AI transformation of IT skill sets

We’re not entering a future where AI simply supports your teams, we’re already there. The shift is real, and it’s fast. Traditional IT roles are changing because the tasks tied to them are evolving or disappearing altogether. If your tech stack still relies on people completing work that machines can already do reliably and better, you’ve already lost time, and likely, money.

It’s most visible in software development. Organizations are integrating AI into engineering workflows, cutting down human-only coding tasks and pushing more into AI-assisted territories. Tools can now write, test, and even optimize code in real time. That’s a fundamental shift in how software gets built, maintained, and innovated. It doesn’t mean engineers become irrelevant. It means engineers who understand how to work with AI are going to lead. The rest step aside.

This is the moment where reassessing your talent strategy is non-negotiable. Look at your current teams. If they’re not learning how to leverage AI, even in non-AI roles, you’re bottlenecking future growth. You don’t need AI experts in every role, but you do need AI fluency across functions. Roles change, job titles change, what you’re hiring now for might not exist in five years unless it evolves. That pressure is on you, not the talent market.

Draup, a workforce analytics firm, confirms that while human-only tasks are declining, AI isn’t eliminating jobs everywhere, it’s transforming processes. The frontier here isn’t job loss; it’s workforce change. Engineers, developers, and analysts who learn to collaborate with AI will drive output faster, with smarter outcomes.

Tech leaders who embraced automation during the first digital wave improved operational efficiency. Those who embrace AI now will determine who leads markets tomorrow. Don’t treat AI like a side project. Make it foundational to how your teams think, build, and execute.

Balancing job displacement with overall employment growth

There’s a lot of talk about AI eliminating jobs. That’s only part of the story. Yes, AI will automate tasks that don’t need human input anymore. But the bigger picture is job transformation, not job destruction. You’re not looking at a shrinking workforce. You’re looking at a reorganized one.

The reality is striking. Forrester projects that generative and agentic AI will eliminate around 10.4 million U.S. jobs by 2030, equivalent to roughly 6% of the workforce. That sounds significant. But it doesn’t end there. A broader projection from Draup suggests AI will actually help create 78 million new jobs globally by the end of the decade. That’s more than enough to offset the losses. The demand just shifts to different roles, different skill sets, and different ways of working.

This isn’t optional for executives. If you’re not planning for this shift, you’re exposing your business to risk, talent mismatch being one of the biggest. Don’t just look at who’s leaving the workforce. Look at who you need to bring in, or who on your team now can evolve and scale with AI. Job titles will blur. Operations, engineering, design, all will integrate AI to some degree. Workers capable of adjusting to this environment will become core to enterprise survival and growth.

Executives also need to stop assessing automation purely through a cost-reduction lens. Sure, some roles may get lighter or be absorbed altogether, but the long-term value lies in time reallocation and innovation. If time-consuming, predictable tasks are going away, your teams can build, solve, and scale instead of getting bogged down by repetition.

You need to build hiring pipelines based on roles that didn’t exist five years ago. You need to invest in tech-savvy internal talent, not just external hires. And most importantly, you need to communicate clearly, AI may shift roles, but it doesn’t mean discarding people. With the right strategy, your workforce is an asset that grows in value as AI becomes more integrated. This is how transformation actually works.

The enduring importance of human-centric work

AI is powerful. It’s moving fast. But it doesn’t replace people, it works with them. The future of work still depends on humans making smart decisions, managing complexity, and solving problems AI can’t understand. If you’re in a leadership position and you think AI is going to run your company for you, you’re already behind.

What’s actually happening is a shift in how work gets done. More tasks are automated, yes, but most jobs are made up of a range of tasks. AI will handle the structured, repetitive parts. The rest still needs human input. Humans bring judgment, creativity, team leadership, and decision-making in situations where the data is incomplete or the context is nuanced. AI doesn’t operate well in grey areas. People do.

J.P. Gownder, Vice President and Principal Analyst at Forrester, said it clearly: “In the next five years, the future of work will remain largely human. AI will take over increasing numbers of workflows and tasks, but workflows and tasks aren’t jobs. Your strategy must invest in the people who use AI to improve their productivity and employee experience.” That should be the baseline for every business leader thinking about AI. It’s not just about technology, it’s about equipping your people to use it effectively.

The leaders who will win are the ones building systems where people and AI scale together. That requires investment. Training matters. Flexibility matters. You want teams that know how to use AI tools, how to ask the right questions, challenge the output, and improve outcomes. This isn’t about turning everyone into data scientists. It’s about ensuring your workforce understands how to get value out of AI at every level.

Forrester’s analysis points to a 6% reduction in U.S. jobs by 2030 due to AI. That’s not insignificant, particularly if you’re operating in legacy systems. But it reinforces the imperative to act now. If AI is built into the workflow without being built into your workforce, you’ll create bottlenecks and blind spots. If it’s integrated with your talent strategy, you’ll unlock performance gains that weren’t previously possible.

In short, don’t imagine a world where humans aren’t in the picture. Focus on a world where they’re enhanced, not excluded. That’s where the competitive advantages form, and that’s where leadership matters most.

Key takeaways for leaders

  • AI is reshaping tech job requirements: Leaders should audit technical roles now, many traditional IT skills are already outdated as AI automates coding and engineering workflows. Prioritize upskilling teams to work alongside AI rather than relying on legacy competencies.
  • Job loss is real, but net growth is bigger: Expect displacement, not collapse, AI may cut 6% of U.S. jobs by 2030, but 78 million new jobs are projected globally. Executives should focus on workforce redesign and recruitment strategies that align with AI-augmented roles.
  • Human capability still drives the future of work: AI handles tasks, not entire roles, investing in employee fluency with AI tools will unlock productivity and protect business agility. Make human-AI collaboration a core part of your operational strategy now.

Alexander Procter

January 26, 2026

6 Min