AI is creating demand for skills faster than any domestic labor market can produce them. Small and medium businesses, in particular, are now urgently looking for specialized AI and ML-related roles that are difficult to fill.
According to Multiplier and TriNet’s report The Global Talent Squeeze, 60% of US small businesses say AI is driving demand for skills they don’t currently have in-house. That gap is pushing companies to look beyond their own borders.
However, hiring and employing candidates from overseas is no mean feat. Here is a look at where that talent actually is, and what it takes to employ it compliantly once you find it.
The AI positions companies are hiring for
While the tech talent shortage is nothing new, AI has accelerated this gap immensely. The roles behind this shift are specialized positions that require a high level of expertise:
- AI Engineers, who build and deploy machine learning systems in production
- Machine Learning Specialists, who design and refine the models themselves
- AI-fluent domain experts, who combine deep industry knowledge with the ability to apply AI within it
None of these are roles a company can train a generalist into on a reasonable timeline. That’s the core of the problem: domestic demand for this expertise is outpacing what the US education and training pipeline can supply, and the gap isn’t closing on its own.
Where to find AI talent
55% of small businesses have begun searching abroad to access AI skills they can’t find at home. But where are they hiring, exactly?
Small businesses hiring tech talent through an Employer of Record (EOR) are landing in the same handful of countries again and again.
Platform data from Multiplier shows that the top destinations are the USA (38%), Canada (35%), India (17%), and Italy (7.5%). These results are directional and reflect Multiplier’s customer base, not the broader EOR market, but still provide an interesting glimpse into where companies are hiring.
Each of the top destinations for tech talent has its own draw:
- India has built the world’s fastest-growing AI talent base, with a large and expanding pool of engineers trained specifically in AI and machine learning. Hiring in India through an EOR gives businesses access to that pipeline without setting up a local entity.
- Canada has developed a world-leading AI research ecosystem, anchored by strong university programs and a research community that has produced deep applied AI expertise. Hiring in Canada through an EOR is a common route for companies looking to tap into that base.
- Italy, as Europe’s second-largest manufacturing hub, has produced a deep pool of applied AI specialists, professionals who’ve built AI systems for industrial and manufacturing contexts rather than pure research settings. Hiring in Italy through an EOR opens up access to that specific kind of applied expertise.
These same three countries are where Multiplier owns legal entities outright, alongside a wider footprint of 160+ countries for businesses hiring beyond these markets.
How to hire AI engineers compliantly
AI has made sourcing talent easier than ever. It’s fairly straightforward to recruit and select AI-fluent candidates, even across borders. The hard part is employing them in a compliant way.
82% of small businesses have failed or expect to fail to onboard a global hire due to compliance issues. The good news is that it can be done, and the easiest way is generally through an Employer of Record (EOR).
An EOR is a third-party organization that legally employs workers on a company’s behalf in a country where that company doesn’t have its own legal entity. The EOR handles local payroll, tax withholding, benefits, and employment law compliance, while the worker operates as part of the hiring company’s team day to day.
For a small business trying to hire an AI Engineer in India without opening an Indian subsidiary, an EOR (like Multiplier) makes that legally possible.
As a Global Exchange for Work, Multiplier provides the infrastructure to hire compliantly in key AI tech hubs. A small business hiring an AI Engineer in Bangalore, an ML Specialist in Toronto, or an applied AI specialist in Milan can do it through one partner instead of piecing together local counsel, a payroll vendor, and a benefits provider on their own.
What to do next
The skills gap driving small businesses to hire abroad isn’t going away. AI is reshaping what companies need faster than any domestic pipeline can keep up, and the businesses that move first on this will keep finding themselves back in India, Canada, and Italy for the same reason: that’s where the talent is.
Finding that talent was never really the challenge. Employing it properly is. The small businesses closing this gap successfully are the ones treating compliant hiring as part of the growth plan from the start, and not figuring it out after an offer’s gone out.
For the full picture on how AI and visa regulations are reshaping small business hiring, read our full report The Global Talent Squeeze.
FAQs
What is an Employer of Record (EOR)?
An EOR is a company that legally employs workers in a given country on behalf of another business, handling payroll, tax, benefits, and compliance so the hiring company doesn't need to set up its own local entity.
Why are small businesses hiring AI talent internationally instead of training internally?
The roles in highest demand, AI Engineers, ML Specialists, and AI-fluent domain experts, require specialized expertise that takes years to develop. Domestic training pipelines can't produce that expertise fast enough to meet current demand, so businesses are looking to markets where the talent already exists.
Why are India, Canada, and Italy leading AI hiring destinations?
Each has developed a distinct concentration of AI expertise: India has the world's fastest-growing AI talent base, Canada has a leading AI research ecosystem, and Italy's manufacturing strength has produced a deep pool of applied AI specialists.
Is international AI hiring only for large enterprises?
No. Multiplier's own platform data shows small businesses (1 to 200 employees) actively hiring AI and tech talent through EOR in the USA, Canada, India, and Italy, using EOR infrastructure specifically because it removes the need to establish local entities themselves.
