In the year to March 2025, the number of job adverts mentioning Generative AI (GenAI) increased significantly in several European economies. Ireland experienced the largest growth, with a 204% increase, with the UK, Germany, and France registering 120%, 109%, and 91% increases respectively. And this growth indicates a fundamental shift in the European job market.
However, as the demand for highly-skilled AI professionals rises, Europe is facing an AI skills gap. Many companies are introducing new AI-driven roles to keep up with innovation, yet they are also struggling to find suitably qualified candidates to fill those roles.
Anyone looking to succeed in this field, must make attempts to stay up-to-date with the latest trends, emerging skills, and the training opportunities available.
This article, the first of two, looks at the recent growth of the AI job market and the challenges facing professionals and employers.
AI job market growth
AI hiring is no longer confined to Silicon Valley or tech unicorns; it’s accelerating across core sectors throughout Europe. PwC’s “2025 Global AI Jobs Barometer” report reveals that 100% of industries are increasing AI usage, including industries less obviously exposed to AI such as mining and agriculture. While a Germany-focused analysis of the same report reveals that the German Information & Communication sector captured over 7% of AI job postings in 2024, making it the leading industry for AI demand in that country.
AI-driven diagnostics, risk modelling, demand forecasting, and supply-chain optimisation are also pushing the health, finance, and logistics sectors to recruit AI talent in increasing numbers. Insights drawn from Aura’s comprehensive hiring dataunderscores this expansion, highlighting that “AI-related jobs have moved beyond their niche to become a driving force in workforce transformation.”
Geography and remote work are also important dimensions that are reshaping access. As more European AI jobs now allow for full remote work, and cities such as London, Berlin, Paris, Amsterdam, Stockholm, and Zurich remain hotspots for AI professionals, combining research hubs, startup ecosystems, and corporate investment, this remote-work increase helps widen the talent pool and diffuse opportunity across the continent.
Challenges in the AI job market
There’s no doubt that AI is unlocking huge possibilities, but it’s also exposing several real hurdles facing professionals and employers alike.
Job displacement
The first AI skills survey by the European Centre for the Development of Vocational Training (CEDEFOP) reveals that about 15% of employees are afraid of losing their job because of AI technology in the next 5 years. This threat is felt larger among workers in southern and central European countries than it is in western Europe. The fear of replacement by automation is highest among workers in routine, precarious, middle-skill jobs and in contexts where mostly computerised machinery is deployed.
Rapid technological change is widening the skills gap
European companies report that a lack of necessary skills is a major barrier to adopting new AI tools and applications. The 2023 OECD Employment Outlook on AI and the labour market, highlighted that in finance and manufacturing, nearly 40% of employers say employees don’t yet have the competencies needed. Recruiting for AI roles is particularly tough with 28% of recruiters across Germany, Spain, and the UK saying candidates with strong machine learning, data engineering or analytics skills are hard to find. Add to that the lower confidence many workers have in their own skill sets. The CEDEFOP AI Skills survey highlights that sin in ten employees expect to upskill their knowledge in the coming years, but 44% of employees express concerns that they will not receive adequate training to work with AI technology.
Geographic concentration limits access and mobility
Most jobs are clustered around the major tech hubs. This means that for those living outside of these regions, there are less available opportunities unless they are prepared to travel or relocate. The potential for remote working does help, but access to, and how widely AI technologies are used at work, vary across the continent.
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