The rules have changed: how AI is transforming recruitment, training, and more

AI can only be implemented successfully if there are people with the skills to make the most of it. Nick Catino (NC), Head of Policy at Deel, recently spoke to TechTrade Asia about how businesses are coping with a shortage of AI talent.

Q: There's been a lot of talk about how AI is replacing people. What's Deel's stance on this? 

NC: Our Global AI Hiring report shows that 91% of organisations have already experienced role changes or displacement, and one-third (34%) have undergone significant workforce restructuring to integrate AI. Routine tasks are being automated, while human roles shift toward strategic oversight, system management, and creative problem-solving. 

This is also transforming recruitment. Firms are adopting skills-based hiring, where they value practical, demonstrable abilities alongside technical credentials. Traditional university degrees are losing relevance, with only 5% of global organisations and 2% of Singaporean companies viewing them as essential for entry-level roles. 

With employers now prioritising technical capabilities, the top skills required for employees today include: 

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

Talent today must demonstrate both technical competence and soft skills to meet the evolving employer expectations.  

Q: Is the same thing happening in Asia?

Deel recently partnered with the market research firm IDC to survey 5,500 business leaders across 22 countries, including Singapore, about the impact of AI at work.* 

What we found is that AI is rapidly reshaping hiring, with routine tasks increasingly automated. This means candidates must showcase adaptability and familiarity with digital tools and skills, making the selection process tighter and slowing hiring overall. Singapore mirrors this trend, but shows more resilience than other markets. 

Q: Over half (53%) of Singaporean firms are expecting entry-level hiring to slow in the next three years, but below the global average at 66%. Could you comment on why that is?

Companies (in Singapore) are rethinking how they hire for entry-level roles and are placing greater emphasis on versatile skills and digital literacy rather than pure headcount. A major reason for this is strong government support. 

Nearly half of Singaporean companies in our Global AI Hiring report say the government is helping businesses adopt and scale AI. Initiatives such as the National Artificial Intelligence Strategy 2.0 are also equipping companies and workers with the in-demand digital skills needed for an AI-driven workplace. 

Q: National AI strategies typically come with guard rails. What barriers can firms face when it comes to navigating AI regulations? 

A: Our research shows nearly half of companies expect they will require additional legal or compliance resources to manage AI use, which may be a challenge for smaller, or resource-constrained companies. Regulatory clarity is another concern. Only 16% of firms say they are very familiar with local AI regulations, and just 24% view these regulations as clear and supportive. This lack of understanding can deter firms from adopting AI confidently. 

Additionally, 2.1% of global firms say insufficient government support for scaling AI is also an active barrier. As a result, some companies may prioritise investment in other areas, especially if they also have legacy systems in place and a lack of AI talent to help speed up adoption.

Q: What are companies doing to secure and nurture top AI talent?

NC: Demand for skilled AI talent continues to rise, and many companies are using multiple strategies to attract and retain them. According to Deel's State of Global Compensation Report, many firms, especially startups unable to match the salaries of 'Big Tech' firms, are turning to equity-heavy compensation. This attracts ambitious AI talent hungry for long-term benefits, while helping employers avoid inflating fixed payroll costs. 

Aside from compensation, our Global AI Hiring Report shows nearly half of global firms say access to cutting-edge projects or tools is the strongest attractor for AI talent. Another 43% say clear growth and promotion pathways also play a major role in retention. 

Q: We've heard a lot about upskilling employees. Is this a common way to boost AI skills in the workforce? 

NC: Two-thirds of businesses globally are already investing in AI training, but Singapore is ahead; nearly three in four companies report active investment in AI programmes. This reflects the impact of government and private-sector efforts, including AI Singapore, which promotes AI readiness. 

Q: Are there challenges for Singapore here?

NC: Despite ranking third globally for AI training investment, Singapore has the lowest employee engagement in those programmes across the region (64%). To improve this, companies can consider making programmes more focused and tailored to employees’ needs and career interests. More focused programmes might bring a greater understanding on why reskilling matters, motivating employees to actively integrate AI in their daily work across teams. 

*AI at Work: The Role of AI in the Global Workforce, 2025.