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69% abandoned a technology project because of skills gaps, while 61% of tech executives say those gaps cost their organization at least $250,000

Westlake, Texas – September 30, 2026 – Pluralsight, the leading technology skills development company, today launched its Tech Skills Report, finding that technology investment is outpacing organizations’ ability to build and verify the workforce capabilities required to use it. The report, which examines the widening gap between technology adoption and workforce readiness, or the ability to demonstrate and apply skills in real-world work, surveyed 1,500 tech executives, technologists, and L&D leaders across the United States, United Kingdom, and Australia. The results found that 96% of organizations have invested in AI tools for at least some of their employees, but most still lack the readiness needed to use that technology effectively.

That readiness gap is affecting both execution and economics: 69% of organizations abandoned a project in the past year because of a lack of tech skills, and 61% of tech executives say skills gaps have cost their organization $250,000 or more in the past year.

“AI adoption has outpaced workforce readiness, and organizations are paying for that gap in abandoned projects, budget overruns, and missed opportunities,” said Erin Gajdalo, Chief Executive Officer at Pluralsight. “Closing the tech skills gap isn't about buying more tools or logging more course completions; it's about building a readiness strategy that proves employees can actually apply what they've learned.”

Other key findings include:

1. Skills gaps are driving widespread project abandonment. Sixty nine percent of organizations abandoned a project in the past year due to a lack of tech skills, compared to 47% in the prior-year survey.

• Cloud, cybersecurity, and AI/ML projects are getting hit hardest as unresolved skills gaps disrupt delivery.
• 84% of organizations say skills gaps cause projects to go over budget at least some of the time.
• 61% of tech executives say skills gaps have cost their organization $250,000 or more in the past year, with an average of $400,000 among those affected.

2. Leaders question whether traditional skill metrics prove capability. Respondents across roles are concerned that tech skill management can be manipulated, while 77% of tech executives have seen employees complete training or earn certifications and still be unable to apply those skills on the job.

• 90% of tech executives, 84% of L&D leaders, and 88% of practitioners are concerned that tech skill measurement can be easily manipulated to falsify completion.
• 77% of tech executives say they've personally seen employees complete training or earn certifications and still be unable to apply those skills on the job.
• Only 29% of organizations currently tie their upskilling ROI to business outcomes, underscoring the gap between learning activity and demonstrated impact.

3. AI adoption is driving demand for cybersecurity and cloud skills. In 2024, AI/ML ranked as organizations' lowest-priority skills gap. Today, it ranks second only to cybersecurity.

• 96% of organizations have invested in AI tools, but only 52% say most or all of their employees are AI literate.
• 55% of organizations say AI has increased their need for cybersecurity skills, and 43% report the same for cloud skills.

4. The junior tech talent pipeline is becoming a strategic risk. The majority (91%) of tech executives are concerned their organization doesn’t have enough junior tech professionals to cover future skills gaps.

• 62% of companies are hiring more junior tech professionals this year than they did last year, but only 11% have significantly increased hiring.

Download the Pluralsight Tech Skills Report for the full findings. Learn how Pluralsight helps organizations assess readiness, close critical skill gaps, and build workforce capability at Pluralsight.com.