AI causing ‘world’s biggest’ tech skills gap, report

AI jumps from the sixth most scarce tech skill to the first in just 18 months, says Harvey Nash

Demand for developers skilled in AI has surged by such an extent that not only has it gone from the sixth most in-demand skill to the first in just 18 months, according to tech leaders, but the dearth of qualified techies represents the biggest tech skills shortage in 15 years.

That’s according to recruitment firm Harvey Nash in its 2025 Digital Leadership Report, the 26h annual report on tech skills shortages since 1998.

Its survey found that 52% of tech leaders questioned report an AI skills gap compared to just 20% in the same survey in 2024. That comes after two years of rocketing investment in AI by corporates with 90% of corporates now either piloting AI in some capacity or investing in AI developments, large or small.

However, despite the big increase in AI pilot projects and roll-outs, two-thirds of respondents claim not to have achieved a measurable return on investment (ROI) as a result, but this varies according to corporate size. Larger organisations, the survey suggests, are more likely to report a measurable ROI – with more than half (53%) claiming a positive return.

For IT departments and technology teams, investment in AI won’t just mean an influx of fresh talent, but also a change in operating models as organisations work out how to both upskill staff and find a place for AI as a supplement to IT department skills.

The good news for IT staff, though, is that the organisations investing the most in AI are also increasing their tech headcounts – 24% more likely, according to the survey. But in the long-term there is also the expectation among tech leaders that up to one-in-five technology jobs could be fulfilled by AI.

Rather than an overall reduction in headcount, Harvey Nash suggests, it will mean a shift in terms of the kind of people – and skills – they will be recruiting.

Moreover, now is the time for tech staff to consider adding AI to their resume in some way. The survey suggests that people with some AI experience – say, three years – are more likely to be considered than potential tech staff with more overall experience, but very little in AI.

In addition, it should be noted that tech leaders that can boast running AI-rich IT departments also enjoyed higher pay rises, as Harvey Nash’s Helen Fleming and Peter Birch told Computing earlier this week.

And, intriguingly, perhaps, the survey suggests that organisations that engage with Gen Z – people born from the mid-to-late 1990s – are making more progress in AI compared to the global average.

But, of course, there’s a lot more to the technology industry than AI.

Demand for staff with cybersecurity skills has also increased – as it should following a string of debilitating cyberattacks – but demand for software developers has declined with the assumption that AI is filling the gap. More ominously, perhaps, the survey also highlighted an increase in organisations admitting to succumbing to a cyberattack – a disturbingly high 29%.

Enterprise/solution architecture skills saw the biggest fall in demand, with the growth in agile methodologies and use of cloud technologies reducing the need for heavyweight roles in this field.