80% of software engineers will need to upskill by 2027 or risk being left behind, as artificial intelligence (AI) rapidly transforms the industry, according to a new report from technology research firm Gartner.
The report highlights that AI is expected to dramatically reshape software development processes, particularly in how routine tasks are handled. Initially, AI tools will boost productivity by supporting developers, especially senior engineers, in streamlining their workflows.
However, as AI continues to evolve, a new era of ‘AI-native software engineering’ is expected to emerge. In this landscape, the bulk of code is likely to be generated by AI systems, while engineers will focus on providing these systems with context and setting appropriate constraints. This shift means that engineers will need to adapt by developing new skills in AI-related areas.
AI Skills in High Demand
Key areas of expertise engineers are expected to develop include natural language prompt engineering and retrieval-augmented generation (RAG). As AI takes over more of the traditional coding tasks, a new role—‘AI engineer’—is also expected to grow in prominence. These professionals will blend skills in both software engineering and machine learning, allowing organisations to build increasingly advanced AI-driven systems.
The demand for AI skills is already being reflected in the job market. Gartner’s report notes that companies are offering up to a 31 per cent salary premium for employees with expertise in AI. This premium reflects the value businesses place on engineers who can work effectively with AI, as they seek to stay competitive in a rapidly changing digital environment.
Human Creativity Still Vital
Despite the growing capabilities of AI, the report also emphasises that human creativity and expertise will remain crucial. There is concern within the industry that AI could reduce the need for human engineers as it becomes more capable of generating code autonomously. However, Gartner stresses that engineers will still play a vital role in overseeing complex projects, particularly those that require innovative solutions.
The rise of AI is expected to create opportunities for engineers, especially those who are proactive in developing new skills. Sheila Flavell, Chief Operating Officer of FDM Group, noted that the integration of AI into software engineering opens a “unique opportunity” for professionals to enhance their skillsets.
Opportunities for Upskilling
Flavell said: “The rapid adoption of AI within software engineering opens up new opportunities for software development, as well as upskilling in both core software engineering and AI. As the use of AI tools becomes more frequent, engineers will need to strengthen their expertise in software engineering practices, as well as effectively oversee and guide AI-driven systems.”
She added that organisations should invest now to ensure their teams are ready for the future, creating a workforce capable of thriving in an increasingly AI-driven industry.
The report’s conclusions are a stark reminder to software engineers of the need to adapt or face being left behind. With AI expected to play a central role in future software development, upskilling in AI-related areas could be critical to staying relevant in the industry.