Navigating the AI talent landscape

As companies strive to leverage AI for competitive advantage, the demand for software developers with AI expertise has skyrocketed.

This demand is not just limited to tech giants; startups and traditional industries are also vying for AI-savvy developers to stay relevant and innovative.

In the 499th episode of the Outsource Accelerator Podcast, Fred Joye of Arcanys, a software development company based in the Philippines, shared his insights on AI talent.

The rising demand for AI talent

The surge in AI adoption across various sectors has led to fierce competition for AI talent. 

Companies are increasingly seeking software developers who can integrate AI capabilities into their applications, develop advanced algorithms, and implement machine learning models.

In fact, the AI market value is expected to skyrocket up to $1,811.8 billion in 2030 – a huge climb from its value of approximately $136.55 billion in 2022.

Fred stated on the podcast, “If you see a pitch deck that doesn’t talk about AI, I guess your valuation just goes down, and you can raise less money.

There are true groundbreaking startups that do amazing stuff with AI. I’m pretty sure. There are also a lot that are leveraging existing solutions or creating products or services that are probably just going to make them disappear with the next update of ChatGPT.”

AI talent shortage

Despite the high demand, the supply of qualified software developers with AI expertise remains limited. This shortage is particularly pronounced in regions where educational institutions and training programs have not yet caught up with the fast-evolving AI landscape.

Fred elaborated on the situation in the Philippines:

“Now, when we look at the talent in the Philippines, when it comes to AI [and] machine learning, unfortunately, we’re very, very ill-prepared for that. We’re struggling to find AI talent.”

He added, “The curriculum in universities and schools is just not ready for that. It’s gone so fast, and they haven’t been able to get ready. So for us, if we have to look for AI talent, we look elsewhere. 

Unfortunately, we do look elsewhere.”

Outsourcing as a strategic solution for AI talent shortage

While finding top-tier AI talent remains a challenge, outsourcing certain aspects of AI product development can be a viable solution.

Outsourcing gives businesses access to dedicated talent while saving on labor costs. Further, Fred highlighted the strategic value of outsourcing in AI projects.

“When you encapsulate an AI product into a platform, there’s also a lot of software development that’s required to go around that and to deliver the interface or anything in the background that is running around that. That’s where outsourcing still makes sense.

Fred suggests outsourcing other parts of the business, but definitely not the core.

“You would not outsource the core of your IT to elsewhere. We wouldn’t recommend that a startup do this. [But] everything that is wrapping around these services can be outsourced, and that’s where [Arcanys] could help the company deliver their products or services.”

Bridging the AI talent gap

To address the AI talent shortage, companies and educational institutions must take proactive measures.

Here are some strategies to consider:

1. Invest in education and training

Universities and schools need to update their curricula to include comprehensive AI and machine learning courses. Partnerships between academia and industry can ensure that training programs are aligned with real-world demands.

2. Promote continuous learning

Given the rapid advancements in AI, professionals must engage in lifelong learning. Companies must offer continuous education opportunities and support to help current employees upgrade their skills.

These upskilling opportunities can include enrolling in online courses and workshops and getting certifications from relevant institutions.

3. Leverage global talent pools

As Fred mentioned, looking for AI talent outside traditional markets can be a viable solution. Remote work and collaboration tools have made it easier for companies to tap into a global talent pool.

4. Foster industry collaboration

Collaboration between businesses, government, and educational institutions can help create a more robust AI talent pipeline. Joint initiatives, such as research projects and internships, can provide valuable hands-on experience.

For example, the US Food and Drugs Administration established Project Uptech to develop tech talent. Project Uptech “prioritizes investing in the agency’s technology workforce through ongoing education and training opportunities.”

This initiative aims to close knowledge gaps and ensure that the workforce remains at the forefront of new technology.

By investing in education, promoting continuous learning, leveraging global talent, and fostering collaboration, companies can better position themselves to harness the power of AI talent

The landscape is rapidly changing, and those who adapt quickly will thrive in this AI-driven era.