Heading into 2026: The Software & AI‑Driven Future of UK Tech

A strong foundation and a rising tide

The UK’s software‑development industry remains substantial and growing. According to the latest industry figures the UK software‑development market size is projected to reach c£45.8 billion by the end of 2025. (Source: IBISWorld+1)

At the same time, we are seeing a massive transformation with the UK’s AI ecosystem expanding rapidly, and starting to compliment, not replace, traditional software development. The figures outlined below reflect the tech market as it stood in 2024. With the pace of change in the sector, we expect these numbers to have evolved significantly and as we near the end of 2025 it will be interesting to see the change.

• There were c5,862 AI‑related companies in the UK (up 58 % from 2023).

• That same sector employs c86,139 people nationwide (up 33 % vs 2023).

• AI‑sector revenue has reached c£23.9 billion.  

Source: GOV.UK+1

AI is rewriting the rules of coding

Developers using AI-powered tools like GitHub Copilot are already seeing dramatic productivity gains, completing projects faster while focusing on complex problem-solving and system design. In 2026, AI integration will be less of a novelty and more of a standard part of a developer’s toolkit, making the ability to work effectively with AI essential for career growth.

Low-code and no-code platforms expand accessibility

Industry forecasts suggest that by the end of 2025, 70% of new enterprise applications globally could be built using low-code or no-code platforms, and this trend is set to continue in 2026. These tools allow businesses to create simple applications quickly, while professional developers focus on complex systems, integrations, and robust architecture. Deep technical expertise remains a valuable, in-demand skill.

Forecast based on global data; actual UK figures may vary.

Remote and distributed work is the new normal

Remote work has firmly established itself as standard in software development. As teams remain distributed globally, developers must master remote collaboration, project management, and cross-border communication, skills as vital as coding itself.

Emerging roles and skill sets

The software job market is diversifying, creating roles that barely existed a few years ago:

• AI Ethics Specialists: Ensuring fairness, transparency, and accountability in automated systems.

• Prompt Engineers: Crafting precise instructions to optimise AI model performance.

• Blockchain Developers: Supporting decentralised technologies as adoption grows.

Local hotspots like London’s FinTech sector continue to expand, with a 44% surge in tech jobs recently, while HealthTech and EdTech industries are booming. (Source: Finextra Research+1)

Staying ahead in 2026

As technology evolves, coding alone isn’t enough. Developers need strategies to keep their skills sharp and career opportunities flowing:

• Continuous Learning: Over 82% of developers rely on online resources, blogs, podcasts, courses to stay current. (Source: survey.stackoverflow.co)

• Professional Presence: Active GitHub contributions, LinkedIn profiles, and engagement in tech communities create opportunities.

• Flexible Career Paths: Freelancing is increasingly viable with remote work and specialised platforms, while traditional roles offer structured growth. Success comes from skill development and networking.

Challenges and opportunities

Automation has introduced anxiety, with an increasing number of developers concerned about job displacement. Yet demand for skilled developers remains strong, particularly those embracing AI, complex systems, and human-centred skills like creativity and problem-solving.

For newcomers, the market is welcoming with UK software engineering positions still remaining hard to fill in many areas, and companies are increasingly open to candidates from non-traditional backgrounds.

Looking ahead

As we enter 2026, software development in the UK stands at an exciting intersection of challenge and opportunity. AI and emerging technologies are transforming the field, but developers who embrace change, keep learning, and cultivate versatile skills will thrive.

The future is bright for those ready to adapt, whether through new roles, specialised expertise, or innovative projects, opportunities abound for developers willing to evolve with the industry.

Explore more about software development careers and how the UK tech landscape is evolving as we head into 2026.