Why AI hiring governance matters more than you think

The research shows that policies governing AI use in hiring and recruitment are often the lowest priority for organizations. What kind of guardrails should HR teams implement to address this blind spot?

Regulations governing AI in hiring vary globally. Some hiring-specific proposals focus on preventing discrimination; others address transparency or algorithmic bias. The smartest approach for companies operating across borders is to adopt consistent guardrails globally, even in markets without AI-specific regulations yet. There’s a burden on industry here: it’s better to build guardrails from the start than to scramble to retrofit them as you expand into new markets.

The research highlights quite a lot of businesses being unfamiliar with or confused by local AI regulations. What are the highest-priority legal and compliance risks from this governance gap?

Compliance requires a cross-functional effort where legal, risk, and compliance teams all need to be aligned. Privacy laws, consumer protection rules, and whistleblowing regulations already on the books often extend to AI. It's not an either-or approach that teams need to focus on. So don’t wait for AI-specific regulation in every country; existing frameworks likely already apply. That said, smart companies engage with governments proactively. Policymakers want to understand how industry is using AI. Bringing them along on the journey and showing them how you’re approaching the technology responsibly actually leads to better policy outcomes than waiting for regulation to catch up.

The data suggests stark differences in how markets are managing disruption. Why do you think some countries pivot toward reskilling and role transformation rather than simply reducing headcount?

Our survey of 5,500 business leaders across 22 countries found that 91% say AI adoption is already changing or displacing job roles within their companies. But regional responses vary. Governments around the world worry about job losses, but some use policy to discourage headcount, while others take a free-market approach. What’s universal is that every country is looking for ways to reskill and upskill its workforce to prepare for the jobs of tomorrow. Deel's proprietary research shows a 3x increase in AI-related job titles on Deel in the last few years, and a 40% increase in companies opening new AI roles in 2025.

There is a concern that this could impact entry-level jobs. Stanford and Yale studies reach different conclusions on whether AI is the primary driver of entry-level job losses. The research is still muddled, but the concern among policymakers is not.

The research reveals that the traditional academic degree is losing its status as the primary credential for entry-level roles. What's the most surprising non-traditional hiring signal replacing the degree?

Skills-based hiring has been trending for a while, and AI is likely accelerating it. What hasn’t changed is the importance of soft skills, such as the ability to build relationships, work under pressure, or lead teams. Candidates that marry technical skills with soft skills—which have always been important in hiring—that combination is becoming the real differentiator.

The research identifies that entry-level task automation leads to fewer opportunities for new talent to gain on-the-job experience. How can businesses and governments prevent a hollowed-out leadership pipeline as AI automates entry-level work?

The threat to entry-level jobs, particularly white collar jobs, is one of the biggest risks that policymakers are talking about regarding AI acceleration. There's a case to be made that if you're not using AI, you are losing out. By avoiding AI adoption and literacy, you will not have the same opportunities in the workforce. That means it's really an educational matter for schools. They need to build up that AI literacy and experience and get it into the hands of the future workforce as much as possible. Making sure students have that AI literacy and knowledge will allow them to demonstrate not just the skills, but the productivity and efficiency that'll increasingly be expected of entry-level workers. Once hired, workers build leadership through soft skills and in-person collaboration and mentorship.

IDC InfoBrief, commissioned by Deel, “AI at Work: The Role of AI in the Global Workforce” - Doc #AP242540IB, November 2025