The challenge for software engineers in 2026 — and beyond

Each year brings a new set of opportunities and challenges for CIOs, their enterprises and their teams. For software engineers, 2025 brought increased attention to AI integration and capturing efficiencies, as most organizations grappled with the volatility tied to macroeconomic conditions. 

“We are at an interesting crossroads,” Arun Batchu, VP analyst at Gartner, said during a session at the firm’s IT Symposium/Xpo last fall. Enterprises had two key priorities: innovate with AI and bolster their software engineering practices and discipline.

While businesses pursued AI-native software engineering, teams faced difficulties last year, such as failure to shift mindsets, erosion of critical and foundational skills and the nondeterministic nature of large language models, according to Batchu.

Other challenges include managing costs and infrastructure complexity tied to building LLM-based applications and agents. Skills gaps have only exacerbated the problems.

“You need to invest in upgrading your skills; that’s going to be very important,” Batchu said. But organizations also need to be wary of overreliance on AI tools, which can lead to stunted skills. 

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