Can AI Fix the Skills Gap or Will it Increase it?

/ AI, Application Development, Generative AI, Machine Learning, Open Source Summit 2025

What Was Announced

At Open Source Summit North America 2025, the Linux Foundation, in collaboration with LF Research and Linux Foundation Education, released its annual State of Tech Talent report. Based on insights from over 500 global hiring and training leaders, the report reveals that 94% of organizations believe AI will deliver significant operational value but less than half feel equipped with the skills necessary to execute. It underscores a widening skills gap, the rise of new AI-centric roles, and a growing reliance on open source and upskilling initiatives to bridge the divide. The report also shows a marked increase in prioritizing internal talent development and the strategic value of open source in both talent retention and AI innovation.

Analyst Take

This year’s State of Tech Talent report reveals that while nearly every organization anticipates AI will drive measurable business value, few are equipped with the talent to realize that value. The findings mirror trends identified by theCUBE Research, which show that AI transformation is no longer hindered by tooling, but by talent readiness and organizational structure. As enterprises accelerate AI initiatives, developer roles are evolving from building models to integrating, validating, and operationalizing AI-generated outputs in production.

The 68% of respondents citing an AI/ML talent shortfall is particularly significant. This challenge isn’t isolated to AI alone, it compounds existing shortages in cloud, cybersecurity, FinOps, and platform engineering, leading to resource conflicts and slower time to value. Developers are being asked to do more with less, often tasked with understanding AI-generated code, managing ML pipelines, and embedding responsible AI practices. Tasks that require dedicated training. According to theCUBE Research, “AI adoption is creating a compounding effect across the application lifecycle. Without upskilling, organizations will fail to translate innovation into impact.”

The shift toward hiring AI product managers and ML operations engineers reflects a maturing AI function. One that mirrors traditional software roles but with added complexity and ethical considerations. Specifically, the report’s finding that upskilling is 62% faster than hiring, and 91% more effective for retention, provides a clear call to action for CIOs and CTOs: invest inward. Developer productivity cannot be unlocked through AI alone, only through AI-literate developers.

Additionally, the report confirms open source’s role as strategic and not just for innovation, but for employee engagement. Organizations that embrace open source collaboration see measurable retention benefits, likely due to increased autonomy, community recognition, and skill development. This aligns with earlier research from the Linux Foundation and Meta, which showed that open source AI development accelerates knowledge sharing and reduces technical redundancy.

Looking Ahead

The data shows a clear directional shift of organizations moving away from reactive hiring models and toward proactive workforce development strategies. In the coming year, expect an increase in employer-funded AI certifications, team-wide LLM literacy training, and hands-on open source contributions as a formal part of developer onboarding. We also anticipate more demand for AI-augmented developer platforms that combine training with task automation to reduce manual overhead and speed up onboarding for junior developers.

Long term, the AI workforce transformation will continue reshaping the application development lifecycle. As generative and agentic AI become embedded into developer tooling, we expect a redefinition of core roles ranging from software engineer to AI orchestrator. Organizations that align their tech talent strategy with the realities of AI-driven workflows will not only gain a competitive edge, but also cultivate a more resilient and engaged engineering culture.

Authors

  • Paul Nashawaty

    Paul Nashawaty, Practice Leader and Lead Principal Analyst, specializes in application modernization across build, release and operations. With a wealth of expertise in digital transformation initiatives spanning front-end and back-end systems, he also possesses comprehensive knowledge of the underlying infrastructure ecosystem crucial for supporting modernization endeavors. With over 25 years of experience, Paul has a proven track record in implementing effective go-to-market strategies, including the identification of new market channels, the growth and cultivation of partner ecosystems, and the successful execution of strategic plans resulting in positive business outcomes for his clients.

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  • With over 15 years of hands-on experience in operations roles across legal, financial, and technology sectors, Sam Weston brings deep expertise in the systems that power modern enterprises such as ERP, CRM, HCM, CX, and beyond. Her career has spanned the full spectrum of enterprise applications, from optimizing business processes and managing platforms to leading digital transformation initiatives.

    Sam has transitioned her expertise into the analyst arena, focusing on enterprise applications and the evolving role they play in business productivity and transformation. She provides independent insights that bridge technology capabilities with business outcomes, helping organizations and vendors alike navigate a changing enterprise software landscape.

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