The rise of skills based hiring in the AI era: What growing tech companies across Europe need to know.

In 2025, the competition to attract AI, machine learning, data and cloud talent in Europe has reached new heights. As a UK based tech recruitment agency with pan European reach, Tides Digital is seeing a major shift. Employers are no longer relying purely on degrees or rigid job titles. They are embracing skills based hiring, and for good reason.

What is skills based hiring?

Skills based hiring means valuing what candidates can do, not just where they studied or what their last job title was. This approach emphasises hands on experience, technical ability, transferable skills, and the willingness to learn. This is especially important in fast moving fields such as AI, software development, cyber security, and cloud infrastructure.

Why the change is happening now?

Several forces are driving this trend:

• AI and Automation: Companies across Europe are rapidly adopting AI tools to improve efficiency, automate repetitive tasks, and deliver scalable solutions. This growth has created a surge in demand for candidates who can design, deploy, monitor and adjust models.

  
  

• Skills Gaps: Traditional roles are evolving. As businesses shift from legacy systems to cloud, data and AI enabled platforms, they need engineers, ML specialists and data scientists who are up to date with current tools and practices. Entry level roles have also declined in some areas, making it harder for graduates to enter without demonstrable skills or project work.

  
  

• Diversity and Inclusivity: Skills based hiring opens the door to people from non traditional backgrounds, including career changers, bootcamp graduates and self taught engineers. This approach widens the talent pool and fosters innovation.

What this means for tech recruitment

For companies hiring at scale, particularly in AI and tech across Europe, this shift has practical implications:

1. Job Descriptions Need Updating
   Instead of emphasising “degree in Computer Science” or “five years’ experience in a specific company”, job adverts should highlight required skills, tools such as Python, TensorFlow or cloud platforms, and demonstrable project work.

   
   

2. Assessment and Screening Tools
   Intelligent assessment platforms can measure relevant skills directly through coding challenges, machine learning case studies or cloud infrastructure tasks. This approach is more effective than relying solely on CVs. AI can assist, but it must be used ethically and transparently.

   
   

3. Learning and Upskilling
   To close the skills gap, businesses should invest in training, mentoring, bootcamps and internal reskilling so the workforce can grow with the business. Candidates increasingly value employers who invest in their development.

   
   

4. Employer Branding and Candidate Experience
   Highlight inclusive hiring practices, clear pathways for career growth, technical skill development and a culture of continuous learning. Applications and interviews should use clear and accessible language.

Our approach at Tides Digital

At Tides Digital, we have already adapted our recruitment strategies to support skills based hiring across Europe. We work with clients to reshape role specifications, implement fair assessment practices, and connect them with candidates who bring proven skills and potential, not just credentials. Our AI focused recruitment model helps reduce hiring time and improve match quality.

Skills based hiring is not simply a trend. It is fast becoming the norm in AI, tech and recruitment across Europe. For UK companies and beyond, adopting this approach provides access to a wider and more flexible talent pool, increased innovation, and stronger teams ready to tackle the complexities of the AI era.

If you are interested in reshaping your hiring strategy to focus on skills and future proof your workforce, Tides Digital is here to help. Get in touch today to see how we can support your growth.