5 MIN READ
Hilary Carter | 27 June 2025
When it comes to AI and the workforce, the headlines tend to oversimplify: jobs are disappearing, automation is inevitable, and the machines are winning. But the reality—as revealed by our latest research—is far more nuanced.
This week, the 2025 State of Tech Talent Report offers a global, in-depth look at how organizations around the world are navigating a fast-changing technical workforce. This report builds on recent findings from our study with Meta, The Economic and Workforce Impacts of Open Source AI, which explores the commercial and employment effects of open source AI adoption.
Together, these two reports present a more complete—and more hopeful—picture: Just as technological innovations before it, AI is changing the way we work. While certain types of routine work and entry-level positions are indeed vulnerable to automation, the demand for AI-specific technical skills is accelerating globally, and creating a talent gap in its wake.
Understanding that distinction is critical for building responsible, inclusive, and future-ready talent strategies.
A Tale of Two Job Markets
Let’s unpack that nuance. Our Meta-sponsored study finds that open source AI has a measurable economic impact: it enables faster innovation, reduces deployment costs by over 50% in some business units, and allows companies to scale new services with unprecedented speed.
But there’s a workforce paradox at play.
As some entry-level or repetitive tasks become automated—particularly in software development and customer service—organizations are simultaneously increasing their hiring in AI-adjacent fields. In this year's global Tech Talent report, we found that roles in AI, ML, cloud engineering, and FinOps are in high demand, with hiring managers citing critical talent shortages in these areas.
So while certain job functions may shrink or evolve, the broader AI-driven transformation is creating net new opportunities in the tech sector. In fact, the global report projects a +21% net hiring effect from AI adoption in 2025 and a +23% by 2026.
In other words, the fear of widespread tech job loss is largely unfounded. What’s really happening is a reshaping of job content, workflows, and expectations.
Skills That Are Gaining Value
To adapt, organizations are turning to a familiar but increasingly urgent solution: upskilling.
In both the global and Japan-specific editions of the Tech Talent report, nearly all organizations—97% globally, and 94% in Japan as reported at KubeCon / CloudNativeCon in Tokyo last week—agree that upskilling is a strategic priority. It’s easy to see why:
- Upskilling takes 38% less time than external hiring
- 91% of organizations report that upskilling helps retain talent
- Upskilling builds institutional knowledge and promotes innovation from within
And once again, similar to what we’ve reported in previous studies, hiring managers rank hands-on experience and open source contributions above formal degrees. This shift favors practical training, open collaboration, and certifications that demonstrate real-world expertise in AI, cloud, and cybersecurity.
Again, open source plays a central role. Our study with Meta shows that 63% of companies are already using open source AI models, and 89% of AI adopters use open source components in their tech stack. Open ecosystems allow developers to learn, contribute, and grow—making open source both a technical foundation and a career development pathway.
Rethinking Entry-Level Talent
As is often the case, research can point to some uncomfortable truths, and this year’s study reveals some discouraging trends. One shared concern across both reports is the decline in entry-level opportunities, particularly in regions with advanced AI deployment.
As organizations rely more on automation for simpler tasks, they risk narrowing the traditional on-ramps for junior developers and early-career professionals. This could have long-term effects on the talent pipeline, especially in economies already facing demographic or educational bottlenecks.
The short-term solution? Build a bridge over the next three to five years that provides alternative pathways for emerging professionals—internships, apprenticeships, mentorships, and community-based programs that offer exposure, and early experience for working alongside AI. And ensure that AI doesn't just displace junior work, but enhances it with training opportunities and real-world application during a key shift in how we prepare people for tech careers.
Because five to seven years from now the game will change. The next wave of graduates will have learned - and worked to code - with AI as a partner, allowing them to enter the workforce already AI coding agent-fluent. This will substantively change what someone fresh out of school can do as well as employers’ expectations of what constitutes entry-level skills.
The future’s coming fast—but we still have time to build the bridge.
The Big Picture: Responsible AI Requires Resilient Talent
AI is not destiny—it’s a tool. Its impact on employment will depend on how we design systems, allocate resources, and train our team members. That’s why we believe these two reports—the 2025 State of Tech Talent Report and the Economic and Workforce Impacts of Open Source AI—must be read together.
They reinforce an important truth: AI is an amplifier of human potential, but only if organizations invest in the people who will guide, govern, and implement it. At the Linux Foundation, we’re proud to be part of the solution—offering open training, certifications, and community engagement opportunities that help professionals build the skills they need for the future. Whether it’s Kubernetes or AI governance, we know that open source ecosystems are uniquely positioned to support workforce transformation at scale.
Looking Ahead
As I reflect on the past few weeks—presenting the Japan findings in Tokyo and launching the global report to a worldwide audience—I’m struck by the consistency of what I hear: employers everywhere are eager to embrace AI, but they’re struggling to find the people who can help them do it responsibly.
This is our challenge. And our opportunity.
Let’s not fixate on the jobs that are disappearing. Let’s focus on the ones we can grow—by developing skills, opening doors, and supporting every technologist who wants to build a better, smarter world.
Hilary Carter is Senior Vice President of Research at the Linux Foundation. To access the 2025 Tech Talent report, and dozens of industry- and domain-specific research, visit linuxfoundation.org/research.