Artificial intelligence (AI) is rapidly becoming a ubiquitous aspect of businesses everywhere, with new roles being created every day. Even though the last few years have been marred by rising apprehension of job displacement, it now seems there is a breather for professionals.According to the latest High-Skilled Job Report for Q2 2026 by Toptal, a leading on-demand talent firm, the demand for experienced technology and professional services talent increased in the second quarter of 2026. This increase is despite the broader global job market that remained under pressure, with tech companies continuing layoff sprees.Toptal’s Market Strength Score for experienced technology and professional services roles across all work models increased 7.1 per cent quarter over quarter (QoQ) and 12.6 per cent year over year (YoY) in Q2 2026. Further, it states that demand for experienced remote and hybrid tech professionals rose 5.4 per cent QoQ and 8.9 per cent YoY.Also Read | Can an AI model’s ‘reasoning’ be extracted? New research fuels US-China distillation rowThe trends, as per the report, contrast with the wider job market. Job postings across professions and experience levels in the US and other large economies, according to the report, dipped by an average of 3.6 per cent QoQ and 9 per cent YoY. Totpal said most of the 10 areas of expertise it tracks, however, recorded increases in demand during the quarter.Areas with strongest demandsThe report stated that finance consultants recorded the strongest growth among the areas tracked. Demand for experienced remote and hybrid finance consultants rose 27 per cent from the previous quarter and 42 per cent from a year earlier, giving the segment a ‘Strong’ market strength score. The organisation attributed part of the rise to the growing investment in agentic AI in finance, as more companies are now seeking professionals who are capable of assessing AI deployment options, risks, and returns.Meanwhile, other areas too recorded similar gains. According to the report, demand for remote and hybrid data science experts rose 12 per cent QoQ and 14 per cent YoY, while product managers saw increases of 13 per cent and 27 per cent, respectively. Project managers recorded 19 per cent QoQ and 14 per cent YoY growth. Information security experts were up 10 per cent QoQ and 3 per cent YoY, while developers increased 2 per cent QoQ and 3 per cent YoY.AI is changing talent demandAccording to the report, AI is also influencing the kind of talent companies are looking for. Organisations are moving away from volume hiring and towards smaller teams of senior professionals who come with deep domain expertise along with AI fluency, business understanding, and the ability to work across functions and departments. On the other hand, demand for junior roles and jobs based mainly on routine tasks has declined.Story continues below this adBased on the report, for developers, simply being familiar with AI tools is increasingly not sufficient. Employers are placing greater emphasis on candidates with hands-on experience building and implementing production-ready AI systems, along with relevant certifications and domain expertise. The report expects demand in the third quarter to increasingly focus on agentic workflows, AI security, governance and identity management.Also Read | HCLTech says stolen data may be years-old after hacker’s data breach claimsData science is undergoing a similar shift. As AI takes over more routine analytical work, employers seem to be placing greater emphasis on professionals who can scrutinise AI-generated outputs and translate them into recommendations that can withstand executive and regulatory scrutiny.Tech layoffs persistEven with changing demand and job trends, tech layoffs continue to remain elevated. While layoffs at tech companies dipped by 47 per cent QoQ in Q2, it was still 5 per cent higher than in Q2 2025. Toptal said the sharp quarterly decline partly reflected a high number of layoffs in Q1, when Oracle axed about 20,000 roles near the end of the quarter.Further, the report said these conflicting trends of layoffs alongside stronger demand for specialised professionals reflect a narrower hiring market rather than a broad collapse in technology employment. Organisations are reducing headcount in some areas while competing for experienced workers with specific technical and business capabilities.Story continues below this adOverall, the report shows that the job market is recovering, but unevenly. Though overall job postings are falling, the demand for experienced technology and professional services workers is seeing an uptick. AI has emerged as the major factor behind this shift, as companies are increasingly looking for senior professionals who combine domain expertise with AI fluency and business judgement. At the same time, demand is weakening for junior and routine roles. Tech layoffs also remain elevated despite falling from the previous quarter. Overall, the report suggests that AI is reshaping hiring rather than simply eliminating jobs, with companies becoming more selective about the skills and experience they need.