Japan sees shift in Tech hiring:
Software development roles decline, but surge for Project Managers and Cloud Specialists as AI reshapes demand

Integrating AI into digital transformation efforts presents significant challenges for organisations, requiring the right vision, stakeholders, data, infrastructure, and skills. The report provides insights into the global tech talent landscape and offers actionable advice for effective technology implementation and adoption. This includes an analysis of global job volume from early 2022 to the end of 2024, offering insights into the demand for key skills and the impact of Gen AI, enabling organisations to adjust their digital transformation strategies accordingly.  

Roles with higher AI Impact scores are at risk of having tasks removed as AI can perform repetitive and data heavy tasks more efficiently and accurately than humans. However, rather than eliminating entire positions, AI is automating parts of jobs and reallocating tasks. This shift has the potential to enhance the overall quality of roles by amplifying the need for more strategic positions. For example, there will be less demand for entry level coders with AI able to generate similar outcomes, leading to more senior roles in quality assurance and implementation.  

Lower demand for Software Developers 

The report reveals that while Software Development remains the most in-demand skills globally, its demand saw a rapid decline in 2024 due to automation and talent redeployment. Organisations are encouraging the use of AI to enhance productivity by automating repetitive tasks, leading to a reduced demand for roles like software developers. This trend is expected to continue into 2025. 

“Japan experienced a significant decline in software development roles, with a 59 per cent reduction from 2022 to 2024,” said Grant Torrens, Managing Director at Hays Japan. “This trend is also evident in other parts of Asia, with China and Hong Kong SAR seeing decreases of 71 per cent and 90 per cent respectively during the same period.” 

Roles in Singapore saw a 66 per cent decline from 2022 to 2024. In contrast, Malaysia was the least impacted, with only a 32 per cent reduction in roles, and continues to be a prominent global hub for software development expertise. 

Surging demand for cloud specialists 

While AI has impacted cloud roles similarly, the core elements of this specialism remain the same. In many ways, AI innovation appears to be accelerating the need for cloud computing as organisations look towards AI-optimised cloud infrastructure to optimise resource management, enhance cloud security and automate complex business processes. In Japan, this has resulted in demand for specialists tripling compared to 2022. 

“Demand for cloud specialists in Japan have increased 244 per cent from 2022 to 2024, driven by ongoing digital transformation and the need for robust cloud infrastructure to support AI and automation technologies,” says Grant. 

Project Managers remain in demand  

In 2024, Project Managers were the most in-demand role as organisations prepared for AI integration and upgraded outdated technology infrastructures. ERP/CRM roles saw steady growth, largely avoiding the peaks and troughs faced by other skills areas. The strategic allocation of labour, with project management in established regions and execution outsourced to other markets, underscores the importance of developing long-term partnerships to sustain talent pipelines. 

“Projects and Change roles in Japan saw 30 per cent growth in demand between 2022 to 2024, the highest percentage observed in Asia. Hong Kong saw minor growth at 8 per cent in the same period, while China, Malaysia and Singapore all faced declining demand,” says Grant. 

China saw demand for such roles fall 4 per cent compared to 2022, followed by Malaysia (15 per cent) and Singapore (49 per cent). 

Demand for roles in Projects and Change, as well as Data and Advanced Analytics, is expected to continue throughout 2025 as organisations work towards their AI ambitions. With budgets under pressure, organisations are increasingly relying on data for strategic decision-making, driving demand for professionals who can interpret and refine machine-generated outputs. Technological advancements, including Gen AI, will reshape job volumes, but this shift will be gradual and complex, rather than an immediate replacement of jobs. 

Few professionals have received AI training 

Insights from the 2025 Hays Asia Salary Guide reveal that while 57 per cent of working professionals in Japan use AI tools at work, only 25 per cent have received training to use such tools. Furthermore, 43 per cent of professionals do not use AI tools due to a lack of understanding, support or training. 

“80 per cent of professionals in Japan are eager to learn how to use AI tools at work. With 71 per cent of organisations facing critical skill gaps this year, it's crucial for leaders to implement programs that upskill employees in these tools,” said Grant. 

James Milligan, Hays, Global Head of Technology, Engineering and Contracting 

"2025 marks the transition from isolated AI-enabled initiatives to comprehensive technology solutions that will reshape how work is done. This transformation will extend beyond 2025, with full implementation taking five to ten years for most businesses. Understanding the impact on hiring strategies and identifying key skills will be critical, with the quality, integration, and ROI of technology a direct result of the foundations laid in the next 12 months." 

"Each new wave of technology, including Gen AI, brings predictions of job disruptions and new skill demands. While Gen AI is expected to continue to enhance productivity and add financial value, its benefits will vary across roles and sectors. Organisations must thoughtfully integrate human and machine intelligence to maximise effectiveness. Simply replacing roles with AI for immediate cost savings can harm long-term performance. Instead, organisations should focus on reskilling employees in 'at-risk' roles and consider internal redeployment to meet evolving needs. 

"Organisations must adapt to the rapid creation and reduction of jobs driven by evolving technologies and AI automation. Defining specific skills needed at each stage of digital transformation is crucial, and a blend of high-skill contract workers and permanent employees can be more effective. Emphasising soft skills like communication, negotiation, self-awareness, and emotional intelligence is vital, especially in rapidly changing sectors.