Deel, the all-in-one payroll and HR platform for global teams, today released its “AI at Work: The Role of AI in the Global Workforce” research, an IDC InfoBrief commissioned by Deel.
Examining how AI is transforming hiring practices, reshaping job roles, and creating new talent challenges, the research reveals a workforce in rapid transition: 73% of Hong Kong organizations expect to reduce entry-level hiring within three years, while 85% report roles are already changing or disappearing due to AI. The result? A widening skills gap and a growing challenge in building the next generation of leaders.
But amid disruption, the data also points to a clear path forward. Two-thirds (67%) of Hong Kong organizations are already investing in AI training programs to upskill workers and future-proof their teams.
IDC InfoBrief “AI at Work: The Role of AI in the Global Workforce”, presents the findings from a survey of 5,500 business leaders, across 22 markets. It highlights how companies can navigate this transformation by balancing automation with human development.
“AI is no longer emerging, it’s fully here,” said Nick Catino, Global Head of Policy at Deel. “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.”
From disruption to direction: How Hong Kong companies can respond
Nearly all Hong Kong organizations surveyed (99%) have implemented AI, and 68% have moved beyond pilots to full integration – higher than the Asia-Pacific average of 65%. But with AI taking over repetitive and knowledge-based tasks, Hong Kong companies face mounting challenges in talent development and leadership pipelines:
- 74% report growing difficulty recruiting and training future leaders due to the loss of entry-level learning pathways
- 70% say fewer on-the-job development opportunities now exist for junior employees
- 73% expect to reduce entry-level hiring within the next three years
- Globally, media, retail, healthcare, professional services and logistics are the industries most affected by declining entry-level hiring.
To stay ahead, leading Hong Kong organizations are redesigning roles, reskilling teams, and building a continuous learning culture to maintain a balance between productivity and people development.
Workforce restructuring and redesigning
AI’s influence on Hong Kong’s workforce is spurring unprecedented restructuring of roles. The research reveals that 85% of Hong Kong organizations have experienced role changes or displacement, with 48% undergoing significant or complete workforce restructuring to integrate AI – the highest rate across all the markets surveyed, ahead of major global markets including the US, Israel, South Korea, and India. As automation takes over routine tasks, Hong Kong companies are shifting human roles toward strategic oversight, AI systems management, and creative problem-solving, signaling a fundamental redefinition of how work gets done.
- 20% have fully restructured their organization to integrate AI workflows – second globally only to Singapore (24%)
- 28% have significant role redesign underway across departments
- 15% report no major changes to job roles
Globally, New Zealand (53%), Argentina (53%), and the US (50%) report the highest levels of job displacement, where roles were removed entirely due to AI.
- In contrast, only 11% of Chinese organizations reported displacement, the lowest among all surveyed markets.
- Mainland China registered the largest percentage in redesigned job roles (79%) due to AI integration, indicating that they are effectively reskilling their relatively younger workforce to take advantage of the AI revolution.
Reskilling momentum grows, with high accountability
So, what are Hong Kong companies doing about reskilling their teams? Two-thirds (67%) of Hong Kong organizations are actively investing in AI-focused training programs – ranking third in Asia behind Singapore (74%) and Japan (68%), and matching the global average.
However, challenges persist:
- 58% cite limited employee engagement in training
- 50% face budget constraints
- 41% struggle to find expert trainers
While nearly a third (30%) admit they don’t know who champions reskilling effort, 9% of Hong Kong companies currently have cross-functional teams responsible for AI reskilling – the highest globally. This is important as organizations that develop cross-functional teams to design and deliver AI training tend to achieve faster value and speed-to-market.
When ownership is clear, responsibility typically falls to:
- Data & Analytics teams (26%)
- Operations (24%)
- IT & Engineering (21%)
New skills matter the most
As traditional university degrees lose importance, Hong Kong businesses are prioritizing hands-on, practical skills. Only 5% of Hong Kong organizations now view university degrees as essential for entry-level roles – on par with the global average but still higher than Japan (1%), and Singapore (2%).
The top three requirements for entry-level talent in Hong Kong now include:
- Technical certifications in AI tools or coding bootcamps (62%)
- Problem-solving and critical thinking abilities (57%)
- Portfolio of work (56%)
Entry-level hires are increasingly expected to be proficient with AI and technology tools while also demonstrating critical thinking and communication skills from day one. This represents a dramatic shift from academic credentials to real-world capability, with employers valuing agility, continuous learning, and human creativity alongside technical fluency.
Barriers to AI success: Integration, talent, and trust
Despite Hong Kong’s leadership in AI adoption, organizations face significant implementation challenges:
- 55% cite difficulty integrating AI into existing systems as their top challenge – the highest rate among Asian markets and above the global average of 48%
- 43% lack internal AI expertise or skills – second-highest in Asia after Singapore (67%)
- 42% face limited budget or investment in AI initiatives
Hong Kong also faces one of the most severe AI talent shortages globally, with 74% of organizations citing talent shortage as a top barrier to attracting AI specialists. Additional talent challenges include:
- 70% cite lack of awareness about AI roles in the industry
- 59% face unclear career paths for AI roles
- 44% struggle with high salary expectations
To compete for scarce talent, Hong Kong employers are offering premium compensation and unique incentives:
- 63% willing to pay AI specialists 0-25% more than comparable tech roles
- 23% willing to pay 25-50% more
- 14% willing to pay 50% or more above market rates
Beyond higher pay, Hong Kong companies are leaning on additional incentives to attract top AI talent, such as access to cutting-edge tools (50%) and well-defined career paths (42%). Access to cutting-edge tools and projects are crucial for AI professionals to stay relevant and motivated, fostering innovation and making employers more attractive in a tight talent market.
Governance gap
The research also reveals a significant gap in AI governance among Hong Kong organizations – only 16% say they are very familiar with local AI regulations. Other challenges include:
- 50% find Hong Kong’s AI-related regulations unclear – significantly higher than Singapore (32%)
- 26% believe the Hong Kong government needs to be more supportive in helping businesses adopt and scale AI
- 68% see a significant opportunity for the Hong Kong government to take a larger role in fostering the AI workforce through education, training, and public-private initiatives
“Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift,” noted Dr. Chris Marshall, Vice President for AI in Asia Pacific, IDC. “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.”
