AI dominates the headlines, but what is it doing to the UK jobs market? Here are the key trends shaping hiring for data and AI professionals this year, and what they mean whether you're recruiting or job hunting.

1. AI is now in a huge share of tech job adverts In the six months to 18 January 2026, around 9,500 permanent UK IT vacancies cited AI, up from roughly 2,600 in the same period a year earlier, and AI now appears in more than 15% of permanent IT job ads. Bear in mind that "citing AI" covers any role mentioning it, not just specialist AI positions. But it shows how quickly AI has become part of the everyday requirements for technology roles. itjobswatch

2. Demand is growing, but the foundations come first Vacancy soft data shows AI and data vacancies in 2025 were 18.4% higher than in 2024, with 2026 tracking about 13% up year on year. Interestingly, the biggest hiring volumes aren't in AI itself. Data analysis (22.9%) and data engineering (18.3%) account for the largest shares, suggesting organisations are building their data infrastructure before scaling up machine learning.  What this means for employers: before advertising for a machine learning engineer, check that your data is clean, accessible and well structured. Often the smarter first hire is a data engineer.

3. Salaries are rising for specialists Xcede's 2026 UK Salary Guide reports permanent salary increases of between 8% and 20% in several disciplines, particularly data engineering, analytics engineering and machine learning engineering, with head-of level AI and research science roles reaching up to £181,000. The picture is more mixed across the wider market. ITJobsWatch shows the median advertised salary for roles citing AI at £71,000, down from £77,000 a year earlier. A likely explanation is that as AI becomes a standard skill, it appears in a broader range of roles, including more junior ones, which pulls the overall median down even while specialist pay climbs. itjobswatch

4. AI roles top the fastest-growing lists LinkedIn's 2026 Jobs on the Rise report placed AI Engineer, Head of AI and Machine Learning Researcher among the fastest-growing roles in the UK. Demand also extends well beyond traditional technology companies. Financial services, healthcare, retail, energy and the public sector are all competing for the same pool of talent. 

5. Entry-level roles are getting tougher It isn't all good news for newcomers. Xcede's guide notes that computer science graduate numbers have reached record levels while entry-level software engineering hiring has fallen significantly, making the market very competitive for junior candidates. 






What should employers do?

  • Define the role precisely. "AI" can mean data science, engineering, analytics, governance or product. Be clear on which you need.
  • Move quickly. Strong candidates are typically fielding several conversations at once.
  • Publish realistic salary bands. Transparency improves response rates.
  • Think about the whole team. AI projects need data engineers, analysts and governance expertise, not just data scientists.
  • Invest in training. Developing your existing people can be faster and more sustainable than hiring alone.

What should candidates do?

  • Specialise, but stay adaptable. Deep skills in a discipline plus cloud, MLOps and communication skills make you highly employable.
  • Show impact. Explain the business outcomes of your work, not just the technology you used.
  • Keep learning. The tools change fast, so ongoing development is expected.

Looking ahead Demand for data and AI talent looks set to continue, with the market shifting from experimentation to embedding these capabilities in day-to-day business. The organisations that hire well, and the professionals who keep their skills current, stand to benefit most.

At TPNTECH Recruitment we recruit data and AI professionals for employers, from data engineers to AI leadership. Get in touch to discuss your hiring needs or your next career move.


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