2025 State of Tech Talent Report

How AI, Upskilling, and Open Source Are Shaping the Tech Workforce

The Linux Foundation’s 2025 State of Tech Talent Report offers critical insights into how AI is transforming the workforce, what hiring managers are prioritizing, and how companies are adapting through upskilling and open source collaboration. Here’s what you need to know.

AI’s Impact on Tech Roles: Growth, Not Just Disruption

Despite fears of job displacement, the report reveals that AI is driving a net increase in hiring. From 2024 to 2026, organizations project a jump from +18% to +23% in net hiring, especially for AI, software, and QA roles. Roles like AI/ML Operations Engineer, Prompt Engineer, and AI Product Manager are on the rise.

94% of organizations expect AI to deliver value across core activities.
67% have already seen shifts in their technical workflows due to AI.
33% say developers now spend time reviewing AI-generated code.

Key Talent Gaps Threatening Innovation

Organizations are facing a critical talent shortage in multiple technical domains. The report highlights:

68% are understaffed in AI and ML engineering.
65% lack cybersecurity and compliance professionals.
61% need FinOps and cloud cost optimization talent.

With 44% of organizations citing lack of skills as a barrier to tech adoption, it’s clear that solving the talent problem is essential for future innovation.

Upskilling Is Winning Over Hiring

Rather than wait 8+ months to hire and onboard, companies are investing in upskilling – which takes only about 5.2 months on average. According to the report:

72% of organizations prefer to upskill internal talent.
97% say upskilling is strategically important.
91% find technical training effective for retention.

This trend is strongest in cloud, cybersecurity, and AI, where internal talent already understands the business context, reducing onboarding friction.

Certifications and Portfolios Matter More Than Degrees

When assessing candidates, hiring managers rank hands-on experience and demonstrated project work higher than academic credentials:

95% prioritize hands-on experience.
85% value project portfolios and open source contributions.
71% consider certifications important.

This reinforces a hiring culture focused on proven skills, real-world contributions, and verified capabilities over diplomas.

Open Source Culture Drives Retention and Innovation

Organizations embracing open source practices report better talent outcomes and faster innovation:

84% say open source involvement improves retention.
40% use open source frameworks for AI development.
91% say training and open source skills boost retention.

Encouraging developers to engage in the open source ecosystem increases career satisfaction, community involvement, and technical excellence.

Strategic Takeaways for Tech Leaders

IT Leaders: Make upskilling and AI-focused role creation a priority. Embrace open source culture to attract and retain top talent.
HR Professionals: Structure training paths around certifications and hands-on learning. Use open source engagement as a recruiting advantage.
Developers: Invest in AI literacy, cloud, and security skills. Contribute to open source for career growth and visibility.