When competition for AI talent is fierce, businesses have to cast their net wide – and deep.

Despite 4 in 5 organisations in Singapore anticipating a surge in demand for AI skills in the next two to three years, more than a third (39%) admit they are grappling with recruiting AI talent, according to the latest study by HR platform Deel.

This change in the job market is relatively new, so companies are currently seeing a leaner supply of AI talent in the face of growing demand for AI skills.

But while the Singaporean government is doing its part to ensure the country’s workforce is in step with the shift towards AI – by working to triple the local AI workforce to more than 15,000 by 2029 – a few gaps remain. These include:

• Candidates’ high salary expectations (63%)
• Recruiters’ ability to evaluate AI skills accurately (62%)
• The lack of qualified local candidates (59%)

We asked Karen Ng, Regional Head of Expansion and Enterprise (North and South Asia) at Deel, about what a looming gap between AI talent supply and demand means for Singaporean businesses – and how the global epicentre of tech and tech talent can stay competitive:

Deel’s survey shows that 86% of large Singapore organisations expect an increase in demand for AI skills, particularly in customer service, product development, and sales. How do you foresee these industries evolving as AI becomes more integrated?

As AI becomes more embedded across industries, sectors like customer service, product development, and sales are poised for transformation. For example, in customer service, AI-driven solutions enable companies to offer more personalised and efficient interactions through 24/7 support and a reduction in response times by using intelligent chatbots and virtual assistants.

AI analytics can speed up product design and improve product offerings. This requires a mix of traditional knowledge and data analytics. Similarly, sales is also evolving as companies implement AI-driven tools that can assess customer behaviour to predict purchasing patterns, and tailor recommendations accordingly. By interpreting AI-generated insights, sales teams can connect with customers in more targeted and personalised ways.

Also Read: 1 in 3 Malaysians feel threatened by generative AI

With all of this in mind, employers in Singapore are increasingly seeking candidates with AI skills and knowledge, even for roles not traditionally associated with AI. This trend is shown in recent job descriptions. Employers often include skills in using AI tools and technologies, understanding machine-learning algorithms, and experience using data analytics to make decisions.

There has been much speculation around whether AI will eliminate jobs, but I think the history of technological advancement shows that, ultimately, this will not happen.

Historically, technological revolutions, from the loom to the personal computer, have indeed reshaped work without eliminating the need for human involvement. As with other advancements, people need to adapt and embrace new responsibilities created by advancing technology.

The survey highlights significant challenges in hiring AI talent, such as high salary expectations and difficulties in assessing capabilities. How are organisations overcoming these challenges, and what strategies are proving most effective?

Companies in Singapore should adapt to leading trends in the job market to overcome challenges in hiring talent who are experts in AI. Beyond offering competitive salaries, businesses should focus on factors like work-life balance, flexible working arrangements, strong employee benefits, and clear career development opportunities. These are all important in attracting and retaining world-class talent in today’s competitive job market.

This approach not only improves retention by fostering long-term career growth, but attracts top candidates who are eager to grow their skills within a supportive and forward-looking organisation. Ultimately, by combining these factors, companies can create an environment where professionals feel valued, supported, and invested in for the long haul.

Also Read: How quickly is your workplace changing?

With 49% of business leaders open to hiring AI talent from abroad, how do you see the balance between nurturing local talent and attracting international expertise evolving? How does this align with Singapore’s National AI Strategy 2.0?

Singapore’s S$1 billion commitment to AI spending as part of its National AI Strategy 2.0 has and will continue to enable the island-state to increase its competitiveness in the AI space.

A shortage of AI specialists is a global issue, but one that's keenly felt in Singapore due to its smaller labour force relative to the size of its ambitions. Understandably, funds have been earmarked to triple this specific sector of the workforce by both training local talent and attracting global talent.

Singapore is ready to become a major player in the global AI market. It will do this by growing its local talent while attracting world-class experts.

One key finding is that global hiring not only fills skill gaps but also fosters diversity and skill transfer. Could you elaborate on the role international AI experts play in mentoring local teams and what impact this has on the talent landscape?

Talent mobility plays a critical role in Singapore’s AI ambitions. As global hiring trends rise, this talent pipeline is vital for accelerating Singapore’s position as a global AI leader.

Deel’s latest Singapore Business Leader Pulse Check: Talent Landscape survey found that 58% of large organisations in Singapore believe that hiring foreign talent enables skills transfer with local employees. International subject matter experts often take on mentorship roles, give training, and share best practices.

Singapore has a special advantage as a leader in AI because it can use the skills of other countries and its local people. This helps the country overcome its smaller local talent pool by using global knowledge and improving its own workforce.

By integrating international experts into local teams, organisations can benefit from diverse perspectives and approaches, which can enhance problem-solving and creativity.

Singapore will be well-positioned to keep its status as a big player in the global AI world. It will always change and innovate to meet the challenges of the future.

Over half of Singaporean organisations are already using AI in HR, particularly for tasks like recruitment, payroll, and benefits administration. In your opinion, what are the most transformative AI tools for HR, and how do they enhance business efficiency?

In HR, where there are many policies and information, AI can be a great help with making decisions. It can quickly gather information and give complete answers to questions in seconds. Embracing AI-driven solutions can enable HR teams to better streamline operations, improve decision-making, and drive strategic initiatives.

AI can also help businesses navigate the complexities of global HR compliance. These tools help businesses operate more efficiently while ensuring they adhere to local laws and regulations, ultimately driving growth and success in a competitive market.

To help companies grow their operations across borders, Deel’s Compliance Hub offers a full set of smart solutions. This hub features Deel’s virtual AI Assistant, which acts as a reliable HR compliance consultant providing instant answers to questions about local laws, regulations, and best practices. This functionality is crucial for businesses managing a global workforce, as compliance requirements can vary significantly from one region to another.

Drawing insights from Deel’s extensive knowledge base, curated by a dedicated team of 200 local HR experts and lawyers, the AI Assistant acts as a virtual compliance expert, guiding businesses through the intricate web of global employment requirements and even tapping into a company’s own workforce data, giving leaders clear, real-time oversight of their global operations. This visibility enables informed decision-making and strategic workforce planning, helping businesses stay proactively compliant.

Given that 98% of organisations are considering or already integrating AI, how do you see AI reshaping HR functions in the coming years? What areas of HR do you think will benefit the most from further AI-driven innovation?

AI is still changing HR functions. I think its biggest impact will be in making it easier to manage a global workforce. As businesses grow around the world, traditional HR tools and methods often don't work well. This makes AI important for bridging the gap between countries, laws, and cultures.

AI can make HR operations easier by automating important tasks like managing payroll, classifying workers, and following rules. These tasks are often hard and error-prone in a global setting.

AI-driven platforms can accurately track workforce data across borders, analyse and interpret multilingual data, help companies navigate language barriers, and ensure data privacy. These capabilities will help to enhance not just efficiency, but communication, employee engagement, and risk mitigation.

Ultimately, AI’s ability to manage these HR complexities makes it an indispensable asset for companies seeking seamless global operations, helping to attract, retain, and support talent wherever it’s found.