How AI is transforming IT talent: From code to budgets and beyond

Artificial intelligence (AI) is no longer a futuristic concept reserved for research labs or tech giants. It’s rapidly becoming the backbone of modern IT, fundamentally changing how code is written, software is tested, and tech talent is empowered. However, this transformation is not just about efficiency—it’s sparking a profound shift away from the era of virtualization and lean budgets, ushering in a new age of innovation and investment.

Here we share AI’s evolution in IT and ways it’s affecting the industry.

AI’s expanding role in writing code

AI’s ability to generate, review, and optimize code is revolutionizing software development. Generative AI tools can now assist developers by:

• Auto-completing code snippets
• Identifying bugs and vulnerabilities
• Suggesting optimizations
• Translating requirements into functional code

Major technology companies are already seeing tangible benefits. For example, Google reports that 25% of its new code is now developed using AI tools, dramatically accelerating development cycles and freeing up engineers to focus on higher-level problem-solving and innovation. Even junior developers can produce complex outputs, such as generating highly accurate documentation for legacy systems, thanks to AI-powered code assistants.

This new way of coding means that organizations can tap into a broader talent pool as less experienced developers become more productive and capable with AI support. It also allows engineering teams to shift from routine coding tasks to orchestrating and aligning technical outputs more closely with business goals.

Revolutionizing software testing

Testing has traditionally been a bottleneck in the software development lifecycle, often consuming significant time and resources. However, AI is changing this pattern in several ways:

• Automated test case generation: AI can interpret requirements and user stories to automatically generate and execute test cases, reducing manual effort and increasing coverage.
• Defect detection: Machine learning algorithms can analyze test results and application logs to identify defects earlier and more accurately.
• Continuous validation: AI-driven platforms can continuously test software across environments, ensuring quality and reliability at every stage.

Augmenting and redefining tech talent

As AI takes on more coding and testing responsibilities, the very nature of tech talent is evolving. Organizations are rethinking roles, responsibilities, and career paths for IT professionals:

• From coders to orchestrators: Developers are becoming orchestrators of functionality, leveraging AI tools to deliver business value rather than simply writing code.
• Upskilling and reskilling: There is a growing need to train talent on how to effectively use AI tools, manage AI-generated outputs, and ensure code quality.
• Cross-functional collaboration: Enhanced collaboration between product, engineering, and security teams is becoming essential to harness the full potential of AI in software development.

This shift is not just about efficiency—it’s about unleashing creativity and innovation across IT teams. By automating repetitive tasks, AI enables tech professionals to focus on solving complex business challenges as well as driving strategic initiatives.

Sparking a shift away from virtualization and lean budgets

For years, IT strategy has centered on virtualization, cloud efficiency, and cost containment. However, the rise of AI is changing investment priorities across the board:

• Increased tech budgets: According to Deloitte, global IT spending will grow by 9.3% in 2025, with spending on AI expected to have a compound annual growth rate of 29% from 2024 to 2028.
• New spending priorities: As organizations race to adopt AI, investments are shifting toward data management, hardware, and cloud modernization. Enterprises with high AI expertise are increasing their hardware and cloud investments much more than average.
• Move beyond lean IT: The demand for AI-driven innovation is prompting companies to move away from modest, “just enough” IT budgets. Instead, IT is being recognized as a core driver of business growth and competitive advantage.

Gartner predicts worldwide IT spending will reach $5.61 trillion in 2025, up 9.8% from the previous year, driven largely by AI adoption. This also marks a significant departure from the era of virtualization and cost-cutting, signaling a new willingness to invest in transformative technology.

The road ahead: AI as the foundation of IT

AI is quickly becoming the most defining development of modern IT, underpinning nearly every aspect of technology strategy and operations. As organizations accelerate their adoption of AI for coding, testing, and talent augmentation, they’re not just improving efficiency—they’re also redefining what IT can achieve.

To fully take advantage of the benefits, enterprises must:

• Invest in cloud and data modernization
• Prioritize training and upskilling for AI fluency
• Adopt robust quality assurance and validation protocols
• Foster cross-functional collaboration

The future of IT is not just automated—it’s amplified, creative, and deeply integrated with AI. Those who embrace this shift will lead the next wave of digital transformation, leaving behind the limitations of virtualization and lean budgets for a new era of innovation and growth.

AI isn’t going anywhere, and investing in it can help your business stay ahead of competitors and also ensure your IT department is running efficiently. When implementing AI, one of the main components you need to invest in is the talent with the experience to work with this technology – and Addison Group can find this talent. For more than 20 years, we have understood that great teams start with great people. We connect top candidates with reputable companies to drive your business goals. Let’s talk about how our team of experts can work with you.