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In the fast-moving world of technology, experience used to be the gold standard. Job titles, years in post, and familiarity with established systems once served as reliable markers of a candidate’s value. But in 2025, that’s changing. The rise of artificial intelligence (particularly GenAI) is transforming the skills landscape so rapidly that many of the old hiring playbooks are no longer fully fit for purpose. New findings from the 2025 Nash Squared/Harvey Nash Digital Leadership Report highlight just how much priorities are shifting. According to our research, 65% of digital leaders indicate they would now prioritise hiring a developer with strong GenAI skills and just three years of experience over someone with five years of experience but no AI fluency. While this doesn’t capture the full complexity of hiring decisions, it signals that AI skills are becoming a defining factor in today’s hiring decisions, particularly when it comes to technology recruitment. AI skills are now business-critical…and scarce This shift isn’t happening in a vacuum. AI has rapidly moved to the centre of how organisations operate, from code generation and data analysis to recruitment, customer service, and internal operations. The demand for AI talent has surged, with demand outstripping supply.  Our report shows that AI is now the number one skills shortage in tech. Demand for AI talent has jumped from 28% in 2023 to 51% in 2025, an 82% increase, the steepest rise recorded since we began tracking skills scarcity. Yet despite this, over half of organisations are not currently upskilling their staff in AI. The gap between AI’s growing importance and the internal capability to support it is widening, and this has implications not only for hiring but also for retention, productivity, and long-term business performance. How AI is changing hiring processes The shift towards AI skills is not just about what’s being hired for, but how organisations are hiring. We’re seeing a fundamental rethink of recruitment processes: Job descriptions: Companies are rewriting job specs to specify proficiency in AI tools and platforms - such as Python, TensorFlow, and GenAI frameworks, rather than relying on generic “AI skills” as a buzzword. Assessment methods: There’s a growing use of AI-driven assessments and real-world coding challenges to test candidates’ ability to apply AI in practical contexts Skills over tenure: Where once tenure and job titles carried the most weight, today’s tech hiring is increasingly centred on proven skills, adaptability, and the ability to work alongside intelligent systems. However, many organisations are still catching up. Job specifications often reference “AI skills” without defining what this means in practice, and interviews may still lean too heavily on past roles or academic credentials. At the same time, candidates need to adjust, clearly showcasing where they’ve applied AI tools in real contexts, whether that’s automating analysis, streamlining development, or enhancing digital products. Practical steps for organisations To address the growing need for AI talent, organisations should: Develop a clear AI strategy: Ensure a defined roadmap is in place, or being worked on, to demonstrate commitment to AI adoption. Top AI talent is attracted to organisations with a vision for growth, where they know their skills will contribute to a structured and evolving AI environment. Define AI skills clearly: Avoid vague requirements. Specify the tools, platforms, and types of AI experience needed for each role. Update assessment methods: Use practical tasks, case studies, and AI-driven assessments to evaluate candidates’ real-world AI capabilities. Upskill internally: Invest in learning and development to build AI literacy across the workforce, not just in specialist roles. Foster a culture of continuous learning: Encourage ongoing development and provide access to AI training resources for all employees. Beyond recruitment: building a future-ready workforce Shifting hiring practices is only part of the answer. For AI adoption to deliver real value, businesses also need to think beyond recruitment and invest in developing the skills of their existing tech workforce. Yet with more than half of organisations not currently providing AI training, a significant opportunity to build capability internally is being missed. Collaboration between HR, L&D, and technology leaders is crucial. The organisations most likely to succeed will be those that not only rethink job specs and validate AI capability during hiring but also provide continuous learning opportunities to help their teams adapt. A collaborative approach, where recruitment and development reinforce one another, will be key to building resilient, future-ready tech functions. Shaping tomorrow’s workforce today For organisations undergoing digital transformation, this is a moment to reset. The ability to identify and hire people with the right AI and data skills could increasingly determine how quickly and effectively businesses adapt. At Harvey Nash, we’re helping our clients respond to this shift. As experts in tech and AI recruitment, including AI and data roles, we work with forward-thinking businesses to reshape their hiring strategies, assess practical capability, and build teams ready for the future of work. To explore more insights into how AI is shaping the tech workforce, download the 2025 Nash Squared / Harvey Nash Digital Leadership Report.

AI is transforming the workplace, but its impact on entry-level roles is more nuanced than often portrayed. In a recent article for Computer Weekly, Andy Heyes, Managing Director UK&I & Central Europe at Harvey Nash, explores how AI is influencing hiring, tasks, and workforce structures, particularly for junior positions. Andy highlights that while some entry-level, customer-facing roles such as helpdesk and tech support are seeing reductions, there is little evidence that these roles are being entirely eliminated. Instead, AI is reshaping responsibilities, automating repetitive tasks, and changing expectations rather than replacing human workers wholesale. He also notes that economic factors, including changes in government policy, have affected the overall jobs market, contributing to what some perceive as a decline in entry-level opportunities. Despite these pressures, Andy emphasises that demand for new talent remains, with organisations needing skilled graduates to adapt to evolving business needs. The article explores the broader implications for employers and graduates alike, suggesting that AI should be seen as a tool to enhance roles rather than a replacement, with human expertise continuing to be critical in business operations. Read the full article on Computer Weekly.

On 11th September 2025, we welcomed digital and business leaders to the Dakota Hotel in Newcastle for our Nash Squared / Harvey Nash Digital Leadership Report launch event. The breakfast event brought together a vibrant group of peers to explore the latest findings from our Nash Squared / Harvey Nash Digital Leadership Report, in a session moderated by David Savage, Tech Evangelist at Nash Squared and featuring a fireside chat with John Whitlow, CIO at Nixon Hire. The conversation was lively, candid, and deeply connected to the challenges shaping leadership today. Here are some of the key themes we explored together: AI: Still in the foothills AI dominated discussion, with 82% of organisations now actively engaging with it. But while enthusiasm is high, many remain in the discovery stage, working to clarify use cases and overcome fragmented understanding across senior leadership. Unlike previous shifts such as SaaS and Cloud, AI is seen as a more profound, societal transformation that demands cohesion and vision. The data imperative A recurring question was whether organisations have the right data foundations in place. Do they have a clear operating model? Are teams truly data literate? Is stewardship strong enough? Without this, AI risks becoming scattered experimentation rather than a strategic asset. Innovation by stealth The rise of “Shadow AI” emerged as a fascinating theme. Across many businesses, individuals are experimenting with tools independently, creating grassroots momentum but also bypassing governance. While this shows appetite for innovation, it also highlights the need for structure to avoid fragmentation and missed opportunities. Hybrid working: Still in flux Hybrid work continues to evolve, with no one-size-fits-all answer. The discussion highlighted the importance of workforce welfare and the need to balance flexibility with intentional design. For hybrid to truly succeed, empathy and adaptability remain essential. The journey ahead The morning underscored the complexity of leading through this moment of change. At the intersection of AI, data, and workforce transformation, digital leaders are being challenged to act with clarity, cohesion, and care. A big thank you to all our guests for joining us and contributing to such a thoughtful and engaging morning.

The AI Reality Check: Digital Foundations Still Matter In this candid Tech Talks conversation, fractional and now permanent CIO John Whitlow offers a pragmatic reality check on AI implementation in the business world. While external pressure drives many organizations to "do something AI", John reveals that a significant number, particularly SMEs, are still in the "foothills" of their digital transformation journey, wrestling with foundational issues like poor data quality, where 80% of data can be useless. He argues that AI follows past technology shifts, with many organizations not yet prepared for large-scale implementations, despite the rapid early adoption sparked by tools like ChatGPT.  John also unpacks the paradox of a massive jump in demand for AI skills versus a lack of organizational training, emphasizing the need for a joined-up AI strategy across an entire organization, not just IT. He stresses the critical role of leadership in fostering diversity, equity, and inclusion (DE&I) for high-performing teams, drawing from his own recruitment practices. The discussion further touches on the ongoing "rebound" in hybrid working models and the commercial realities driving—or delaying—sustainability initiatives in businesses. Ultimately, John Whitlow's insights make sense of complex tech realities by revealing the human decisions, trade-offs, and fundamental challenges that truly shape the future of business IT. Tech Talks Podcast  Tech Talks is a podcast that probes the minds of tech leaders, hosted by Technology Evangelist David Savage. Each week, the show releases three episodes with new guests, covering the latest tech news, exploring new products and cultural transformations that drive the tech industry. Founded in 2015 Tech Talks has published over 650 episodes and attracts over 18,500 streams a month from a global audience. The podcast offers insights and ideas from leading technologists on culture, innovation, finance, growth, sustainability, and more, providing a platform for the c-suite, founders, and senior figures to hear from others facing similar challenges and tap into a wider community. Find out more about Tech Talks here.