With the technology sector evolving at a blistering pace, that pace extends to how technology services are contracted and what skills are in demand. What were once, perhaps until recently. essential skills for technology professionals are now becoming less relevant as the industry evolves, driven primarily by automation, AI, and new contracting practices. Let’s take a look at some of skills and processes that these changes are affecting, and what new roles they are creating.
Data Entry and Processing
Data entry clerks have been significantly impacted by AI and automation. According to a PwC study, data entry is one of the professions most vulnerable to AI-driven job losses. The repetitive nature of data entry tasks makes them prime candidates for automation.
- 23.5% of US companies have replaced workers with ChatGPT, with data entry roles being among the most affected.
- By end of 2025, an estimated two million workers in manufacturing could be replaced by automated tools, many of which involve data processing tasks.
Administrative Skills
Administrative tasks that once required human intervention are increasingly being handled by AI-powered software.
- Administrative secretaries are the second most vulnerable profession to AI-driven job losses.
- 34% of all business-related tasks are already performed by machines, with administrative roles being heavily impacted.
Basic IT Support
As AI-powered chatbots and self-service portals become more sophisticated, basic IT support roles are being automated.
- The demand for basic IT skills is expected to grow by 69% in the United States and 65% in Europe by 2030, but this growth is primarily in more advanced areas rather than basic support.
Web Design and Development
AI tools are now capable of generating basic websites and performing routine coding tasks, impacting entry-level web design and development roles.
- Web designers are among the professions expected to see significant changes due to AI, although much of this will be modification rather that replacement, with any serious platform still requiring the human element.
Software Testing and Monitoring
Automated testing tools have long been a part of software development, but AI is now enhancing these tools at pace, reducing the need for manual testers, the overall trend of automation in IT roles suggests a significant impact on this area.
AI-powered systems can now monitor network performance, detect anomalies, and even implement fixes without human intervention. The demand for advanced IT skills is expected to increase by 90% between 2016 and 2030, indicating a shift from basic monitoring to more complex tasks.
Customer Service
AI chatbots and virtual assistants are handling an increasing number of customer inquiries, reducing the need for human customer service representatives. Customer service jobs are among those at highest risk of being lost to automation. However, despite this, roles have been created in this area relating to the training of AI customer service systems. This involves essentially ‘training’ AI systems to provide the best responses to customers.
Analysis and Accounting
AI tools can now perform complex financial analyses and handle routine accounting tasks, impacting roles in finance and accounting. Although, like many of the above areas, human oversight of the data generated remains essential.
- Financial analysts and accountants are among the professions most likely to be affected by AI4.
- 46% of tasks completed in administrative roles and 44% of tasks done by workers in legal jobs could be performed by AI2.
Translation Services
Machine learning algorithms have significantly improved automated translation, affecting the demand for human translators.
- Translators are listed among the professions that could be most affected by AI4.
Data Analysis
While the demand for data analysis is growing, many routine analytical tasks are now being automated, and as a result the human roles are becoming more detailed in terms of working on AI generated data sets. Data analytics is one of the functions experiencing the largest skill mismatches due to automation.
To provide a broader context, here are some facts and figures on the overall impact of AI and automation on jobs:
- AI may replace 300 million jobs worldwide, representing 9.1% of all jobs according to Goldman Sachs.
- By 2030, 14% of employees (375 million workers) will have been forced to change their career because of AI, according to McKinsey.
- 47% of US workers are at risk of losing their jobs to automation over the coming decade according to CEPR.
- It will take at least 20 years to automate just half of current worldwide work tasks according to data from McKinsey.
- 19% of US workers could see more than half of their tasks impacted by AI systems equivalent to GPT-4.
- A July 2023 McKinsey report predicts that AI will have more of an enhancing than replacing effect on creative, STEM, business, and legal work4.
- The same report suggests that lower-paying office support, customer service, and food-service jobs are more likely to be replaced4.
While many traditional technology skills are being automated, new opportunities are emerging:
- The demand for advanced IT and programming skills is expected to grow by 90% between 2016 and 2030.
- Social and emotional skills, as well as higher cognitive skills like creativity and complex information processing, are becoming increasingly important in the technology sector.
- The need for skills related to AI development, machine learning, and data science is rapidly growing.
- Cybersecurity skills remain in high demand as AI and automation increase the complexity of digital systems.
While AI and automation are replacing or reshaping many traditional technology skills, they are also creating new opportunities. The key for technology professionals is to focus on developing higher-level skills that complement AI capabilities, such as complex problem-solving, creative thinking, and advanced technical specialisations. As the technology landscape continues to evolve, adaptability and continuous learning will be crucial for maintaining relevance in the contracting market.