Technology advancement remains a hot button topic for recruiters and candidates alike.

Though less dire than earlier in the year, hiring freezes and economic uncertainty still impact tech investment and tech recruiting decisions, and will well into 2026. Deciding how and where to invest in technology requires businesses to recognize the challenges and embrace creative solutions.

Read on to learn:

• 3 Challenges of Using AI and Tech for Hiring in 2026
• 5 Challenges of Hiring for Tech Roles in 2026
• Tips to Navigate Technology Challenges and Hire Successfully

3 Challenges of Using AI and Tech for Hiring in 2026

Technology, used well, is a game changer for recruiting. But pressure to deliver ROI, expedite hiring efficiency, and demonstrate innovation can derail even the best-intended organizations. Avoid getting sidetracked by these three tech adoption hurdles that will continue impacting hiring processes in 2026 and beyond.

1) AI Bias

An AI tool’s capabilities rely heavily on the data it’s been trained on and the parameters it’s been given. For this reason, depending on AI (especially early in the recruiting process) as the main “gatekeeper” to review resumes and evaluate candidates can lead to highly qualified candidates being filtered out. Al also struggles to screen for creativity, soft skills, transferrable skills, and cultural fit, all of which can strongly signal success in a role.

2) Poor Integration

Recruiting workflows are nuanced, while many AI and technology tools tend to be one-size-fits-all. Unless you’re working with a platform designed with recruiting in mind, shoehorning an off-the-shelf product into an existing ATS won’t give you the results you want. A poor integration is tricky at best, and derailing at worst, especially with legacy systems. Data governance and security safeguards must also be reevaluated with every new technology that is added.  

3) User Mistrust 

While AI tech recruiting platforms are efficient for both recruiters and applicants, they can erode trust. According to Gartner, only 26% of job candidates trust AI will fairly evaluate them and 25% of candidates trust employers less if they use AI to evaluate their information. For recruiters, mistrust lies in what AI “chooses” to move through initial screenings: 35% of recruiters worry AI may exclude candidates with unique skills and experiences. 

AI is already streamlining hiring workflows. But faster results without better outcomes won’t get companies far. Strategic investment in recruiting-specific tools is the key to successful adoption and better ROI.

5 Challenges of Hiring for Tech Roles in 2026

If you’re like most organizations, you need tech talent yesterday. But given the current state of the candidate market and tech industry, it might be many tomorrows before you find the right match. If this feels like you, you’re not alone. Here are five reasons why everyone is scrambling when it comes to finding tech talent:

1) Candidate Use of AI

Modern technologies are evolving at record pace, requiring niche skills and specific aptitudes to fill many open tech roles. But candidates using AI in the application process is leading to increased instances of inflated resumes, false credentials, and outright fraud. According to Gartner, 4 in 10 candidates use AI during the application process, 6% admit to participating in interview fraud, and by 2028 one in four candidate profiles worldwide will be fake. The result? New hires without the tech skills they claim or, even more concerning, fake hires who pose a security risk.

2) AI and Tech Skills Shortage

There’s no shortage of demand for modern and emerging tech skills. Yet the same can’t be said for supply of those skills, particularly related to AI. 94% of leaders face AI-critical skill shortages today, with one in three reporting gaps of 40% or more. The shortage intensifies with the increase of return-to-office mandates, which reduce available talent pools from worldwide or nationwide to, realistically, a 50-mile radius. This sets the stage for faster, fiercer competition in 2026, and makes ensuring real talent is hired for critical tech roles even more important. 

3) Accelerating Pace of Tech Evolution

Rapid tech advancement and increasing skills specialization is leaving organizations hard pressed to find both candidates that can fill IT generalist roles and candidates well-versed in niche applications. As more seasoned tech professionals opt to become specialists, and those entering the workforce set their sights on a subset of emerging technologies, this gap will only increase.  

4) Generational Differences

While younger generations are considered digital natives compared to seasoned counterparts, it’s the younger generations that may lack the soft skills required to truly excel in higher-level tech roles. On top of that, a company’s use of AI in hiring (and in day to day work!) gives Gen Z pause: according to Forbes, 41% of Gen Z employees admit they’re actively working against their company’s AI initiatives. These factors exacerbate the challenge of finding enough qualified talent within younger generations to backfill vacancies left by workforce retirements or focus shifts of seasoned workers.

5) Layoffs Flooding the Market

Mass tech layoffs in 2025 led to an influx of talent with the same skills as one another, but not necessarily the skills most needed by organizations (leaving recruiters with even more non-matches to sift through). Business Insider notes that “the top four roles that got cut in AI-inspired reorganizations” were software engineers/developers, QA engineers, product managers, and project managers. But the top skills requested/tech areas with the largest increase in job listings were: AI, Python, SQL, and AWS, Google Cloud, and CI/CD.

The takeaway? If it feels like you’re having a hard time finding the right talent, it’s because you’re up against a lot. It can be hard to predict how the coming years will impact the market or what new challenges might emerge, but if you take a proactive approach to finding unique solutions you’ll already have a jump on the competition. 

Tips to Navigate Technology Challenges and Hire Successfully 

Despite the challenges, it is possible to find the right tech for your recruiting process, and find top tech talent to propel innovation in your organization. The key is to break down barriers and proactively plan versus reactively respond. Consider this advice from our experts:

When using tech for hiring: Ensure tech buy-in before tech investment.

Not all technology plays well with others. Recruiting workflows are unique, and any tools considered for integration must support (not hinder) recruiters and managers in their quest to find the best candidates. Allowing end-users to weigh in during initial consideration will go a long way toward streamlining adoption and making sure tech isn’t screening out top candidates only to be snapped up by your competition. 

When hiring for tech roles: Set yourself up for success from the start.

Your approach to hiring matters more than ever. Refine every step to reduce friction.

• Train your AI well. Soft skills, transferrable skills, and life experience can be as important as the specific skills needed for a role. Make every effort to ensure any AI screening tools used in the hiring process are not overly exclusionary to the detriment of the big picture.
• Create hyper-focused job postings. This does not mean list everything and the kitchen sink. This does not mean trying to fit three jobs in one role. This means creating a realistic post that clearly states your 1-3 must-have skills, and then outlines 1-5 skills that are a plus, but not required. Descriptions that are either too broad or, conversely, too overwhelming in their responsibilities and requirements, can prevent top talent from ever applying.  
• Consider asking an expert for help. Tech recruiting, in particular, is competitive and fast moving. If you feel you’ve exhausted all existing avenues and sources, it might be time to think about partnering with a staffing professional that specializes in hiring for highly skilled and highly specialized technology roles.

Cypress is Your Dedicated Tech Recruiting Partner

Cypress recruiters have decades of experience specializing in advanced tech roles. They know what to look for, and can open direct lines into untapped talent to uncover expert candidates you can’t access anywhere else.

Whether you’re a tech company struggling to find talent, or a company within any industry that needs to fill a specific tech role, we can help. 

Meet with our team of experts to learn how you can accelerate tech success in 2026.