New research reveals optimism for AI adoption and global hiring trends shaping the future of software development.

Terminal, the smarter global talent platform for hiring developers, released its sixth annual State of Remote Engineering Report, offering a comprehensive look at how software engineers and employers are adapting to rapid technological and workplace changes. Drawing on survey data from more than 1,400 engineers worldwide, the 2025 report explores how artificial intelligence (AI), global employment, and evolving work models are reshaping engineering careers.

“Tech has always been driven by change. But in 2025, that change feels faster, deeper, and more disruptive. Artificial intelligence is transforming how software gets built. Remote and hybrid models are changing team building. And global talent is the new standard,” said Dylan Serota, CEO of Terminal. “Yet in the middle of all this movement, something surprising emerged from this year’s report: engineers are optimistic. They are not just adapting to change — they’re welcoming it.”

Key Insights from the Report

• Engineers Remain Optimistic Despite Uncertainty: 76% of engineers would encourage students to pursue computer science or engineering, and 73% feel confident about their own career prospects — even amid layoffs, market turbulence, and AI disruption.
• AI Usage Surges Across Development Teams: AI adoption jumped from 45% in 2024 to 71% in 2025, with most engineers (80%) encouraged by their employers to use AI tools. Top use cases include coding assistants (64%), code review (50%), and documentation (50%). Among AI tools, developers report using ChatGPT most frequently (35.4%), followed by GitHub CoPilot (15.7%), and Claude (8.2%).
• Mixed Views on AI’s Impact on Hiring: While 43% believe AI will create more engineering jobs, 41% fear it will reduce opportunities. Most (59%) have not yet seen hiring slowdowns due to AI, but 76% expect it to automate routine tasks — freeing engineers to focus on higher-level problem-solving. Notably, engineers in LatAm (49%) and U.S. (45%) are more optimistic about AI’s impact on increasing hiring, while those in Europe (56%) and Canada (54%) expect AI to decrease hiring.
• Global Employment Benefits Both Sides: U.S. companies are attracting engineers abroad with higher salaries (84%), growth opportunities (70%), and flexibility (65%). At the same time, businesses gain access to top-tier talent at lower overall salary expectations.
• Flexibility Is a Top Priority: While full-time employment remains most common (48%), contract and freelance work is rising among developers. Engineers cite flexibility in hours (60%) and project choice (51%) as major benefits, signaling companies must expand beyond traditional employment models to stay competitive.

Why It Matters

The 2025 findings underscore both the resilience and the evolving expectations of the global engineering workforce. While artificial intelligence is reshaping workflows and sparking uncertainty about hiring, engineers remain confident in their futures and eager to explore new technologies. Companies that embrace this optimism by offering flexibility, competitive pay, and global opportunities will be best positioned to attract and retain world-class talent.

Serota emphasized: “If we want to build competitive teams and enduring products, we have to think differently about how we hire, lead, and support our engineers. We need to give them flexibility, invest in their growth, and provide tools and autonomy. We also need to evolve with the technology they’re already embracing. We have great potential to thrive and innovate — I’m excited for what’s to come, even in the face of the unknown.”

Accessing the Report

The full State of Remote Engineering 2025 is available now and can be downloaded at: www.terminal.io/state-of-remote-engineering.

About Terminal

Terminal is the leading global talent platform that helps technology companies build and manage remote engineering teams. By simplifying hiring, payroll, benefits, and compliance across borders, Terminal enables businesses to unlock access to world-class talent anywhere in the world. Founded with the vision that great teams can be built without borders, Terminal partners with leading companies like Hims & Hers, Calendly, NextDoor, Transfix, and Grindr to help them scale faster and smarter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250902176555/en/

“Yet in the middle of all this movement, something surprising emerged from this year’s report: engineers are optimistic. They are not just adapting to change — they’re welcoming it.”