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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 Wednesday, 3rd September, Peter Kyle MP, the Technology Secretary, called on industry to match the UK Government’s ambition on AI in a speech at Mansion House. His message was clear, Britain is open for investment, and he wants AI companies to call the UK home. Before his speech, Peter Kyle sat down with Nash Squared’s Technology Evangelist, David Savage, for an interview now featured in our Tech Talks podcast. Their conversation focused on what AI investment really means and who stands to benefit. Decentralised growth at the heart of AI investment Since Labour took office, the UK has attracted a record £44 billion in AI and technology investment. A key focus of this strategy is ensuring growth reaches all parts of the country, not just London. Major projects include multi-billion-pound investments in data centres and national supercomputers in Edinburgh and Exeter, with a goal to increase sovereign compute capacity 20-fold by 2030. However, our own 2025 Nash Squared/Harvey Nash Digital Leadership Report (DLR) shows that while AI investment is accelerating, larger organisations are more likely to see returns due to their scale and resources. Peter Kyle’s focus on decentralising investment and doubling AI companies outside of London is designed to change that, ensuring talent and opportunity are spread more evenly across the UK, reducing the need for people to leave their regions for London or Silicon Valley. Democratising AI skills for a creative workforce Peter Kyle noted that the skills barrier to using AI is changing. The future isn’t about coding expertise, but about creativity and effective prompting. The DLR supports this shift, with 65% of digital leaders saying they’d now choose an AI-enabled developer with two years’ experience over a five-year veteran without AI skills, a huge change in hiring priorities. While technology has often been criticised for deepening social and economic divides, Kyle stressed that proficiency in prompt usage can be gained in as little as 2.5 hours of training, making it accessible to people from all backgrounds, including areas of deprivation. And with the DLR highlighting a lack of action on AI upskilling in many organisations, this ambition is an encouraging sign. A “Goldilocks moment” in AI governance and innovation The UK is pursuing what Kyle described as a “light touch, but assertive” approach to AI regulation, encouraging innovation while keeping people safe, without overly prescriptive laws that risk slowing progress. The AI Security Institute, working alongside Frontier Labs, monitors risks before deployment, while sector regulators assess AI’s impact in their industries. This balanced approach has even been described by Jensen Huang, Founder and CEO of NVIDIA, as a “Goldilocks moment” for Britain. The DLR adds context, with 40% of digital leaders worried about the misuse of Generative AI, such as staff transferring sensitive documents into chatbots or acting on biased data. Kyle’s strategy aims to build trust while maintaining a pro-innovation environment. AI as a personal and societal equaliser Kyle shared his own experience of learning with Dyslexia, explaining how AI tools have supported his learning style and boosted his potential. He believes AI could “level up” opportunities, particularly for students in state schools and deprived areas, challenging the idea that privilege must be bought through expensive education. The DLR strengthens AI’s wide-reaching impact, describing it as an “everywhere” technology that’s already driving productivity and reshaping how businesses operate. While it doesn’t directly address educational equity, our research shows AI’s potential to upskill existing teams and free developers to take on more complex, creative challenges, which is closely aligned with Kyle’s vision of AI empowering individuals and expanding opportunity. Listen to the full conversation now on Tech Talks to hear Peter Kyle MP and David Savage explore the UK’s AI ambitions in depth.

AI is becoming central to organisations’ digital transformation, and cybersecurity is no exception. In this article for Computer Weekly, Peter Birch, director of technology and digital executive search at Harvey Nash, and Mo Gaibee, associate consultant, highlight how AI is transforming cyber teams and operations. According to the 2025 Nash Squared/Harvey Nash Digital Leadership Report, 90% of businesses are now piloting or implementing AI, a significant jump from 59% in 2023, while 29% of technology leaders report their organisation has suffered a major cyber attack in the past two years, the highest level since 2019. AI is increasingly embedded in security operations, helping SOC analysts, threat hunters, and penetration testers detect, prioritise, and respond to threats more efficiently. The article explores the resulting war for cyber talent, with AI skills becoming a key differentiator for recruitment, as well as retention challenges for organisations under pressure to protect against evolving threats. Peter and Mo also examine the hybrid future of cybersecurity, where AI tools enhance, but do not replace, the expertise of human teams, making AI proficiency a critical requirement for cyber leaders and professionals. Read the full article on Computer Weekly.