Is the Global Race for AI Talent Creating New Hiring Risks?

The hunt for AI talent has turned into a global contest, where companies are searching around the world for engineers and data scientists. This is becoming more evident as demand begins to overpower local supply. Multiplier’s Global Hiring Gap report found that 46% of companies are hiring internationally to secure scarce skills, with AI sitting at the top of the list.

LinkedIn’s 2026 Labour Market Report adds another telling detail. AI engineering talent is 8 times more likely to relocate internationally than other roles. That mobility shows how intense the competition has become.

Jeanne Meister, Future of Work Strategist, put it like this: “AI fluency is not optional; it is now an expectation for all employees, no matter their role or level. In 2026, more companies beyond tech will require AI fluency as a baseline.” AI skills are no longer niche. They are becoming expected in everyday roles.

What Happens When Hiring Moves Faster Than Compliance?

91% of companies told Multiplier that international hiring helps them fill roles faster. But the same report, based on a survey of 500 senior decision makers in the US, UK, Singapore and Australia, shows how fragile that speed can be.

Only 8% of companies say they are fully compliant with international tax and labour laws. That leaves 92% exposed to risk. In practical terms, 46% have failed to onboard international hires because of compliance issues. Almost half lost talent at the final hurdle.

Shalini Sugumaran, Head of Legal and Compliance at Multiplier, explained the fallout: “Failure to onboard may result in losing sought-after talent to a competitor. And if a candidate has already left their previous role but cannot be onboarded, the company may also need to compensate them for lost wages.”

Payroll is often where problems first appear. 53% struggle with international tax compliance and 51% with managing multiple vendors. Each new country adds new reporting duties and classification rules. A small contract error can turn into a legal dispute.

Is Immigration The Hidden Barrier In The AI Boom?

Visa systems are influencing hiring decisions as much as skills. 33% of companies cite immigration and visa restrictions as a serious obstacle. Policies differ sharply between regions and can change quickly.

Amanda Frayne, Chief Legal and Compliance Officer, said: “Immigration policy has become less predictable, more fragmented, and more tightly enforced across regions. Mobility constraints now sit directly in the critical path of growth.”

AI may make it easier to find talent anywhere. Employing that talent legally is a different task.

Can AI Clean Up Its Own Mess?

Many companies are now turning to AI to manage the compliance load. 38% want AI enabled systems to automate compliance checks and documentation. Another 38% want greater efficiency in HR processes. In global payroll, 44% want AI to help ensure compliance and 45% want it to detect payment errors.

Amanda Halle, AI Facilitator, captured the tension: “The real shift in global hiring is from reactive compliance to proactive system design. When governance, decision rights, and workflows are aligned, AI becomes an amplifier of good structure and consistent execution. Without that systems clarity, AI just accelerates confusion.”

Aaron McEwan, Behavioural Scientist, added: “We can expect global demand for talented people to intensify as AI adoption matures. AI will also make it increasingly easy to find those talented people, wherever they’re located. However, finding them is one thing. If they can’t actually be employed because of restrictive immigration policies, rigid return to office mandates, or the absence of global hiring infrastructure, companies simply won’t benefit from an increasingly fluid global talent market.”

AI has opened the world’s talent pool. It has also exposed how unprepared many companies are to hire internationally without running into costly compliance risks.

How Is The Global AI Race Bringing Risks?

Experts give us more insight behind how these risks come about…

Our Experts:

• Charlie Harris, Chief Marketing Officer, Connective3
• Joann DeLanoy, Managing Director, Toaster
• Sagar Khatri, CEO, Multiplier
• Barb Hyman, Founder and CEO, Sapia.ai
• Sheila Flavell, COO, FDM Group

Charlie Harris, Chief Marketing Officer, Connective3

“Working within a digital marketing agency all candidates have to have a baseline of AI competency in order to deliver for our clients. The challenge however is when candidates rely on AI for their applications, compromising their unique voice and personality and over representing their skills and capabilities.

“We tend to filter out candidates who rely too heavily on AI for their applications, these are easily recognisable as they all tend to follow a very similar flow, with little information about the applicant’s individual attributes and expertise. Essentially, ‘Chat GPT tailor my skills to this job advert’ – if 100 clients do this then you get the same content back for each candidate.

“The candidates who will be successful in today’s job market however are the ones who blend the best of AI with human content. We believe that it is the blend of both that truly allows candidates to stand out, showcasing how AI enhances your individual expertise to drive professional advantage. The candidates who can blend both will ultimately be the ones who achieve career success.”
 

Joann DeLanoy, Managing Director, Toaster

“We are seeing a widening of the individual skills matrix and a flattening of the team structure. People, with the help of AI, are now expected to be experts at a wider variety of skills. Some skills are adjacent to their current skills – like a graphic designer producing motion assets or a strategist leading on research. Some skills are outside their typical role – like a product manager shipping code or a product marketer directing creative ads.

“Although AI enables everyone to deliver as wide as they can prompt, should they be expected to? In doing so we lose subject matter experts and the understanding of appropriate nuance. We create individuals who suffer from AI fatigue rather than possess cognitive skills. Ultimately we are creating and hiring for generalists who are more focused on doing everything rather than anchored in their passion.”

Sagar Khatri, CEO, Multiplier

“Global demand for AI talent is accelerating faster than most organisations’ ability to manage the complexities of hiring across borders. As companies expand their search internationally, they are entering regulatory environments that differ significantly in tax, labor, payroll, and immigration requirements. Without the right systems and expertise in place, this creates real exposure.

“We’re seeing a clear gap between intent and readiness. Businesses want access to the best AI talent wherever it exists, but many underestimate the operational burden of complying with local laws in each jurisdiction. In fact, only 8% of companies report being fully compliant with international tax and labor laws, highlighting just how widespread this risk has become. Issues such as worker classification, permanent establishment risk, visa sponsorship, and data protection obligations can quickly become liabilities if handled incorrectly.

“At the same time, AI roles are highly specialised and globally distributed by nature, which increases the likelihood of cross-border hiring. When companies rely on fragmented processes or manual compliance, hiring slows down or fails altogether, and in some cases leads to penalties or reputational damage.

“To move at the speed the AI economy demands, companies need infrastructure that embeds compliance into every stage of global hiring. Without that, the risks will continue to scale alongside the opportunity.”

Barb Hyman, Dounder and CEO, Sapia.ai

“As demand for AI talent grows, hiring teams are struggling to separate real expertise from strong presentation. Generative AI is being used by candidates to create and submit polished applications, but also by hiring teams to scan traditional CVs for the experience that they are looking for. What this means is that companies run the risk of hiring the best-presented candidates, often overlooking those who might be more capable.

“This is a particularly prevalent challenge when it comes to AI talent because many of the AI-focused roles are newly created and therefore it’s impossible for candidates to have accrued experience in directly relevant roles. To bridge the gap between experience and potential, companies need structured assessments that test how candidates think and respond, not just how they write about themselves. AI-powered interviews with consistent questions and clear benchmarks offer a more accurate view of real skills.

“In an AI-driven job market, hiring needs to focus on evidence of applicable capability where individuals from diverse backgrounds can bring new skillsets and new ways of thinking to AI-focussed job roles. The quantity of job roles that require AI talent is only likely to increase, so effective hiring will hinge on overlooking experience in favour of potential.”

Sheila Flavell CBE, COO, FDM Group

“Businesses continue to be squeezed by economic volatility, from tax changes to sick pay alterations and high interest rates, restricting confidence in hiring, which has contributed to the job market slide.”

“Worryingly, it’s the graduate market that feels hiring slumps the hardest, particularly during the era of AI. Companies are either not hiring or pivoting to skilled workers who can instantly drive growth.”

“Being AI-ready is becoming a baseline for everyone. Employers aren’t expecting every young person to be a machine learning engineer or build models, but they are increasingly expecting them to be comfortable using AI tools within work, to understand their limits and risks, and to be able to explain how and why they used them. The next step is to incentivise businesses to take on graduates who have developed their AI skills, building the future talent pipeline that can lead the UK’s AI ambitions for decades to come.”