While the technology has promised to boost efficiency and automate repetitive tasks, the swift pace of AI development is creating a challenge for companies trying to find the skilled workforce necessary to keep up. The rising cost of this talent is putting pressure on IT hiring teams, according to Brittany Lutes, research director at Info-Tech Research Group.
The 2025 Talent Trends report from Info-Tech highlights two main concerns for enterprise hiring managers: the cost of securing the right talent and the lack of skilled workers. Even when companies can afford top-tier talent, finding such individuals is becoming increasingly difficult, Lutes explained.
“If they aren’t continually updating their technical skills, what they’re doing risks becoming obsolete,” Lutes said.
The issue lies in the fact that many recent university graduates and job seekers simply aren’t prepared for the rapidly evolving demands of businesses, Lutes noted. The skill gap spans across AI and machine learning as well as related areas such as cybersecurity, data analysis, compliance, cloud computing, and infrastructure.
“Four years to complete a degree, but in that time, the curriculum would have likely changed twice before they even graduate,” Lutes said.
As a result, many companies are turning to early-career programmers who demand lower salaries and pairing them with AI-assisted coding tools, while relying on senior developers to correct any mistakes, said Larry Kodali, CEO of AI hiring firm OptimHire.
This helps enterprises cut costs, but it also leaves mid-career developers struggling to find roles, Kodali pointed out. “Mid-level developers are having a tough time,” he said. “Repetitive, low-level tasks can be handled by fresh developers using these coding tools.”
This puts pressure on employees to rapidly upskill, said Kodali. While there’s always been a shortage of highly-skilled senior developers, “the demand is even higher now, especially with the rise of AI tools.”
Mid-level job seekers need to “either upskill quickly for solving more complex problems or adapt to the new reality and learn the latest tools, potentially starting at a lower salary,” Kodali added.
However, Lutes suggests that companies shouldn’t place the burden of skill development entirely on workers. Organizations can offer practical training and career growth opportunities for early- and mid-career employees, creating environments where people can experiment and learn on the job.
This approach not only trains employees in the specific skills companies need but may also be more cost-effective than hiring new talent. Retaining and developing talent tends to be cheaper than hiring, Lutes said. “If you invest in developing an individual and giving them a clear career path, it will likely cost you less than going to the market to find someone new,” she explained.
Looking ahead, Lutes emphasized the need to rethink hiring strategies. “Rather than trying to fill a gap with a specific job title, we should focus on what we really want to achieve and how our organizational structure will evolve. I believe development will be a more effective solution than just acquiring talent.”