Skills gap prompts companies to boost workforce amidst AI rise

Five in 10 companies plan to expand their headcount in Q3 2024.

In Singapore, AI drives job growth rather than causing job loss, with 50% of companies intending to expand their headcount.

Among industries, the ManpowerGroup found that Communication Services (72%) is the most eager to increase headcount in response to AI and machine learning (ML).

The eagerness is likely driven by the fact that 81% of companies in the sector expect AI and ML to improve their business performance.

The Industrials and Materials sector (80%) shares this view, with 58% planning to boost their workforce in Q3 2024 because of AI and machine learning (ML).

Other sectors most keen to increase headcount amidst developments in AI and ML tools include Energy & Utilities (67%), Transport, Logistics & Automotive (59%), and Industrials & Materials (58%).

A skills gap in adopting AI also fuels the desire of companies to boost their workforce as the tool becomes more prevalent.

According to Manpower Group, 36% of firms in Singapore fail to adopt AI because their workers lack the skills to use the tool effectively.

Other top challenges that firms face in adopting AI include the high cost of investment (42%) and concerns about privacy and regulations (35%).

In Singapore, 54% have adopted AI, whilst 55% use generative conversational AI.

Some have adopted ML (53%) and virtual reality (41%).