Talent shortages are the single biggest challenge facing technology leaders in 2026, as artificial intelligence rapidly reshapes hiring priorities, according to the new Reveal 2026 IT Talent Survey, released today by global software leader Infragistics.
Eighty percent (80%) of technology leaders reported using AI in software development in 2025, and 77% named expanding AI use as their top strategic priority for 2026. This shift to AI is translating directly into job creation. Nearly half of organizations (48%) say AI adoption has led to new roles, compared with just 18% reporting AI-related layoffs.
Hiring staff with AI skills was a priority for 89% of organizations in 2025 and it has risen to 91% for 2026, underscoring the need for specialized talent. AI is also delivering measurable business value with two-thirds (66%) of organizations that improved productivity in 2025 attributing those gains to AI integration.
The survey reveals that organizations are struggling to fill several critical technical roles. AI engineers top the list of hardest-to-fill roles, cited by 39% of respondents, followed by cybersecurity engineers at 38%. Cloud engineers (25%) and data analytics professionals (24%) also rank among the most difficult positions to staff. Only 7% of respondents report no hiring difficulties, underscoring the widespread technology talent gap.
“These shortages reflect the complexity of modern technology environments now that AI is part of everyday software development,” said Casey Ciniello, Reveal and Slingshot Senior Product Manager, Infragistics. “Organizations are discovering that adopting AI is easier than finding the people who know how to build, deploy and secure it.”
As AI adoption expands, so do concerns around ethics, governance, and security. Half of respondents cite responsible AI use as a major challenge, while 48% point to security and privacy risks. In response, organizations are strengthening governance frameworks and seeking professionals with expertise in areas such as data privacy, bias mitigation, explainability, and secure AI deployment.
Beyond specific roles, the Reveal survey identifies the technical skills most in demand across organizations. Python ranks highest, cited by 56% of respondents, reflecting its central role in AI development, automation, and data science. Artificial intelligence and machine learning skills follow at 47%, while Java (34%) and cybersecurity expertise (33%) remain widely sought after. Competition for highly skilled professionals continues to intensify.
“The demand for AI and Python expertise is growing faster than the talent pipeline can supply it,” said Jason Beres, COO of Infragistics. “Organizations aren’t just looking for coders anymore. They need engineers who understand data, automation, and AI systems. The real competitive advantage is access to skilled talent.”
Half of all respondents (50%) report difficulty recruiting and retaining skilled technical staff, while 80% say talent shortages are already impacting operations. Among large enterprises, 47% indicate that workforce gaps are directly limiting their ability to meet business goals.
The survey also reveals a preference for senior-level talent. While 30% of organizations plan to hire in 2026, only 12% expect to focus on entry-level talent. Approximately 70% prioritize senior-level professionals, particularly those with AI expertise.
This trend reflects the increasing complexity of modern development environments, where integrating AI, managing cloud infrastructure, ensuring compliance, and securing data require advanced technical experience.
The growing reliance on data-driven decision-making is also reshaping workforce demand. The survey finds that 85% of organizations use business intelligence tools internally, while 76% deploy embedded analytics within applications. Additionally, 84% expect to increase their focus on analytics in 2026.
As analytics becomes more deeply embedded in business operations, organizations are competing for data analysts, BI developers, and analytics engineers capable of managing data pipelines, building dashboards, and integrating insights into applications.
“Analytics is no longer confined to dashboards. They are being embedded directly into the applications people use every day,” said Ciniello. “That shift is driving demand for professionals who can connect data pipelines, analytics, and user experiences inside operational systems.”
The Reveal 2026 IT Talent Survey underscores a technology labor market defined by rapid innovation and growing specialization. While AI is reshaping job roles, it is not eliminating them. As digital transformation continues, professionals who combine deep technical expertise with adaptability and ethical awareness will be best positioned to succeed.
The Reveal 2026 IT Talent Survey was conducted in partnership with Dynata in December 2025. The survey includes responses from 250 senior technology leaders, including C-suite executives, CIOs, CTOs, VPs, IT managers, and directors responsible for software development and business intelligence across mid-market and enterprise organizations.
