, redesign roles, and reimagine how talent grows will be the ones best positioned to thrive in an AI-driven economy.

The IDC InfoBrief “AI at Work: The Role of AI in the Global Workforce”, presents the findings from a survey of 5,500 business leaders, across 22 markets. It highlights how companies can navigate this transformation by balancing automation with human development.

“AI is no longer emerging, it is fully here,” said Nick Catino, Global Head of Policy at Deel. “It is 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

99% of organisations surveyed have started exploring and implementing AI, and 70% have moved beyond pilots to full integration. But with AI taking over repetitive and knowledge-based tasks, companies face mounting challenges in talent development and leadership pipelines.

71% report growing difficulty recruiting and training future leaders due to the loss of entry-level learning pathways.
69% say fewer on-the-job development opportunities now exist for junior employees.
Media, retail, healthcare, professional services and logistics are the industries most affected by declining entry-level hiring.

Workforce restructuring and redesigning

AI’s influence on the global workforce is spurring widespread role restructuring, though its impact varies widely across the world. The research reveals 91% of organisations 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. The report suggests this signals 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.
In contrast, only 11% of Chinese organisations reported displacement, the lowest among all surveyed markets.
China leads in job redesign (79%) rather than elimination, reflecting robust national reskilling initiatives to adapt its workforce to the AI revolution. This reflects China’s national initiative that promotes upskilling through extensive, government-subsidised training programmes aimed at enhancing workforce capabilities nationwide.

Reskilling momentum grows, but accountability lags

So, what are companies around the world doing about reskilling their teams? Two-thirds of organisations are actively investing in AI-focused training programmes, with Canada (77%), Brazil (76%), and Singapore (74%) leading adoption. However, challenges persist:

57% cite limited employee engagement in training,
51% face budget constraints,
45% struggle to find expert trainers.

Responsibility for AI reskilling remains unclear in many companies, with only 3% having established cross-functional teams to coordinate initiatives. 29% admit they don’t know who owns the process.

New skills matter the most

As traditional university degrees lose importance (only 5% of organisations surveyed now view them as essential for entry-level roles), businesses are prioritising hands-on, practical skills.

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

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

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

Barriers to AI success: Integration, talent, and trust

Despite strong momentum, nearly half of organisations (48%) say legacy systems are slowing AI integration. 43% of organisations cite a shortage of skilled AI talent as a major barrier.

To compete, half of all employers are willing to pay AI specialists 25% to 100% more than comparable tech roles. Asia Pacific markets such as Korea (25%), India (22%), New Zealand (21%) and Australia (20%) leading in salary premiums.

Beyond higher pay, 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. Access to cutting-edge tools and projects are crucial for AI professionals to stay relevant and motivated. Furthermore, fostering innovation and making employers more attractive in a tight talent market.

Governance gap

The research also reveals a significant gap in AI governance. 16% of businesses say they are very familiar with their local AI regulations, 24% consider these rules clear and supportive. China recorded the highest share of organisations unfamiliar with local AI-related regulations (57%), followed by India (53%) and Germany (53%).
Just 22% of organisations have formal internal policies governing employee AI use. This regulatory uncertainty risks slowing innovation and exposing companies to compliance and ethical risks.

What this means for everyone

Artificial intelligence (AI) is having a massive impact on hiring and recruitment on a global basis. Nearly 70% of organisations are integrating AI into core business functions such as IT, customer service, supply chain, marketing, HR, and finance. This adoption is expected to boost efficiency and decision-making, but also brings challenges like system integration, talent shortages, and regulatory issues. Companies are competing for AI specialists by offering high salaries and recruiting globally. As a result, everyone in the workforce, particularly young people need to understand AI to prepare for future careers, develop critical thinking skills to navigate AI-generated content, and become informed digital citizens in a technologically evolving world. AI literacy is crucial for identifying bias, understanding ethical implications, and harnessing AI as a tool for problem-solving rather than a shortcut to avoid learning.