Three-quarters (75%) of tech hiring leaders at companies using AI say they are hiring AI talent too quickly, without taking the time to build sustainable pipelines of qualified and high-potential candidates, per General Assembly’s State of Tech Talent 2025.
“Too many companies are approaching AI with the same old playbook: layoffs and rapid hiring sprees with no sustainable talent strategy,” said Daniele Grassi, CEO of General Assembly. “Firms are competing for an ever-shrinking pool of skilled candidates when they should be investing in developing their own qualified talent. Upskilling and reskilling will be absolutely essential to a future where every role, at every level, requires AI skills.”
Hiring candidates with AI skills is already more challenging than non-AI tech roles, according to 63% of recruiting leaders, and the shortage is impacting the cost of hiring. More than two-thirds (68%) say they typically agree to higher salaries during negotiations with AI-skilled candidates, up from 64% last year. Yet the percentage of companies that upskill existing employees to fill new tech roles–typically more cost-efficient than hiring–has remained stagnant since 2023, at 27%.
At the same time, 95% of HR professionals say it’s harder today than three years ago to find qualified candidates with both the technical and soft skills to succeed. In the United States, hiring managers pointed to communication (39%), problem-solving (37%) and teamwork skills as being hardest to find, while in the UK it was time management (40%), problem-solving (39%) and flexibility (38%). In Singapore, some tech candidates lack an openness to learning (43%), time management (40%) and flexibility (39%).
As many companies deprioritize DEI, HR leaders worry that a widening talent gap could be an unintended consequence. An overwhelming majority (85%) fear workforce impacts like higher turnover, lower engagement and declining morale, while 76% worry about the impact on their employer brand and increasing hiring costs.
“Talent is universal, but opportunity is not,” said Hannah Calhoon, vice president of AI for Indeed. “With a rising demand for AI skills but a limited supply of deep experts, it will be as important as ever for employers to both consider a broad pool of external talent to fill open roles and invest to build skills across their full existing workforce.”
Most organizations that use AI (61%) say the increased focus on AI skills has heightened the need for inclusion in hiring. And while most (53%) still rely on college degrees as the top method to determine if candidates have the right skills for remote tech roles, the percentage who prioritize other education and certifications (18%) has tripled since 2022 (6%). More than half of hiring leaders (52%) now consider alternative education and credentials as one of the top three considerations when hiring remote candidates.
General Assembly surveyed 500 HR professionals in talent acquisition at companies hiring technology talent in the U.S., United Kingdom and Singapore. Download the full report here.
Source: https://www.businesswire.com/
