Most Middle East companies lag others in using AI for hiring talent: Study

Dubai: Employers in the Middle East are falling behind in unlocking the potential of artificial intelligence and skills-based talent strategies, according to Mercer’s newly released 2024/2025 Global Talent Trends Study.

The report, based on responses from nearly 1,800 HR professionals worldwide, reveals that while digital disruption is accelerating globally, many regional companies are just beginning to adapt. Specifically, 67% of organizations in the Middle East say they are only “exploring or just getting started” with using AI to guide talent deployment, leaving significant untapped potential on the table.

Even more telling, AI has plummeted from the third to the twelfth spot in organizational priorities over the past year, despite 97% of firms with advanced skills-based strategies reporting strong returns. Only 28% of regional firms are actively using generative AI, highlighting a disconnect between awareness and implementation.

“There’s a clear opportunity here,” said Najla Najm, Careers Leader for Mercer Middle East. “Our findings show that a large segment of the workforce is eager to upskill—especially in digital and tech areas. Companies that take action now can align better with the UAE’s broader growth goals and position themselves to win the talent race.”

The study also exposes a persistent talent gap, with 1 in 4 Middle East employers reporting hiring difficulties that have directly impacted business performance.

Tarek Lotfy, President of Mercer for India, Middle East and Africa, said, “Skills-powered organizations are more resilient and innovative. This directly supports the UAE Vision 2030 mandate to develop a future-ready, knowledge-based economy. The moment to invest in people is now.”

Globally, the report also notes that economic uncertainty and shifting social expectations are driving demand for more agile workplace structures and sustainable growth strategies. For UAE businesses, this means integrating long-term workforce planning with national priorities like digital competitiveness, inclusion, and productivity.

Bottom line: AI and reskilling aren’t optional—they're foundational. As competition for skilled talent intensifies, the companies willing to make bold, tech-driven people investments today are the ones most likely to thrive tomorrow.