SINGAPORE, August 26, 2024 – A significant talent gap remains in Singapore’s artificial intelligence (AI) sector, despite optimism for AI’s future role in business, according to Deel, a global HR platform for remote teams. Deel’s latest survey, titled “Singapore Business Leader Pulse Check: Talent Landscape,” highlights that while demand for AI skills is projected to rise significantly, many companies continue to face challenges in recruiting qualified AI professionals.
The survey, which polled decision-makers from large enterprises in Singapore with over 1,000 employees, revealed that 86% of respondents expect a surge in demand for AI expertise over the next two to three years. This demand is particularly strong in areas such as customer service, product development, and sales and marketing. However, despite this anticipated growth, 39% of these organizations are struggling to find suitable AI talent.
Challenges in AI Recruitment
Several factors contribute to this recruitment challenge. High salary expectations top the list, with 63% of respondents citing it as a barrier. Another 62% find it difficult to accurately assess a candidate’s AI capabilities, while 59% point to a lack of qualified candidates in the local job market.
To mitigate these challenges, nearly half (49%) of the surveyed businesses are considering hiring AI talent from both Singapore and abroad. This approach aligns with Singapore’s National AI Strategy 2.0, which aims to triple the nation’s AI workforce to 15,000 by attracting global talent and upskilling local professionals.
“Global hiring enables companies to find highly specialized 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,” said Karen Ng, Regional Head of Expansion & Market Lead Singapore, Hong Kong, ASEAN, and India at Deel.
Benefits of Global Hiring
Global hiring offers several advantages beyond filling immediate skill gaps. According to the survey, 70% of large Singapore organizations believe that accessing a wider talent pool is the primary benefit of hiring internationally. Furthermore, 62% of respondents see global hiring as a way to build a more diverse workforce.
An additional 58% of companies highlighted the importance of skills transfer from international hires to local employees. These global experts are seen as vital in mentoring local talent and transferring advanced knowledge, which is crucial for maintaining Singapore’s competitive edge in the AI sector.
Talent Attraction and Retention
Despite the challenges in AI recruitment, the overall sentiment among large organizations in Singapore remains optimistic. The survey found that 87% of respondents are confident in the country’s talent landscape, with 74% attributing this to Singapore’s position as an international hub. Additionally, 62% of organizations appreciate the ease with which they can tap into the global talent pool from Singapore.
Remote working continues to play a significant role in talent attraction and retention. The survey revealed that 90% of respondents find remote work relevant to their company’s future direction, with 80% citing talent retention as a key factor, and 62% noting its importance in attracting new talent. Moreover, 61% of organizations believe remote work helps reduce operational costs.
AI Integration in HR Practices
The survey also indicates that AI is becoming increasingly integrated into HR practices. A vast majority of Singapore organizations (98%) have either already adopted AI tools or are considering doing so to enhance business operations and attract talent. More than half (54%) of the companies surveyed are already using AI in their HR processes.
Common AI applications in HR include Generative AI (64%), AI recruitment and screening tools (63%), and virtual assistants and chatbots (60%). Companies that have integrated AI into their HR practices report improved accuracy and reduced human error, particularly in payroll processing and benefits administration, with 62% expressing satisfaction with these enhancements.
The findings underscore the ongoing challenges Singapore faces in building a robust AI workforce. While demand for AI skills is expected to grow, addressing the talent shortage will require a multifaceted approach that includes global hiring, skills transfer, and continued investment in AI integration across business practices.
The survey, conducted by Rakuten Insight between June and July 2024, involved 250 business decision-makers from large enterprises across various industries in Singapore.