Over hyped or not, AI is easily the most significant and widely discussed topic in NZ's IT sector. AI is nothing new, Machine Learning can trace its roots to the 1940's. But the launch of ChatGPT brought AI beyond the IT community, and into the hands of joe public, everyday workers, and the boardroom.
Tech is of course far from immune to "hype." I cut my IT recruitment teeth in London in the late 1990's, and the less said about Y2K the better. Since then, from the internet to the cloud, we love to embrace the new. Add to that the sheer breadth of impact AI has on our lives, it is no surprise to see the hype.
But what is the impact on the IT employment landscape? What's just hype and what is real?
The current NZ IT employment landscape.
The current NZ IT employment landscape is without doubt challenging. Data shows that the number of IT job ads in NZ are the lowest for 10 years. However, this is primarily due to economic issues and a hangover from the post covid boom, rather than the impact of AI itself. As our economy slowly shows signs of recovery, we will inevitably see further investment in AI, and that will fuel growth in the sector.
The global data suggests 78% of organisations are already using AI, while the "AI in Action" report from the AI Forum of NZ, suggests adoption here is even higher at 82%. This report also suggests that there has been minimal job displacement, with just 7% reporting AI replacing workers. However, their findings suggest there is evidence of AI inhibiting new hires.
Unpicking this is challenging given the overall economic conditions. However, it seems logical that if organisations are going to invest in AI, they are less likely to invest in "other" areas of IT. Most notable here is Cyber Security. Consistently acknowledged as critical and under resourced in NZ, Cyber has seen a 20% decline in advertised roles, year on year. Similarly, the focus on AI has seen a reduction in broader IT Project Management and Business Analysis opportunities. While roles where Agentic AI can impact, such as helpdesk and support, testing and low-level coding, have also all contributed to a reduction in roles advertised year on year.
Where there is demand, it is in Engineering roles, Architecture and Data, which have all seen an increase in demand as organisations look at the shape of their tech and ensuring their data is "AI- ready."
What about AI skills?
McKinsey's "Global state of AI Insights" reported that while all AI related roles are hard to hire, most have become slightly easier to hire over the last 3 years. They reported that the AI related roles which remain most challenging to hire are Data Engineers, AI Product Owners, ML Engineers, Data Architects, AI Data Scientists and the newer roles, AI Compliance and AI Ethics specialists.
What do you need to do?
Take advantage of what AI training you can. It is encouraging to see the "AI in Action" report indicating that 81% of respondents undertaking AI training, showing that organisations are largely taking the need to upskill their people seriously.
Above all else though, and as we celebrate national IT professionals' day, embrace it and celebrate the continuing evolution of technology and the real difference IT professionals make in our lives. We are at the beginning of the AI revolution and inevitably there will be an impact on the roles that IT professionals play, with lower-level coding, support and testing roles diminishing. However, the need for IT professionals to continue to innovate and lead will not diminish, far from it, the role of IT professionals in guiding our organisations, communities and people through the AI revolution will be more critical than ever.
