Visa red tape choking AI & tech hiring, study finds

Complex and expensive visa processes are hindering hiring in key technology roles and slowing growth, according to new research from global hiring and payroll platform Deel.

The survey of 1,001 hiring managers in the UK and US found that more than half of businesses in both countries report delays and disruption linked to immigration rules, at a time when demand for skills in artificial intelligence, cybersecurity and data analytics is rising.

Deel's research indicates that 60% of UK firms and 55% of US firms say visa restrictions have led to critical hiring delays. Respondents say this has affected their ability to compete and expand in strategic sectors.

The findings come amid ongoing political focus on AI and digital innovation. Governments in the UK, US and Europe have set out growth plans tied to advanced technology, while also tightening aspects of migration policy.

Costs and delays

The survey highlights the impact of visa rules on business costs and timelines. Nearly half of hiring managers, 49%, say visa-related delays have driven significant increases in costs. More than a third, 35%, say visa issues have slowed market entry. A further 30% report lost revenue as a direct result of visa-linked hiring delays.

Respondents in the US report an average hiring delay of six weeks due to visa processes. UK respondents report an average delay of nearly seven weeks. The data suggests that simplifying processes could cut hiring times by close to a month in both markets.

Jonathan Portes, Professor of Economics and Public Policy at Kings College London, drew a parallel between migration costs and trade barriers.

"We've heard a lot about the damage tariffs are doing to individual businesses and the wider economy. But visa costs, and the associated bureaucratic burdens on business, have very similar impacts - they make it more difficult and more expensive for businesses to hire the workers they need, raising costs and making it harder to expand. This survey shows that these impacts are widespread, especially in key strategic sectors like AI and cybersecurity. If governments want to boost growth, making visas for skilled workers simpler and cheaper is an obvious place to start," said Portes.

Local shortages

The research underlines a gap between demand for advanced digital skills and their availability in domestic labour markets. Two-thirds of hiring managers surveyed, 66%, say they cannot find the skills they need locally. Despite this, 49% say they avoid hiring overseas entirely because visa processes and migration paperwork are too complex, costly and time-consuming.

In the UK, hiring managers report the most acute shortages in cybersecurity, software engineering and AI. These roles align closely with sectors targeted in the government's industrial and technology strategies.

In the US sample, respondents say HR, software engineering and AI are the most challenging roles to fill with local talent. Both markets report that AI skills are among the scarcest specialities.

Human capital policy now sits alongside industrial and technology policy in political debate. Business groups and economists increasingly link the availability of advanced skills with national AI strategies and productivity ambitions.

Regulation and risk

The survey suggests regulatory complexity is a significant deterrent for cross-border hiring. Some 86% of hiring managers say they would face fewer skill gaps if they could hire more easily from overseas. However, 40% cite regulatory complexity as the primary barrier to international recruitment.

Respondents describe a combination of costs, paperwork and uncertainty over approvals. These factors make it harder to plan hiring in fast-moving areas such as AI and cybersecurity, where roles are often time-sensitive and highly specialised.

Visa systems in major economies have come under scrutiny. The US H-1B programme for skilled workers remains oversubscribed and politically contentious. European states have tightened some routes while promoting tech investment and AI research.

Skills diplomacy

The report also looks at which markets businesses would target if cross-border hiring became easier. UK companies say they would look first to the US, Germany and Canada for talent. US firms say they would prioritise hiring from the UK, Canada and Germany.

Deel positions global hiring as a competitiveness issue for high-income economies rather than one of labour cost. It argues that firms seek access to scarce, high-value skills that are distributed unevenly across advanced markets.

Nick Catino, Global Head of Policy at Deel, said high-skilled migration had become inseparable from technology and growth strategies.

"High-skilled migration policy drives AI innovation and growth. Outdated visa systems are costing businesses time, talent, and revenue - the skills exist, but they're trapped behind red tape. Modern talent policy is economic policy, and governments that move faster on skilled visas will lead the next wave of global competitiveness."

Deel is calling for what it describes as "skills diplomacy". The company argues that governments should treat global talent mobility as a core economic lever alongside trade and investment. It says demand for global skills and talent will rise further as AI adoption and digital transformation continue across sectors.