AI Was Meant to Replace Developers.Instead, It Made Them Critical For the past two years, the conversation around AI in engineering has focused on thewrong question:Will AI replace developers?The data in this year’s State of TechHiring report makes the answer clear. AI hasn’t made developers obsolete — it’smade them essential infrastructure. Even as concerns about job security rise, demand for engineers is accelerating.Companies leading in AI are hiring more, not fewer, developers, and interviewvolumes are surging. The bottleneck isn’t code generation anymore — it’s judgment,systems thinking, and the ability to work effectively alongside AI. Yet many hiring processes are still optimizing for outdated signals. As AI reshapesdaily workflows, technical excellence is being redefined. This report explores whatthat shift means for developers, recruiters, and hiring leaders — and why the futureof tech hiring will be decided by who works best in an AI-augmented world. Amanda Richardson, CEO, CoderPad Key Numbers 54% 82% 53% of developers would lose someof their productivity if AI toolswere removed tomorrow of hiring leaders expect budgetincreases – up from 37% in 2025 of developers find GenAI useful –up from 76% in 2025 Executive summary 1.AI is accelerating technical hiring, not replacing it.Companies leading in AI are hiring moreengineers across experience levels, including early-career roles.2.AI is now essential infrastructure for developers.Most developers rely on AI daily, andproductivity would drop without it.3.What developers do is shifting.Writing new code matters less; system design, debugging,fine-tuning, and collaboration matter more.4.AI proficiency is now a core hiring signal.The ability to work effectively with AI tools is becomingas important as foundational programming skills.5.Hiring practices are lagging reality.Candidate AI usage is widespread, but many hiring teams arestill catching up.6.Live interviews work best — but aren’t used enough.Technical discussions and live coding bestreflect real-world skill, yet many teams still rely on outdated assessment formats. About CoderPad For the ninth consecutive year, CoderPad has surveyed the developerand recruiter communities to understand the landscape and trendswithin technical hiring. This 2026 report represents insights from morethan 650 global participants, combining quantitative data withqualitative analysis to help organizations navigate the future of techtalent and technical hiring. CoderPad is a comprehensive technical assessment platform trusted bymore than 4,000 of the world’s top technical companies worldwide,including over 20% of the Fortune 100 and 2/3 of the Forbes AI 50 list.The platform has hosted more than 4 million technical interviews across99+ languages. Candidates prefer the CoderPad platform by 7:1 overtraditional coding platforms. a. AI in Development Workflowsb. Skills Development and Learningc. Tension with Job Security 02.Rethinking Technical Assessments 03.Talent Mobility and Retention in 2026 04. Recruiters & Hiring Teams: Outlook for 2026 AI in Recruiting Operations a. Recruiter Outlook on GenAI Toolsc. Training on AI Tools and Use Has Improved – Significantlye. AI Tools in Practice AI: TheTransformationContinues01. Last year, we tracked AI adoption. In 2026, we’remeasuring AI dependency. Our survey resultsreveal that AI has moved from an optional tool toan essential part of a developer’s workflow. Thisintegration brings both opportunity and anxiety. a. AI in Development Workflowsb. Skills Development and Learningc. Tension with Job Security AI in DevelopmentWorkflowsa. The trajectory of AI adoption amongdevelopers shows no signs ofslowing down. In fact, when we askeddevelopers how useful GenAI is totheir work, 82% now report that theyfind it at least somewhat useful – upfrom 76% in 2025. How useful is GenAI to you as a developer? 82% find GenAIuseful(combiningvery useful, useful,and somewhat usefulcategories) How does this compare to last year’s results? Year-over-yearcomparison: How useful is GenAI to you as a developer: 2025 vs 2026 ●2025: 76% foundGenAI useful●2026: 82% findGenAI useful●Change: +6percentage points GenAI tools have played arole across the entiredevelopment lifecycle.Developers aren’t just using AI to write code, butalso to understand, debug,and optimize it. Where does AI help the most? Whether or not a developercan efficiently review, edit,adapt, tweak, build on, orcorrect Where does AI help most in your workflow? AI-generated code is exactlywhat you need to beassessing as part of your techhiring process. This year, we wanted to learnhow dependent developersare on AI tools to beproductive. Specifically, weasked what would happen ifAI tools were removedtomorrow. These resultsreveal how deeply integratedAI tools have become in dailyworkflows. If AI tools were removed tomorrow, yourproductivity would 54% of developers wesurveyedwould experienceproductivity drops of