AI Talent Report: Key AI Hiring Trends and Insights 2025

The labor market is undergoing unprecedented shifts across industries, driven by economic uncertainty, evolving business models, and accelerating digital transformation. While demand for tech talent is generally high, even the tech sector has experienced recent slowdowns and layoffs, particularly in more traditional or saturated roles.

However, one area defying that trend is Artificial Intelligence (AI) and automation. These fields continue to see strong investment and hiring activity as organizations prioritize innovation, efficiency, and future-ready capabilities. AI, in particular, is emerging as a critical area for workforce growth, reshaping job functions and creating new roles across industries.

In this blog post we are going to discuss what changes Magnit data is showing regarding the demand of these roles over the first quarter of 2025 compared to Q1 last year, and delve into the related actionable insights for organizations.

AI Talent Demand is Rising Rapidly

Magnit data reveals that AI/Automation role fills are in very high demand, as they have doubled year on year. In the first quarter of 2024 these types of roles made up just 3% of total fills compared to 6% in the first quarter of this year. Additionally, AI/Automation is growing even as temp work has been flat or declining. Total fills for all sectors and job categories increased 7% year on year, while AI/Automation roles doubled. Meanwhile, for all IT/Tech role total fills contracted -2% year on year; at the same time AI/Automation roles doubled. This indicates that AI/Automation roles are increasing regardless of the macro environment.

Additionally, automation is increasing faster than data engineering and data science. Among AI/Automation roles, Data Engineering roles accounted for 46% last year but dropped to 32% this year. While Automation made up 32% of filled roles last year, it increased 12 percentage points to 44% this year. These shifts show that organizations are focusing on streamlining and efficiencies, and not necessarily just artificial intelligence.

U.S. and India are Prime Locations for AI Talent

Both the U.S. and India have doubled their AI/Automation workforce year over year, while countries like Mexico, Canada, Belgium, Ireland, Australia and Philippines have seen contraction or stayed flat. Although there are clear hubs for this type of talent like San Francisco, among Magnit clients the most filled locations are Los Angeles, Dublin, and Rochester. While certain organizations are willing to pay a premium for U.S. talent, India is the go-to destination for AI/Automation types of roles when outsourcing.

Key Takeaways for Organizations Looking to Hire AI Talent

Organizations looking to strategically hire AI and automation talent should prioritize candidates who can drive operational efficiency as demand for these roles continues to grow. While traditional tech hubs remain important, broadening the search to include growing centers of AI innovation such as Los Angeles and emerging markets like Dublin and Rochester can help uncover high-quality talent in less saturated environments. In addition, leveraging global sourcing, particularly in India, provides access to a strong talent pool and offers cost-effective ways to scale AI and automation initiatives.

Despite broader slowdowns in tech hiring, demand for these roles remains strong, making them a strategic priority in workforce planning. To maximize impact, organizations should align hiring with business outcomes by targeting roles that contribute to productivity, cost savings, and execution speed.

Learn more about the impact of AI on the future of work in our ebook.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.