Companies Overlook Internal Talent for AI Roles, Study Finds

In a recent exploration of workplace dynamics, new research from Careerminds sheds light on a notable trend in companies' hiring practices, particularly concerning roles in artificial intelligence (AI). While HR leaders feel optimistic about the potential of existing employees to transition into AI-driven positions, companies continue to prioritize external hiring over internal reskilling.

Confidence in Internal Reskilling

The study revealed that a staggering 92% of HR professionals and 88% of people managers believe that their current workforce has the ability to be retrained for AI-related roles. This strong sentiment underscores the untapped potential within many organizations.

Why Are Companies Hiring Externally?

Despite this belief, the findings highlight a paradox. Approximately 51% of HR professionals and 47% of people managers reported that their organizations are opting to recruit outside talent for AI positions, rather than redeploying employees. Only 42% of each group indicated that existing personnel were being reassigned to these new roles.

Conducted in partnership with Censuswide, the study surveyed 595 HR professionals and 547 people managers across the United States between May 15 and 26, 2026, representing firms with at least 500 employees. Mark Saddic, a senior partner at Careerminds, emphasizes this disconnect: “Companies are investing in AI while potentially overlooking one of their most valuable resources: the people they already employ.”

The Challenges of Identifying Skills

One significant reason for the reluctance to reskill is the difficulty in tracking employees’ skills effectively. Limited visibility into individual capabilities was cited by 43% of HR professionals and 34% of managers as a challenge hindering reskilling efforts.

This issue is not unique to the current landscape. In a related move to tackle the skills gap, Pearson, a major player in the education sector, recently acquired Workera, an AI-centric skills platform utilized by organizations including Accenture and the US Space Force.

Interestingly, while 87% of HR professionals and 84% of managers believe their companies are committed to reskilling employees for future roles, the data suggests a contrasting reality is at play, as external hiring persists.

Industry Disparities in AI Hiring

The study also points out significant variations in how different sectors respond to AI workforce needs. In technology and telecommunications, external hiring surpasses internal redeployment by 15%. Conversely, media and entertainment report a more favorable balance, with 56% of HR professionals in that sector indicating they focus on redeploying current employees, compared to just 25% who hire externally.

Financial Implications of External Hiring

It’s important to note that hiring externally often incurs higher costs. According to additional research mentioned in Careerminds' white paper, filling positions from outside the company can be three to five times more expensive than promoting current staff and typically takes up to 20 days longer.

As organizations continue to navigate the evolving landscape of AI, understanding their existing workforce’s potential could lead to more efficient and cost-effective strategies. By fostering internal talent development, companies might not only save on costs but also enhance employee satisfaction and retention.

In conclusion, although HR leaders are enthusiastic about the capacity for internal reskilling, the current trends highlight a need for companies to reassess their recruitment strategies and take advantage of the skills already present within their ranks.