Gen AI may herald a significant shift in remote work hiring patterns. As it continues to bridge gaps in the output quality of knowledge work, the cost advantage of hiring foreign workers becomes increasingly attractive. The leveling-up effect of gen AI enhances productivity of all workers, and as a result strengthens foreign remote workers’ competitive advantage, driving companies to expand their talent search globally.
Given generative AI’s ability to elevate skills across a range of knowledge work categories, a key question arises: does it make domestic and foreign remote workers more interchangeable? Could, for example, U.S. firms substitute American workers with AI-enhanced talent from regions with lower labor costs?