AI is transforming the IT Mmarket: who’s being cut and who’s in demand in 2025

Experts note that the cyclical downturn that began in the IT sector a few years ago is gradually evolving into structural changes caused by the growing adoption of AI and the decreasing demand for entry-level specialists. The study is based on data from Indeed and Glassdoor, as well as a survey of more than a thousand IT workers in the US, conducted by YouGov between May and June 2025.

According to the report, companies implementing generative AI technologies are most frequently cutting back on developers, QA engineers, and product or project managers. These positions are gradually giving way to roles in cybersecurity, data analytics, and AI systems development.

The most frequently mentioned skills in IT job listings during the first half of 2025 are Python, SQL, and AWS. Demand is growing fastest for specialists in AI, cloud platforms, and continuous integration and deployment (CI/CD).

Employers are increasingly looking not for individual tool experts but for specialists with comprehensive skill sets. For instance, Python, machine learning, and data analysis skills are now viewed as a unified skill set, while AWS, DevOps, and CI/CD are considered a standard package for accelerated development.

Generative AI is also changing the nature of jobs. Instead of traditional programming, there’s a growing demand for skills in using AI tools, prompt engineering, and integrating models into workflows.

Meanwhile, the gap between market needs and available talent continues to widen. Companies are competing for a limited number of specialists and are increasingly investing in internal retraining—transferring employees with adjacent competencies into new high-tech roles.