Job advertisements requiring AI skills have increased by 62 percent year-on-year, according to new data from global talent solutions provider Robert Walters, while entry-level positions in the tech sector have declined by as much as 35 percent over the same period.
The research highlights rising demand for digital transformation expertise across UK professional services, with a 37 percent increase in job listings requiring these skills. However, it also underscores the growing imbalance in the labour market, where advances in artificial intelligence are accelerating structural changes in the workforce.
Job ads referencing data architecture skills have grown by 46 percent, while those requiring knowledge of data privacy have risen by 33 percent. These increases suggest companies are simultaneously working to build, scale, and safeguard their AI and digital infrastructures.
Meta recently announced plans to expand its ‘super intelligent’ AI team, with CEO Mark Zuckerberg confirming the company’s intention to prioritise artificial intelligence in its operations.
Ben Litvinoff, Associate Director at Robert Walters London, said: “Most firms, especially across finance and technology sectors, are ramping up efforts around both security and AI projects. Efforts to stay ahead with AI as well as provide enhanced resilience require tech teams working behind the scenes to bring organisational infrastructures up to speed.
“AI projects create demand for skilled tech professionals, but they also lead to job cuts. First, companies trim payroll numbers to gather initial funding then further cuts come into play as entry-level roles are replaced by newly optimised or even, automated processes.”
The decline in entry-level and graduate roles has been particularly pronounced in the technology sector. Data from Robert Walters Market Intelligence shows that these roles have reduced by up to 35 percent over the past 18 months.
Jonny Bohane, Senior Manager at Robert Walters Market Intelligence, said: “Since early 2023 we’ve seen the growth of graduate and entry-level hiring markets sustain hit-after-hit. Particularly, entry-level technology roles are seeing the steepest declines, due to AI implementations and cost efficiencies.”
The competition for digital transformation talent is also intensifying. Roles requiring IT project and programme management skills have seen a 75 percent year-on-year increase, while those mentioning technology change management have risen by 84 percent.
Ben Litvinoff explained: “It’s clear that strategically placed technology teams are instrumental in actioning and executing the key digital transformation projects which many businesses are continuing to prioritise.”
Despite economic headwinds, businesses are continuing to invest in CRM systems, cloud migration and optimisation of tech-enabled services. However, soft skills remain critical to delivering successful outcomes.
Collaboration, senior stakeholder management and strategic communication skills have also seen notable increases in demand, rising by 51 percent, 36 percent and 26 percent respectively.
Ben Litvinoff added: “While technical AI-ready skills are crucial, they aren’t a single solution. Many professionals possess softer ‘AI resilient’ skills that employers will lose out on when cutting talent too deeply to facilitate short-term cost saving or innovation.
“Streamlining functions or AI enhancements may be top of the agenda now but ongoing large-scale job declines threaten both future talent pipelines and crucial skills, which could impact firms for years to come.”