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Recruiting and retaining skilled technology talent remains the primary business challenge for 2026, with 50% of respondents identifying it as their top concern, according to a new survey. This underscores a growing disparity between the rapid adoption of artificial intelligence (AI) and the availability of qualified professionals capable of implementing,governing,and scaling these technologies effectively.
The annual Reveal Top Software Development Challenges Survey from Infragistics, released January 30, 2026, reveals a technology landscape characterized by both momentum and constraint. while organizations largely reported positive outcomes in 2025 driven by AI,they are now approaching 2026 with a more cautious and execution-focused mindset,facing talent shortages,budgetary pressures,and global economic instability.
“The Reveal survey clearly demonstrates the productivity gains delivered by AI, but the current economic climate demands a strong return on every technology investment,” says Casey Ciniello, Reveal and slingshot senior product manager at Infragistics. “The data indicates a shift from experimentation to disciplined execution. Talent scarcity, tighter budgets, and global instability are forcing organizations to make difficult decisions about where - and how quickly - to scale. Those that succeed will prioritize AI investments with clear, short-term business benefits.”
Technology initiatives were the main drivers of productivity improvements in 2025. Two-thirds (66%) of respondents attributed gains to AI adoption, while similar percentages cited embedded analytics (62%) and automation of repetitive tasks (62%). Investments in skills development were also key, credited by 63% of respondents. this data confirms a trend toward achieving productivity through smarter systems rather than increased working hours.
However, a quarter of organizations are planning spending cuts in 2026 due to economic headwinds.Inflation (60%), rising costs (58%), economic instability (53%), tariffs (50%), and higher interest rates (40%) are the primary factors influencing these decisions.This creates a tension between technologies that enhance performance and the budgetary limitations that may hinder further investment.
while AI adoption continues, the focus has shifted from *whether* to use it to *how* to integrate it securely and effectively. 57% of respondents identified AI integration into the development process as their top challenge, an increase from 44% in 2025. Security threats (49%) and data privacy/regulatory compliance (48%) are also significant concerns,highlighting the growing risks and governance complexities associated with AI-driven systems.
Embedded analytics and business intelligence (BI) continue to gain traction. Currently, 76% of organizations utilize embedded analytics
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