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 by Infragistics.
In fact, 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.
“The demand for AI and Python expertise is growing faster than the talent pipeline can supply it,” says 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.”
Key takeaways:
· Hiring staff with AI skills was a priority for 89% of organizations in 2025 and has jumped 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.
· 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.
· Half of respondents cite responsible AI use as a major challenge, while 48% point to security and privacy risks.
· Python ranks highest in-demand job to fill, 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.
· 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.
· 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.
· 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.