AI slowdown and widening skills gaps
A new tech skills forecast predicts a correction in AI investment and renewed urgency for workforce upskilling.
Technology skills company Pluralsight has released its 2026 Tech Forecast, setting out trends it expects to shape the year ahead in technology and workforce development. The report anticipates a cooling of the generative AI boom, growing pressure on organisations to upskill their workforces, and deepening concern over the erosion of foundational skills.
The forecast, which draws on insights from over 2,500 Pluralsight course authors and 3,000 industry executives, suggests the market for artificial intelligence is entering a period of adjustment. According to Pluralsight, 95 percent of organisations reported no return on their generative AI investments in 2025, leading to what it calls a “deflation” rather than a collapse in the AI market.
‘AI isn’t going away, it’s maturing,’ said Pluralsight author Mike McQuillan. ‘The winners will be those who focus on sustainable value, not short-term hype.’
Pluralsight predicts that 2026 will see further convergence of technology disciplines. The report highlights that cloud engineers increasingly need AI expertise, data scientists must understand systems engineering, and cybersecurity professionals will face new AI-driven threats. Critical thinking and the capacity to learn continuously, rather than proficiency with specific tools, are cited as the key differentiators of success.
Another theme is a shift from “AI as a product” to “AI as a solution”, as organisations focus less on adopting AI tools and more on integrating AI to improve efficiency and customer experience. ‘The next phase of AI success will be measured by responsibility, security and real business impact,’ said Pluralsight author Kesha Williams.
The report also warns of the risk of skills atrophy from overreliance on AI. As automation increases, Pluralsight argues that leaders must ensure teams continue to build and maintain core technical skills and apply critical oversight to AI-generated outputs.
Pluralsight’s analysis points to further contraction in entry-level technology roles. It notes that such positions have already fallen sharply since the pandemic, and that automation of routine tasks has reduced opportunities for new entrants to build experience. The company warns this could result in a “lost generation” of emerging tech talent unless organisations invest in mentoring and structured development.
With hiring costs continuing to rise, Pluralsight cites an average of more than $5,000 per new IT hire in the US, the report forecasts a renewed focus on internal mobility and skill-building. ‘Upskilling isn’t just a cost-saving strategy, it’s a resilience strategy,’ said Drew Firment, AWS Hero and VP of Global Partnerships at Pluralsight.
The 2026 Tech Forecast positions workforce development as a defining challenge for the year ahead, with organisations under pressure to balance automation, capability and sustainability in their use of technology.