In 2025, **AI advancements** prompted many employers to adopt a cautious, wait-and-see stance on hiring. However, emerging data indicates a shift in 2026, with companies actively seeking talent equipped with specific skills to harness AI effectively.
Upwork's **In-Demand Skills 2026** report, released on February 4, 2026, reveals that demand for AI-related skills on the platform surged more than twofold year-over-year. Specifically, skills explicitly referencing AI grew by **109%**. Rather than broad AI generalists or builders of core AI systems, the spike centers on **applied AI**—integrating the technology into existing workflows and roles.
The most explosive growth appeared in:
- **AI video generation and editing** (+329%)
- **AI integration** (embedding AI into business processes, +178%)
- **AI data annotation and labeling** (preparing data for AI training, +154%)
Other notable risers included **AI image generation and editing** (+95%) and **AI chatbot development** (+71%).
At the same time, employers increasingly value **human-centric skills** that complement AI. Nearly half of business leaders report willingness to pay a premium for freelancers demonstrating creativity, innovation, emotional intelligence, resilience, and similar traits. Dr. Gabby Burlacu, Upwork's senior research manager and licensed organizational psychologist, notes that while AI dominates fastest-growing demand lists, it's not about replacing humans—it's about augmentation.
"Business leaders are seeking human judgment, creativity, and innovation," Burlacu explains. "When asked what skills are becoming critical in an AI world, learning agility and adaptability ranked higher than building or engaging with AI tools."
This pattern reflects a broader trend: After initial hesitation with disruptive AI tools, employers are moving beyond experimentation. They now understand AI's strengths and limitations, shifting focus to how it can enhance existing domains rather than eliminate roles entirely. Hiring is rebounding as companies pursue talent that can maximize AI's impact through domain expertise and uniquely human abilities.
This aligns with insights from McKinsey's report, *Agents, robots, and us: Skill partnerships in the age of AI* (published in late 2025). Analyzing thousands of job skills, McKinsey found that roughly **70%** of skills can be enhanced by AI while still requiring human input, **12%** remain purely human domains, and only **18%** are fully automatable. Coauthor Anu Madgavkar emphasizes that workers won't need to code AI from scratch but will use it as a collaborator to boost their own effectiveness—reimagining workflows, not just tasks.
Workday's *Elevating Human Potential: The AI Skills Revolution* report echoes this, with **83%** of global employees reporting that AI has improved their ability to learn new skills. As Aashna Kircher, Workday's group general manager of CHRO products, points out, technical proficiency remains important, but human elements like ethical judgment, emotional intelligence, relationship-building, and leadership are gaining outsized value.
In short, 2026 marks a pivot toward an **AI-augmented human workforce**. Employers seek professionals who blend AI fluency—especially in application and integration—with irreplaceable human strengths. This isn't mass replacement; it's evolution, where AI handles routine elements, and humans drive creativity, context, and innovation. Workers who adapt by upskilling in these hybrid areas stand to thrive in the rebounding job market.