**How Generative AI is Reshaping the IT Industry: Insights from SpiceWorld and the State of IT Report**
The world of information technology (IT) is no stranger to change. Over the decades, IT professionals have consistently adapted to new technological waves—from the rise of the internet to the advent of cloud computing. Now, the industry finds itself at the forefront of another seismic shift: the rise of generative artificial intelligence (AI). At SpiceWorld, the annual developer conference hosted by Spiceworks, experts convened to discuss the profound effects of generative AI on IT skills, budgets, and organizational priorities.
### Job Security in the Age of AI
Contrary to the common narrative that AI will lead to widespread job losses, the IT sector appears to be bucking the trend. While reports such as Gartner’s predict “jobs chaos” due to AI, data from the U.S. Bureau of Labor Statistics tell a different story for IT. Over the next decade, IT jobs are projected to grow at a rate of 9%, three times faster than the 3% projected growth for all other occupations. This accelerated growth is fueled in large part by the new security challenges that come with integrating AI technologies into business operations.
Peter Tsai, head of technology insights at Spiceworks, highlighted how AI has “opened a whole new can of worms for security,” driving increased demand for skilled IT professionals. Rather than shrinking, the IT job market is expanding, albeit with a shift in the types of skills employers are seeking.
### The Skills Shift: AI Fluency Now Essential
The Spiceworks 2026 State of IT report, which surveyed more than 800 IT professionals at small and medium-sized businesses, reveals that the most in-demand skills are evolving alongside AI’s rapid growth. Notably, 63% of respondents identified AI prompting skills as important—a dramatic 53% increase from the previous year. However, less than half of those surveyed felt confident in their AI abilities, though this number is up from last year’s 42%.
This gap between the demand for AI skills and professionals’ confidence underscores the urgent need for upskilling. Tsai emphasized the importance of proactively learning about AI, stating that doing so can markedly boost IT professionals’ productivity and value.
### The Training Gap: Investments in AI, But Not in People
Despite the surge in AI adoption, investment in training lags behind. While organizations are pouring resources into AI solutions, structured training programs for IT staff are not keeping pace. Studies, such as one from the Wharton School, indicate a decline in investment and confidence in training as the primary means for achieving AI fluency. Ironically, the lack of training resources is cited among the top barriers to successful AI adoption.
The 2026 State of IT report found that AI initiatives are among the top investment areas in IT. On average, AI software—both on-premises and cloud-based—accounts for 2.7% of IT computing infrastructure spending.