Data Science and AI Hiring — Top Trends Professionals and Employers Need to Know

The fields of data science and AI are undergoing significant changes owing to the rapid evolution of technology and economic conditions, affecting everything from job roles to industry standards.

Based on industry research by leading data science and AI recruitment platform Burtch Works, this article takes an in-depth look at the current landscape of data science and AI talent, exploring emerging trends, hiring practices, compensation norms, and the development of new specialized roles.

Vital industry trends disrupting talent supply and demand

AI is undergoing rapid growth and expansion due to advancements in cloud technology, data center colocation, improved algorithms, and automation. Not just businesses, private equity and venture capital funds are also keen on investing in AI due to its potential for disruptive innovation and economic growth.

This investment is driving research and development, accelerating technological advancements, and expanding AI applications across various industries.

Burtch Works’ research reveals that the field of data science is shifting towards increased specialization, with professionals focusing on niche domains such as Large Language Models (LLMs), Natural Language Processing (NLP), Generative Language Model Experiences, ML Engineering, and Data Product development. This trend allows data scientists to deepen their expertise, tackle complex challenges, and drive innovation within their specialized areas.

Organizations are increasingly collaborating with AI experts to stay updated and strategically prioritize use cases, leading to a high demand for professionals skilled in generative AI and Large Language Models.

Additionally, the emphasis on Data and Data Science as a Service (DaaS, DSaaS) and AI-oriented data science roles has grown. The availability of complex AI models as services has reduced the need for in-house model development, increasing the demand for professionals who can tailor these models to meet specific business needs.

The demand for advanced technological skills has led to the creation of new job titles and functions within the data science and AI fields. For example, roles such as AI Engineers and Directors of Data Science focusing on generative AI have become more prevalent. This shift not only reflects the rapid technological advancements but also highlights the industry's need for specialized skill sets that can drive strategic innovations.

From the employee standpoint, data science and AI professionals are now prioritizing job stability and meaningful impact over higher salaries, seeking roles that align with their values and interests. This shift towards fulfillment is driven by recent economic uncertainties and layoffs, leading candidates to be more selective. They are choosing positions that offer security and the opportunity to make a significant contribution.

Current hiring practices

The surge in demand for data science and AI talent, which peaked during the period commonly referred to as the "great resignation," has given way to a more judicious hiring environment. According to recent findings, employers are now emphasizing the importance of immediate value contribution from candidates, moving away from rapid hiring practices.

According to the Data Science and AI Professionals Salary report (2023) by Burtch Works, approximately 54% of data teams are focusing on making permanent hires with immediate contributions, signaling a shift towards quality over quantity in talent acquisition.

Demographic trends and diversity

Despite growth in the data science and AI fields, diversity in terms of gender and ethnicity remains a significant challenge. The Burtch Works salary report indicates a slight improvement in gender diversity, with women representing 28% of the data science workforce, up from 24% the year before. As for AI professionals, the gender distribution remains at 80% men and 20% women.

Women are gradually entering the field, but the steady interest from male candidates keeps the demographic shifts gradual. While women are making gradual progress in the field, the influx of male candidates has resulted in slow demographic changes. However, these numbers also highlight the ongoing need for more inclusive hiring practices to ensure a diverse range of perspectives in data-driven decision-making.

Professional sentiments and priorities

Economic uncertainties have influenced the priorities of AI and data science professionals. Stability and impactful work have become paramount, overshadowing the once-dominant salary concerns. The report underscores this with 86% of surveyed professionals indicating that they value company mission and impact more than before when considering new roles.

This shift suggests that employers need to align job roles more closely with organizational values and long-term goals to attract and retain top talent.

The data science and AI sectors are witnessing nuanced shifts in professional expectations and business needs. For professionals, staying updated with these changes is crucial for making informed career decisions. For organizations, understanding these insights is vital for developing strategies that align with the expectations of current and prospective employees.

For those interested in a deeper exploration of these trends, the Burtch Works 2023 Data Science and AI Professionals Salary Report offers extensive data and insights that can help professionals and leaders make informed decisions in the evolving job market of data science and AI.