Software development has long been essential to the tech industry, growing steadily due to web and mobile applications, cloud computing, and digital transformation. According to the U.S. Bureau of Labor Statistics, software development jobs are projected to grow by 25% from 2021 to 2031. The World Economic Forum also ranks it among the most in-demand global roles. Demand surged post-pandemic as businesses accelerated digital initiatives. However, job postings peaked in late 2022 before declining 51% in 2023 due to economic tightening. Despite notable layoffs, overall tech employment remains higher than pre-pandemic levels. Industries such as finance, healthcare, and manufacturing continue to hire developers, with software skills topping LinkedIn’s 2023 list.
The demand for data and AI engineers is surging as companies embrace AI-driven decision-making. AI-related hiring grew 323% over eight years, with AI engineering ranked as LinkedIn’s fastest-growing global job in 2024. Generative AI job postings alone increased 20× between January and October 2023. Unlike software development, AI roles showed resilience amid the 2023 hiring slowdown. Companies across industries are prioritizing AI investments, ensuring continued demand for talent in this space.
While both fields are growing, differences remain. Software development continues to employ more professionals overall, but data/AI engineering is expanding at a faster pace and, in some cases, outpacing software roles. Emerging markets are investing heavily in both software and AI talent, and talent shortages persist across both domains. However, hiring trends for AI have been steadier.
Strong demand has kept salaries competitive. In the U.S., software developers earn between $94K and $115K annually. Data and AI engineers command higher pay, ranging from $100K to over $150K, with a notable 30% salary increase between 2023 and 2024.
Skills across software and data/AI engineering are converging. In 2023, the most in-demand skills included: Software Development SQL Python Java Data Analysis JavaScript Cloud Computing Software developers are increasingly expected to have cloud and data skills, while data engineers must possess strong programming foundations. AI-assisted development tools are boosting productivity, and employers are seeking full-stack talent who can work across software, data, and AI domains.