Singapore firms predict AI talent demand, face local hiring issues

Deel has released findings from its latest "Singapore Business Leader Pulse Check: Talent Landscape" survey, conducted between June and July 2024 in collaboration with Rakuten Insights. The survey evaluated responses from 250 business decision-makers within large enterprises (1,000+ employees) across various industries in Singapore.

The research reveals that a significant majority of large organisations in Singapore, accounting for 86%, anticipate a surge in demand driven by the growing adoption of artificial intelligence (AI). However, despite this expected increase, more than one-third of these organisations (39%) are experiencing challenges in sourcing the right AI talent. A notable shortage of qualified local candidates has been identified as a major hurdle.

In response to this talent gap, nearly half (49%) of the surveyed business leaders expressed openness to hiring AI talent from both Singapore and abroad. This approach aligns with Singapore's National AI Strategy 2.0, which aims to expand the AI workforce to 15,000 by combining local training with global talent acquisition.

Karen Ng, Regional Head of Expansion & Market Lead for Singapore, Hong Kong, ASEAN, and India, said, "Global hiring enables companies to find highly specialised skills, including AI talent. This alleviates the pressure of local skill shortages while ensuring Singapore has the right expertise needed to stay competitive at a global level. To do so, it requires collective effort between public and private sectors to ensure smooth hiring and managing talent locally and internationally."

The survey also highlights several benefits of global hiring. Around 70% of large Singapore organisations believe it provides access to a broader talent pool, while 62% find it helps shape a more diverse organisational framework. Furthermore, 58% of respondents think international hiring enables knowledge and skills transfer to local employees, with international experts playing a critical role in mentoring and upskilling the local workforce.

Additional insights from the survey suggest an overall positive outlook regarding the talent landscape in Singapore. Over 4 in 5 respondents (87%) believe in the robustness of the talent environment, attributing 74% of this confidence to Singapore's status as an international hub. Moreover, 62% of organisations find the global talent pool accessible from Singapore.

The ongoing relevance of remote work is affirmed, with 90% of organisations recognising its significance. Reasons for supporting remote work include talent retention (80%) and recruitment (62%), along with cost reduction benefits (61%).

The integration of AI within HR practices appears to be well underway among large Singapore entities. The survey indicates that 98% of organisations are either using or considering AI to boost business efficiency and attract talent. Specific AI tools reported include Generative AI (64%), AI recruitment and screening (63%), and virtual assistants and chatbots (60%). The enhancement of accuracy and reduction in human errors, particularly in payroll processing and benefits administration, is well appreciated by 62% of organisations leveraging AI in their HR operations.