Singapore businesses struggle to recruit AI talent amid growing demand

SINGAPORE: A significant talent shortage is emerging in Singapore’s AI sector as over one-third of businesses report difficulties in recruiting artificial intelligence (AI) professionals, according to the ‘Singapore Business Leader Pulse Check: Talent Landscape’ survey conducted by Deel.

The report highlights the ongoing challenges companies face in hiring AI talent, even as demand is expected to surge in the next two to three years.

The survey reveals that the top challenges hiring managers encounter include high salary expectations (63%), difficulty in accurately assessing candidates’ AI capabilities (62%), and a lack of qualified candidates in the local job market (59%). These hurdles are intensifying the competition for skilled AI professionals across industries.

To address this talent gap, nearly half of the businesses surveyed expressed openness to recruiting AI professionals both locally and from abroad. This aligns with Singapore’s National AI Strategy 2.0, which aims to triple the country’s AI workforce to 15,000 by focusing on training local talent and attracting skilled workers from around the world.

Large Singaporean organizations are particularly optimistic about international hiring, with three in five companies indicating that bringing in talent from abroad facilitates skills transfer to local employees.

Despite the current talent shortage, 87% of large organizations remain confident in the overall talent landscape in Singapore, with 74% attributing their optimism to the country’s status as an international business hub. Furthermore, 62% of organizations recognize the advantages of tapping into the global talent pool from Singapore, enhancing their access to specialized skills.

Remote work has also become a crucial factor in talent retention and acquisition, with 80% of businesses prioritizing it as a key strategy. Additionally, 90% of Singaporean companies consider remote working still relevant to their organizational goals, citing cost reductions (61%) as one of the primary benefits.

AI integration within Singaporean companies is on the rise, with 98% of organizations either exploring or already incorporating AI into their operations. Over half (54%) of the surveyed companies have implemented AI in their HR practices, utilizing tools such as generative AI (64%), AI-driven recruitment and screening (63%), and virtual assistants or chatbots (60%).

Among those that have integrated AI into HR, 62% have praised its ability to enhance accuracy and reduce human error in payroll processing and benefits administration.

TISG/

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