Even though the year began with some high-profile tech layoffs, while many experts predicted that AI might be a drag on employment and hiring, it turns out a larger percentage of IT departments have been adding staff since any point before the 2008 Great Recession. In a bit of a twist, new findings from Avasant suggest AI might have companies actually building talent in order to transform their organizations into being AI-ready.
According to the research firms most recent “IT Spending and Staffing Benchmark” study, 64% of companies are increasing IT head count, and only 11% are decreasing the size of their internal IT staff. This is both the largest number increasing head count and the smallest number decreasing it since at least 2008. As further comparison, only 48% of companies planned to grow their IT staff last year.
“It is highly likely that a significant portion of this hiring is driven by AI and machine learning,” said Avasant researchers. As organizations move from experimentation to implementation, they are expanding the teams required to support data-intensive and AI-enabled initiatives, they continued.
Avasant noted recent growth in roles such as financial analysts, business analysts and database professionals, all likely part of an effort to scale AI and the use of large datasets. This year, the firm also added AI/ML architects and engineers as a distinct staffing category in it survey, and already these roles account for approximately 2% of IT head count on average, with variances by size and sector.
“In addition to staffing growth, we are also seeing significant investment in technology designed to help companies get AI-ready,” said David Wagner, senior research director at Avasant. “This includes data analytics and business intelligence, but also, more importantly, we are seeing a major increase in spending in recent years to upgrade legacy systems.”
Incidentally, CIOs are feeling particularly bullish. Exactly two-thirds report that, despite modest budget increases, they have an adequate budget to support the demands of their enterprise. This is the highest level of budget confidence Avasant has recorded in the past decade, surpassing last year’s previous high of 59%.
“CIOs are not only investing in growth but also feel increasingly equipped to support their organizations’ strategic priorities,” said the research firm.
