Survey finds AI adoption spurring shift in tech hiring from software to hardware

A survey conducted by the IIA has found that AI adoption is contributing to a shift in tech hiring from software to hardware. The survey found that 7% of surveyed companies cited AI as the main reason for workforce reductions. It also found that software companies recorded the biggest layoffs in the first half of 2026. The survey's findings were reported by timesofisrael.com.

The 7% figure indicates that the majority of companies surveyed did not attribute their workforce reductions primarily to AI. According to the survey, the software sector recorded the largest layoffs in the first half of 2026. This occurred in the context of AI adoption driving a change in hiring priorities. The article's headline characterises this as a shift from software to hardware, suggesting that tech firms are increasingly looking for employees with skills related to physical infrastructure rather than traditional software development.

The findings suggest that AI is not, for most companies, the direct cause of job losses, but that AI adoption is nonetheless associated with changes in the structure of tech employment. The shift in hiring from software to hardware may reflect a need for more physical computing resources to support AI systems. The article does not give details on the other reasons companies cited for workforce reductions. It also does not report the total number of companies surveyed. The article presents the survey as evidence of a broader trend in the tech sector.