AI is shaking up the workforce as it sparks layoffs and hiring sprees and potentially contributing to a skills crisis.

According to a new General Assembly research report, 54% of tech hiring managers say their companies are likely to conduct layoffs in the coming year, with many citing AI as a driving factor.

However, these same hiring managers acknowledge that AI is creating demand for new roles, with 69% saying its highly likely AI adoption will require new roles.

Employees most at risk of job loss are those whose jobs can be replaced by AI, 45% of tech hiring managers say, and 33% say employees with outdated skill sets are most likely to be let go.

This all points to a skills crisis looming for thousands of tech workers as AI is continually adopted.

“We’re on the precipice of an unprecedented skills crisis,” Daniele Grassi, General Assembly president and CEO said.

“Businesses are ramping up AI investments and reducing headcount in the name of productivity, but they’re creating a widening skills gap that will ultimately slow transformation. It’s time to get AI skills to every employee.”

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Areas of need identified in the research includes AI development, cybersecurity, data analysis, and proficiency with AI productivity tools.

These skills are needed now, but a quarter of hiring managers say AI development is the top missing technical skill across organisations, with cybersecurity and AI productivity tools tied closely behind.

Soft skills are also in a crisis, with strategic thinking, problem solving, and adaptability listed as desirable and rare according to tech hiring managers.

Despite the recognised need for AI skills, nearly one in three organisations have not conducted a formal assessment of their talent’s readiness for AI and automation.

However, the vast majority (93%) of companies intend to invest or are already investing in reskilling and upskilling roles impacted by automation.

When taking a closer look at AI’s effect on tech roles, it seems that IT teams are taking the lead of its implementation.

Two thirds (65%) of tech hiring managers say that IT is responsible for managing AI rollout.

As a result, 42% say they are hiring more software engineers because of AI, while only 11% are cutting software roles due to the emerging tech.