Workforces being upended at ‘unprecedented pace’ by AI

New research from Deel shows how artificial intelligence (AI) is redefining the pace of hiring and desired skill sets for certain workers, with entry-level jobs being especially impacted.

Global payroll and HR platform Deel recently commissioned research from IDC, which formed the basis of a newly released report, AI at Work: The Role of AI in the Global Workforce, which presents the findings from a survey of 5,500 business leaders across 22 countries.

According to the research, almost all Australian businesses (98 per cent) say that AI is reshaping the pace of hiring or the desired skill sets of junior roles. Notably, 8 per cent have stopped hiring entry-level staff altogether, while 30 per cent have slowed their recruitment.

Over nine in 10 (93 per cent) businesses anticipate reducing the general hiring of entry-level staff in the next one to five years.

AI has also, Deel said, influenced what organisations are looking for in entry-level candidates, with over 68 per cent now rating more specific skill sets and certifications, such as AI tools and coding boot camps, as a top three requirement. Two-thirds are also prioritising problem-solving or critical thinking assessments.

“The result? A widening skills gap, a growing challenge in building the next generation of leaders,” the provider said in a statement.

Speaking about the research, Deel global head of policy Nick Catino (pictured) said that AI is no longer emerging, but is “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,” he said.

“This isn’t about staying competitive; it’s about staying viable.”

AI’s influence on the global workforce, Deel went on, is spurring widespread restructuring of roles, although it added that the impact of this varies widely across the world.

“The research reveals that nine in 10 Australian organisations (90 per cent) have experienced role changes or displacement, with 28 per cent 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, signalling a fundamental redefinition of how work gets done,” the provider said.

Elsewhere, all Australian organisations that were surveyed have implemented AI to some extent, and 70 per cent have moved beyond pilots to full integration. But with AI taking over repetitive and knowledge-based tasks, companies face mounting challenges in talent development and leadership pipelines.

“Almost 75 per cent report growing difficulty recruiting and training future leaders due to the loss of entry-level learning pathways; 74 per cent say fewer on-the-job development opportunities now exist for junior employees; [and] globally, media, retail, healthcare, professional services and logistics are the industries most affected by declining entry-level hiring,” the provider said.

“To stay ahead, leading organisations are redesigning roles, reskilling teams and building a continuous learning culture to maintain a balance between productivity and people development.”

Finally, Deel’s research also revealed a significant gap in AI governance.

“Forty-two per cent of Australian organisations were unfamiliar with local AI regulations. Globally, that unfamiliarity in AI regulations is widespread (47 per cent), with China recording the highest share of organisations unfamiliar with local AI-related regulations (57 per cent), followed closely by India (53 per cent) and Germany (53 per cent),” the provider said.

Furthermore, just one in four (25 per cent) Australian organisations consider these rules clear and business-friendly.

“It wasn’t all bad news for the Australian government, however, with many Australian organisations of the view that the federal government was being supportive (49 per cent) or at least not a hindrance (27 per cent) in helping businesses adopt and scale AI,” Deel said.

IDC’s vice president for AI in Asia-Pacific, Dr Chris Marshall, reflected that AI is “reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift”.

“Organisations that will thrive are those that unite automation with a human-centred vision – investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation,” he said.