AI Is Splitting the Global Job Market in Two, PwC Study Finds

Companies using artificial intelligence to amplify human skills are pulling decisively ahead of those using it primarily to cut costs, according to PwC’s 2026 AI Jobs Barometer. The study of over a billion job postings across 27 countries reveals a sharp divergence: firms pursuing AI for augmentation saw significantly higher productivity, employment growth, and wage increases compared to those focused purely on automation.

Every AI development in Singapore adds another data point to the city-state’s transformation. The findings carry particular weight here, where Singapore’s AI salaries are climbing up to five times faster than the broader market and the public sector already pays a 107% premium for AI talent. The PwC study provides the first global framework for understanding which AI strategies actually pay off — and the answer has direct implications for Singapore’s workforce planning and SkillsFuture initiatives.

The data is stark. Specialised AI roles grew 69% in 2025 compared to 9% for the overall job market. “Senior competency” roles requiring judgement, empathy, and ethics expanded 35% since 2019, while entry-level roles lacking those requirements shrank 10%. The AI skill wage premium widened to 62%, reaching 118% in consumer markets. Companies most exposed to AI increased headcount by 52% since 2018 versus 36% for the least exposed, and high AI-exposure firms posted 34% productivity growth against 24% for their peers — with the top fifth achieving a staggering 163% productivity surge.

Perhaps most telling: 49% of CEOs expect AI to reduce junior hiring over the next three years, while only 12% expect the same for senior roles. PwC’s global chief AI officer Joe Atkinson noted that firms seeing the greatest returns “are using it to amplify human expertise, accelerate innovation and create entirely new sources of value,” pulling ahead of companies focused mainly on automation. Pete Brown, PwC’s global workforce leader, warned that AI is “removing some of the routine work that once acted as an apprenticeship,” increasing demand for judgement and leadership much earlier in careers.

Why it matters for Singapore: As a small, open economy with no natural resources beyond its people, Singapore’s prosperity depends on getting this transition right. The PwC data suggests that SkillsFuture’s emphasis on reskilling — rather than just automating — aligns with what’s working globally. But the widening premium for human skills also means the gap between workers who can leverage AI and those who can’t is growing faster than many policymakers anticipated. For Singaporean employers, the message is clear: invest in amplifying your people’s expertise, not just in replacing their roles.