Talent Shortages Are the Top Challenge

Attribution: Reveal 2026 IT Talent Survey

Talent shortages have emerged as the #1 software development challenge for 2026, with 50% of organizations citing difficulties in recruiting and retaining skilled technical staff. Eight in ten (80%) reported that talent shortages are affecting their operations. The demand is most acute for AI expertise, with 56% of respondents planning to invest in people to build AI capabilities. Nearly half of large enterprises (47%) say shortages are directly limiting their ability to meet goals.

The ability to execute hinges on access to the right expertise. As AI adoption accelerates and development complexity increases, organizations are finding that experienced talent is key to scaling innovation.

How the Expanding Role of AI is Impacting Tech Hiring

Attribution: Reveal 2026 IT Talent Survey

Artificial intelligence has emerged as the dominant force shaping hiring priorities. Eight in ten (80%) of the CIOs, CTOs, VPs, IT managers and directors surveyed used AI in software development in 2025, and 77% identified expanding AI use as their top strategic goal for 2026. This widespread adoption has translated directly into workforce demand. Nearly half of companies (48%) reported AI-driven job creation, compared with 18% that report AI-related layoffs, indicating that AI is currently creating more roles than it replaces as organizations scale its use.

Staff with AI expertise represented the top hiring priority in both 2025 (89%) and 2026 (91%), demonstrating sustained and growing reliance on specialized AI talent.

AI-driven productivity gains further reinforce this demand. Two-thirds (66%) of organizations that improved productivity in 2025 attributed these gains to AI integration. As AI becomes embedded across development workflows, companies increasingly require professionals who can design, deploy, maintain, and govern intelligent systems. This has created a strong market for engineers who combine traditional software skills with machine learning and automation expertise.

Hard-to-Fill Technical Roles

Attribution: Reveal 2026 IT Talent Survey

The survey identifies several roles that organizations are struggling to fill. AI engineers top the list, cited by 39% of respondents, closely followed by cybersecurity engineers at 38%. Cloud engineers (25%) and data analytics professionals (24%) also rank among the most challenging positions to staff.

These shortages are widespread across company sizes but are particularly acute in large enterprises. Nearly half of large organizations report that talent gaps directly limit their ability to meet business goals. Only 7% of respondents indicate that they experience no hiring difficulties, underscoring the systemic nature of the skills shortage.

AI engineers are in high demand due to their ability to operationalize machine learning models, build intelligent applications, and integrate AI tools into existing platforms. Cybersecurity engineers are equally critical as organizations confront rising security threats and data privacy risks, which are among the top development challenges for 2026. Cloud engineers and data specialists support the scalable infrastructure and analytics capabilities required for modern digital operations.

High-Value Technical Skill Sets

Attribution: Reveal 2026 IT Talent Survey

Beyond job titles, the survey reveals specific technical competencies that are most sought after. Python leads all programming skills, cited by 56% of respondents, reflecting its central role in AI, automation, and data science. Artificial intelligence skills, including machine learning and model development, follow closely at 47%.

Other highly valued skills include Java (34%), cybersecurity expertise (33%), and C/C++ (particularly in smaller organizations). SQL, machine learning, .NET, JavaScript frameworks, and web development tools also remain important, though at lower levels.

Skill demand varies by organization size. Smaller companies rely more heavily on C/C++ and cybersecurity, reflecting resource constraints and infrastructure maintenance needs. Larger organizations emphasize Python and AI capabilities, aligning with their more advanced digital transformation initiatives. This divergence suggests that while core programming skills remain essential, advanced analytics and automation expertise increasingly differentiate top candidates.

Senior-Level and Specialized Talent Over Entry-Level Hiring

Hiring patterns indicate a strong preference for experienced professionals. While 26% of organizations hired staff in 2025 and 30% plan to hire in 2026, only 12% expect to focus on lower-level talent. Instead, approximately 70% prioritize senior technical staff, particularly those with AI expertise.

This shift reflects the complexity of modern development environments. Integrating AI, ensuring regulatory compliance, managing cloud systems, and securing data require advanced technical judgment that is typically gained through experience. As a result, organizations are competing aggressively for a limited pool of senior engineers, architects, and security specialists.

The Growing Importance of Data and Analytics Roles

Business intelligence and embedded analytics have become core infrastructure in most organizations. Eighty-five percent of respondents use BI tools internally, and 76% deploy embedded analytics. In addition, 84% expect their focus on analytics to increase in 2026.

This widespread adoption drives demand for data analysts, BI developers, and analytics engineers who can manage data pipelines, build dashboards, and integrate insights into business applications. Organizations increasingly rely on these professionals to support strategic decision-making, automate reporting, and identify operational trends.

Data integration challenges, such as incompatible formats, siloed systems, and lack of real-time synchronization, further elevate the value of professionals who can bridge technical and analytical domains. Individuals with expertise in data architecture, visualization, and governance are positioned for strong career prospects.

AI Governance, Ethics, and Security Skills

As AI adoption accelerates, organizations are paying greater attention to ethical and governance concerns. Half of respondents cite ethics and responsible AI use as major challenges, while 48% identify security and privacy risks. In response, many companies have strengthened privacy policies and introduced ethical guidelines.

This environment is creating demand for roles that combine technical knowledge with regulatory and ethical expertise. Professionals who understand explainability, data governance, bias mitigation, and secure model deployment are becoming increasingly valuable. AI governance specialists, compliance engineers, and privacy-focused architects are emerging as critical contributors to sustainable AI adoption.

Conclusion

The Reveal 2026 IT Talent Survey illustrates a technology labor market defined by rapid innovation, persistent talent shortages, and rising specialization. AI engineers, cybersecurity professionals, cloud specialists, and data experts are among the most in-demand roles, driven by widespread adoption of intelligent systems and analytics platforms. AI-driven job creation outweighs displacement, suggesting that AI is reshaping roles rather than eliminating them.

Core skills such as Python, machine learning, cybersecurity, and advanced programming remain essential, while experience and domain knowledge are increasingly valued over entry-level capabilities.

At the same time, the growing emphasis on governance, ethics, and security is expanding opportunities for professionals who can manage AI responsibly. Organizations are responding through aggressive hiring, reskilling initiatives, and strategic workforce planning. As digital transformation continues through 2026 and beyond, professionals who combine technical depth with adaptability and ethical awareness will be best positioned to thrive in the evolving technology landscape.

Survey Methodology

The Reveal 2026 IT Talent Survey was conducted in partnership with Dynata in December 2025. Dynata surveyed 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.

About Reveal

About Reveal

Reveal is a developer-first embedded analytics platform that makes it easy to build beautiful, white-label analytics dashboards directly into your apps — no iFrames, no heavy lifting. Deliver self-service reporting powered by real-time data and enhanced with AI-driven insights. Reveal works in your stack, whether you deploy to the cloud, on-prem, or hybrid environments.

About the Author

Casey Ciniello

Casey holds a BA in mathematics and an MBA, bringing a data analytics and business perspective to Infragistics. She is the Senior Product Manager for the Reveal embedded analytics product and the Slingshot work management platform. She is instrumental in Infragistics product development, market analysis and product go-to market strategy. She is also the Survey Lead of the Reveal Software Development Challenges survey, which has been published annually since 2019. Casey’s work has been published in SaaSXtra, SD Times, Solutions Review, Integration Developer News, and Dataversity, among others. She joined Infragistics in 2013.