Artificial Intelligence skills have overtaken traditional engineering and IT roles to become the most difficult to fill globally, according to a survey of 39,000 employers across 41 countries. The 2026 Talent Shortage Survey by ManpowerGroup reveals that 72% of employers report difficulty in filling roles, with demand for AI capabilities now outpacing other technical skills for the first time.

The Rise of AI Skills in the Talent Landscape

The survey, which spans 41 countries and includes responses from 39,063 employers, highlights a historic shift in the global talent crisis. AI Model & Application Development and AI Literacy now top the list of hard-to-find skills, with 20% and 19% of employers citing these as the most difficult to fill, respectively.

Traditional IT and data skills, which previously dominated the rankings, have fallen to seventh place at 17%. This realignment highlights the rapid transformation in the labor market driven by the integration of AI into nearly every sector. The report also notes that the demand for AI skills has created a new hierarchy of technical demand, with AI capabilities now displacing traditional IT roles.

Jonas Prising, ManpowerGroup Chair & CEO, emphasized the significance of this shift. ‘The rise of AI skills to the top of the shortage list reflects how quickly the talent landscape is evolving,’ he said. ‘Companies are responding with upskilling and more flexible workforce models, recognizing they will need to hire for potential while building AI literacy across their workforce.’

The Value of Human Skills Amid AI Expansion

Despite the surge in demand for AI expertise, the survey found that core human skills remain highly sought after. Communication, Collaboration & Teamwork were cited as the most in-demand attributes at 39%, followed by Professionalism & Work Ethic (36%) and Adaptability & Willingness to Learn (34%).

This finding suggests that while AI is changing the nature of work, it is not replacing the need for interpersonal skills. Employers continue to prioritize workers who can collaborate, communicate effectively, and adapt to new technologies and processes.

Prising added, ‘AI is not replacing jobs, it is changing work, and companies that connect productivity gains with opportunity and career growth will be best positioned to compete in a talent-scarce world.’

Regional Disparities in Talent Shortages

The intensity of talent shortages varies significantly across regions. Employers in Germany (83%), France (74%), and the U.K. (73%) face the most significant challenges in filling roles, according to the survey. In contrast, China (48%) is the least constrained major market, highlighting the fragmented nature of the global talent landscape.

These disparities underscore the importance of location in shaping hiring strategies. Employers in different regions are adjusting their approaches based on local conditions, with some focusing on internal development and others on expanding their talent pools.

The survey also found that the Information industry faces the highest shortage at 75%, while critical service sectors like Hospitality (74%) and Public Sector, Health & Social Services (74%) report nearly identical levels of strain. This widespread challenge extends across Professional, Scientific, and Technical Services (73%), Manufacturing (72%), and Finance and Insurance (71%), indicating a broad-based constraint on economic growth and service delivery.

Employer Strategies to Combat Talent Shortages

Faced with structural scarcity, 91% of employers are deploying a mix of strategies. The primary focus is on internal development and flexibility, with Upskilling/Reskilling (27%) leading the way, followed by offering more Schedule Flexibility (20%) and Location Flexibility (18%).

To compete externally, employers are also increasing wages (19%) and targeting new talent pools (18%). These strategies reflect a growing recognition that traditional hiring practices may no longer be sufficient to attract and retain top talent in a rapidly evolving labor market.

Organizational size significantly impacts hiring success. The largest companies — those with 1,000-4,999 employees — report the highest shortage rate (75%), which is 11 points higher than the smallest firms (under 10 employees at 64%). This highlights the challenges faced by large corporations in securing skilled workers in a highly competitive market.

Looking Ahead: The Road to AI-Driven Workforce Transformation

The survey highlights the urgent need for companies to adapt to the changing demands of the labor market. As AI continues to reshape industries, the ability to integrate AI literacy and upskilling initiatives into workforce strategies will be critical for long-term success.

The findings also suggest that the global talent shortage is unlikely to ease in the near future. With AI skills remaining at the forefront of the shortage list, employers must continue to innovate in their hiring and retention strategies to stay competitive.

As the demand for AI expertise grows, the challenge for employers will be to balance the need for technical skills with the enduring value of human capabilities. This will require a strategic approach to workforce development that emphasizes both technological proficiency and interpersonal skills.