Nine in ten Singaporean organizations (91 percent) reported artificial intelligence (AI)-related role changes or displacement, corresponding with the global findings, new research from IDC, commissioned by Deel, showed last Wednesday.
Deel said in a statement that the new research has revealed a workforce in rapid transition: two in three global organizations (66 percent) expect to slow entry-level hiring over the next three years due to AI.
But amid disruption, the data also points to a clear path forward，as the findings show that organizations aren’t standing still, with 67 percent are already investing in AI training programs to upskill workers and future-proof their teams.
“AI is no longer emerging, it’s fully here. 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,” said Nick Catino, Global Head of Policy at Deel.
According to the research, the impact of AI on the global workforce cannot be overstated.
Nearly all organizations surveyed (99 percent) have implemented AI, and almost 70 percent 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.
It is noted that 75 percent of Singaporean firms report growing difficulty recruiting and training future leaders due to the loss of entry-level learning pathways, much higher than the globally reported 71 percent.
Meanwhile, 70 percent of Singaporean firms say fewer on-the-job development opportunities now exist for junior employees.
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.
The IDC research also revealed that among the organizations who have experienced role changes or displacement, one-third (34 percent) are 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, signaling a fundamental redefinition of how work gets done.
Among all Asian markets surveyed, Singapore reported the highest levels of job displacement at 48 percent.
In contrast, only 11 percent of Chinese organizations reported displacement, the lowest among all surveyed markets.
China also leads in job redesign (79 percent) rather than elimination, reflecting robust national reskilling initiatives to adapt its workforce to the AI revolution.
In response to the effects of AI on the workforce, two-thirds of the businesses surveyed are already actively investing in AI training programs to upskill workers and future-proof their teams.
Singaporean firms, in particular, have charged ahead on their investment in these training programs, with nearly three in four companies reporting their investment in AI training programs.
Despite this, challenges faced by global organizations persist as 57 percent cite limited employee engagement in training; 51 percent face budget constraints; 45 percent struggle to find expert trainers; 29 percent are unsure who owns the AI reskilling process internally and only 3 percent of companies have established cross-functional teams to coordinate initiatives.
Though Singapore ranks third globally in AI training program investment, it has the lowest employee engagement in AI-focused training programs (64 percent) in the region.
Further, Singapore is third worldwide (56 percent), in reporting budget constraints as a challenge in reskilling
employees.
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 percent of global organizations and 2 percent of Singaporean companies surveyed view them as essential for entry-level roles.
Instead, businesses are prioritizing 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 percent); problem-solving and critical thinking abilities (59 percent); strong communication and collaboration skills (51 percent).
In Singapore, firms have also reported the continued hiring of entry-level talents, but with more specific skill sets (58 percent).
The demand for the top entry-level requirements swings even higher than the global average – 69 percent of firms value technical certifications, and 61 percent look for problem-solving and critical thinking abilities.
Additionally, Singaporean companies value the portfolio of work (50 percent) that entry-level hires can bring to the table, slightly more than communication and collaboration skills (43 percent).
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 percent) say legacy systems are slowing AI integration, while 43 percent 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 percent to 100 percent more than comparable tech roles, with Asia Pacific markets such as Korea (25 percent), India (22 percent), New Zealand (21 percent) and Australia (20 percent) leading in 50 percent and higher salary premiums.
Singapore comes close at 15 percent, and companies in Singapore are most likely to source AI talent from Southeast Asia (73 percent), followed by South Asia (39 percent) and East Asia (32 percent).
Beyond higher pay for talent with AI know-how, companies are also leaning on additional incentives, such as access to cutting-edge tools (49 percent) and well-defined career paths (43 percent) 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.
The research also reveals a significant gap in AI governance globally.
Only 16 percent of businesses say they are very familiar with their local AI regulations, and fewer than one in four (24 percent) consider these rules clear and supportive.
Singapore ranks highest in Asia, with 36 percent 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 percent), followed closely by India (53 percent) and Germany (53 percent).
This lack of clarity around external regulations appears to extend within organizations themselves.
Just 22 percent of organizations have formal internal policies governing employee AI use, and nearly half (47 percent) rely on informal guidelines to govern employee AI use.
This trend is likewise reflected in Singapore, where more than half (56 percent) of companies have implemented informal guidelines.
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,
“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,” noted Dr. Chris Marshall, Vice President for AI in Asia Pacific, IDC.
The research is based on the findings from a survey of 5,500 business leaders, across 22 markets.