AI fluency, soft skills key for workers in 2026

Last year, AI literacy topped the list of skills that professionals should invest in. In 2026, it’s all about workers’ ability to combine AI capabilities with critical soft skills, as new research shows the major structural changes that are informing how organisations assess talent.

According to LinkedIn’s Skills on the Rise list for 2026, AI competency is no longer enough to stand out in the hiring market. With tech skills advancing and competition remaining fierce, other skills are growing in demand.

And it’s not all in the tech sphere.

In fact, some are on the other end completely, with soft skills such as communication and relationship building, training, coaching and people development becoming increasingly valued.

However, this isn’t to say AI is going anywhere – the focus has simply shifted from understanding AI to working alongside it. Prompt engineering (i.e. combining contemporary tech and human thinking) stood out as the defining skill in demand.

Tech and data make up the largest share of fastest-growing skills in Australia. AI, machine learning, and data intelligence were identified as top of the list, followed by technical development and engineering.

Third and fourth places comprised people skills, coaching, and visual storytelling. With AI use rampant, the demand for these skills points to a shifting hiring landscape that values collaboration.

Governance, ethics and compliance rounded out the top five. This is not surprising considering cross-industry trends in demand for strong AI guidelines and policy.

LinkedIn data also revealed a 32 per cent increase in companies with a head of AI, and a 300 per cent increase in hiring for AI-equipped talent. AI remains the defining and potentially deciding factor in hiring decisions, with more than eight in 10 C-suite executives preferring an employee who’s comfortable using AI tools over someone with more experience but less confidence.

Businesses are also facing this shift, now having to adapt to roles that are more fluid and skills-based. The LinkedIn research revealed that AI literacy skills are up 32 per cent year on year in Australian firms and 60 per cent in enterprises.

Adoption is not only more rampant but is also being implemented faster.

According to LinkedIn career expert Brendan Wong, “the clearest signal this year is that AI is no longer optional, but it’s human skills like collaboration, storytelling and mentoring that are helping professionals stand out”.

These two major shifts come at a time when nearly half of recruiters around the world are using this skills data to fill roles. And it is apparent that increasing knowledge and capability with AI across the general professional population has only raised the bar, with more developed and rounded skills now in demand.

“Organisations are hiring and increasingly structuring teams around skills, not job titles,” Wong said.

“As technology evolves, organisations are prioritising people who can bring others with them.”