Microsoft’s latest Work Trend Index confirms what many of us in tech recruitment are already seeing: AI isn’t just a tool, it’s reshaping how teams are built, how work gets done, and what skills employers need most. From a survey of 31,000 people (including 1,000 in Australia), three clear trends emerged: 1. Productivity Pressure Is Driving Change  47% of Aussie leaders say productivity needs to improve. But 79% of employees and leaders feel they’re already stretched thin. Constant interruptions - meetings, notifications, emails - mean tech talent often lacks the space to do deep, focused work. 2. AI Agents Are Joining the Team “Frontier Firms” are leading the charge. These are businesses using AI agents not just to automate, but to make decisions. They’re thriving: globally, 71% of their workers report strong business performance, versus 37% in more traditional firms. In Australia, 75% of leaders expect to use AI agents to scale workforce capacity in the next 12–18 months. Microsoft describes the next evolution as AI becoming a “digital colleague.” Not just doing tasks, but contributing to strategy, internal comms, and GTM planning, with human oversight. 40% of Aussie leaders are already automating entire workflows. And while 37% are considering headcount reductions as AI adoption grows, 70% are planning to hire AI-focused roles. 3. It’s Not AI or People — It’s Both Removing people to cut costs with AI might be tempting, but it risks weakening innovation and resilience. The businesses that win will be the ones that balance automation with human expertise, and upskill their teams to work alongside AI. That’s especially true in the tech sector, where demand is rising for professionals who can: Work effectively with AI systems Understand how to train, prompt, or oversee AI agents Blend technical know-how with sound judgement 4. The Real Gap? Confidence, Not Tech 71% of leaders say they understand AI agents Just 31% of employees do That’s a wider gap than the global average, and one that needs urgent attention. This isn’t just a tech rollout problem. It’s a leadership and hiring challenge. What It Means for Tech Hiring At Kaliba, we’re already seeing a shift in role briefs: More focus on AI integration , data literacy , and change leadership Demand for professionals who can balance human-centred thinking with AI-enabled efficiency Leaders hiring for AI fluency , not just coding skills Hiring in this new era means building hybrid teams - where humans and AI collaborate - and hiring people who are ready to lead in that environment. Curious how other tech businesses are hiring for this shift? We’d love to hear from you: How is your business adapting its hiring strategy around AI? Are AI agents already part of your team? Need help hiring for your team across APAC? Reach out to our Directors for a chat.