The tech hiring landscape is increasingly polarized—flooded with applicants for certain positions while facing severe shortages in high-demand specialties. A new report from Indeed, released Monday, reveals how the rapid rise of artificial intelligence is fundamentally reshaping which skills and roles are in demand—and which are fading away.
While entry-level and generalist tech roles often attract a surplus of candidates, employers are struggling to fill positions in cloud computing, data analytics, and AI development. “What began as a cyclical downturn in tech hiring may now be entering a new phase—one defined by AI adoption, heightened skill requirements, and declining demand for traditional entry-level roles,” Indeed noted in its analysis.
The findings draw on a combination of job posting data from Indeed and Glassdoor, plus a YouGov survey of 1,035 U.S.-based tech professionals—primarily in software and IT—who responded to an online questionnaire between late May and early June 2025.
AI Is Reshaping—and Eliminating—Tech Roles
Generative AI isn’t just changing how work gets done; it’s altering the very structure of tech teams. According to Indeed, the following roles have been most frequently cut during AI-driven reorganizations:
- Software engineers and developers
- Quality assurance (QA) engineers
- Product managers
- Project managers
Yet as some roles shrink, others are expanding. Companies are redirecting resources toward emerging priorities, with the biggest growth seen in:
- Cybersecurity
- Data analytics and analysis
- Dedicated AI teams
In-Demand Skills Reflect the AI Era
Job postings in the first half of 2025 highlight a clear shift in employer priorities. The most sought-after technical skills include **Python**, **SQL**, and **Amazon Web Services (AWS)**. Meanwhile, job listings are surging in fields tied to AI infrastructure and modern software delivery—particularly **AI development**, **Google Cloud Platform (GCP)**, and **continuous integration/continuous delivery (CI/CD)** pipelines.
Indeed’s data also shows that employers are moving beyond isolated tools and instead seeking **clusters of complementary skills**. For example:
- **Python**, **machine learning**, and **data analysis** now frequently appear together.
- **AWS**, **DevOps**, and **CI/CD** are commonly bundled in infrastructure and platform roles.
This reflects a broader expectation: today’s tech professionals must operate across interconnected domains, not just master a single language or platform.
The Rise of AI-Augmented Roles
Generative AI is accelerating the evolution of traditional tech jobs. Coding-centric roles are being redefined to include **prompt engineering**, **AI system integration**, and **responsible AI deployment**. Rather than replacing engineers, AI is becoming a collaborative tool—enhancing productivity, refining data insights, and enabling faster innovation.
But this shift is widening the gap between available talent and employer needs. With competition fierce for specialists in AI, cloud, and data, companies can no longer rely on generic hiring strategies. Indeed recommends tailoring recruitment efforts to what top candidates truly value: opportunities for **career advancement**, **impactful projects**, and **cutting-edge technology exposure**.
Upskilling Is No Longer Optional
To close the talent gap, organizations are turning inward—identifying employees with adjacent capabilities and creating clear pathways into high-demand roles. Upskilling isn’t just a perk anymore; it’s a strategic necessity. Indeed emphasizes that internal mobility and targeted training are among the most sustainable ways to keep pace with the rapidly evolving tech landscape.
In short, tech talent shortages aren’t disappearing—they’re transforming. The bottleneck has shifted from headcount to **high-value, AI-era skills**. Companies that adapt quickly—by rethinking roles, reimagining hiring, and investing in their existing workforce—will be best positioned to thrive in this new phase of tech hiring.