Firms turn from tech hiring wars to AI upskilling push

Companies are shifting their tech hiring strategies toward training existing staff, as recruiters weigh the costs and constraints of external recruitment against the growing need for AI skills, according to new research from General Assembly.

State of Tech Talent 2026, a survey of 500 talent acquisition professionals across the US, UK, and Singapore, found 83% believe company success now depends more on upskilling employees for AI than hiring new talent. At the same time, 96% said technical roles remain at least somewhat difficult to fill.

The findings point to a labour market where demand for specialist skills remains high, but employers are placing greater emphasis on internal development. Immigration and mobility issues are also becoming a bigger factor in workforce planning, with 95% considering or already taking steps to source more visa-independent talent over the next year.

Hard-to-fill roles

Among recruiters who described tech hiring as "extremely difficult," data analytics and data science roles were the biggest challenge. Nearly half of that group, 47%, ranked them as the hardest to fill, followed by software engineering at 38%.

General Assembly attributed these pressures to rising recruiting costs and visa constraints, and positioned upskilling as an increasingly common response as organisations expand AI-related work.

Upskilling focus

Four in five recruiters, 80%, said upskilling will play a major or huge role in filling talent gaps in 2026. The survey also pointed to a shift toward training rather than hiring when companies need more technical capacity: 35% said they are now more likely to train existing employees when they need more tech talent, up from 28% in 2024.

Planned training areas clustered around data and AI. Nearly half of respondents, 47%, expect to add or offer upskilling programmes in data analytics and data science. Other figures pointed to programmes for AI development (43%) and AI literacy (42%).

The data also suggests employers are not converging on a single model for training delivery. Instead, they are mixing approaches based on internal resources, job design, and the skills required.

Training options

Among HR professionals, 39% said on-the-job training is the most effective method for upskilling. Similar shares favoured options outside day-to-day work: 36% preferred paying for external training or certifications, while 34% preferred working with an external partner to develop customised training or certifications.

These preferences reflect trade-offs between speed, cost, and relevance. On-the-job learning can embed skills in current work, external programmes can provide structure and standardisation, and custom programmes can align training with an organisation's tools and processes.

Measuring impact

Most organisations said they evaluate training outcomes using performance-related measures. The survey found 68% use performance-based indicators such as improvements in key metrics or manager assessments.

Half said they use pre- and post-test assessments, while 49% cited attainment of industry certifications or degrees. Even so, 43% said they struggle to measure the benefits of training.

Measurement matters because it affects future budget decisions and leadership support. Organisations that cannot link training to operational or financial outcomes may find it harder to scale programmes, especially as time and cost pressures rise.

Barriers remain

Respondents also pointed to practical constraints that limit training activity, even when leaders recognise the value of upskilling. Nearly half cited lack of time (47%) and lack of budget (46%).

Employee participation also emerged as a brake on investment: 36% said low participation or buy-in prevents further investment in training. Smaller businesses appeared more exposed to leadership buy-in issues. Companies with fewer than 2,500 employees were more likely to cite lack of leadership buy-in (37%), compared with 24% at larger companies.

The results suggest organisations may need to address motivation and incentives alongside curriculum design. Uptake can depend on workload, manager support, and whether training is linked to progression, pay, or job security.

Recruiter concerns

The research also captured anxiety among recruiters as automation tools spread into HR processes. Half of tech recruiters, 50%, said they fear the role will be obsolete within five years.

More than six in 10, 61%, said they have already seen some entry-level jobs automated out of existence, and another 32% believe that is coming.

The report, conducted with Wakefield Research, surveyed HR professionals with manager-level seniority or higher who recruit for software engineering, data analytics, data science, and UX roles. General Assembly is part of LHH, within Adecco Group's talent solutions business.

"Tech 'talent wars' are over as more companies prioritize upskilling," General Assembly said.