AI and hybrid work have altered how companies hire, but not nearly enough who they hire. Even as tools grow more advanced, the tech workforce continues to lack gender balance. For the C-suite, this is no longer about good intentions or representation alone, it is about competitiveness in an economy shaped by technology.
The State of the Workforce
Though it has been a decade of loudly proclaiming the importance of Diversity, Equity, and Inclusion (DEI) and investing heavily in it, the industry has made very little progress. According to global data available until late 2025, women continue to be a mere 25%-35% component of the overall technology talent ecosystem. There has hardly been any change in this aspect over recent times.
The gap is more alarming when it is analyzed in terms of corporate structures. Fewer than 20% of women hold C-suite positions in tech companies around the globe.
This lack of representation at the decision-making table creates a feedback loop; without diverse voices in leadership, organisational cultures often fail to evolve in ways that would attract and retain a broader talent pool. Furthermore, reports of “diversity fatigue” have emerged, with nearly 20% of organisations scaling back initiatives—a retrenchment that threatens to undo the fragile gains of the last decade.
The AI paradox
Nowhere is the diversity gap more consequential than in artificial intelligence. As companies embed generative AI into core business functions, women currently hold only about 26% of AI-related roles globally, reflecting both who is being hired into these teams and how AI talent pipelines are being designed.
This is not simply a matter of representation, it’s a product quality issue. This can happen when similar groups of people create a system of assumptions and have it encoded into their AI, creating not only biases but substandard user experiences. This AI has ethical implications when it’s embedded into a market of increasing trust and personalization. There has been rapid improvement regarding friction, debate, and difference.
The “Broken Rung” and the Retention Crisis
Two structural failures continue to undermine progress: the “broken rung” and poor retention.
For every 100 men promoted from entry-level roles to manager, only 81 women make the same transition. This early-career bottleneck weakens the leadership pipeline long before senior roles come into view. Even strong hiring numbers cannot compensate for promotion systems that stall women’s advancement.
Furthermore, retention is being eroded by the “flexibility stigma”. While hybrid work was initially hailed as a great equaliser, data also suggests that women utilising flexible work policies are often penalised. Women utilising flexible work policies are often penalised, resulting in their reduced likelihood of receiving high-visibility assignments or promotions compared to their male counterparts who work in-office. Consequently, nearly 50% of women in the tech industry leave by the age of 35, attributing their departure to a lack of advancement opportunities and the persistence of exclusive cultures, even within virtual environments.
The Economic Imperative
The argument for closing this gap is compelling from an economic perspective. Research consistently shows that diverse executive teams are linked to enhanced financial performance. Companies with a minimum of 30% female representation in leadership positions are markedly more likely to outperform their competitors in terms of profitability. Furthermore, addressing the gender gap in the digital sector could potentially contribute an estimated $1.5 trillion to global GDP.
The industry cannot claim to be optimising for efficiency while under utilising half of the available talent pool. Women often bring unique competencies in collaborative leadership, user-centric design, and holistic problem-solving, skills that are increasingly valuable as technology moves from backend infrastructure to intuitive, human-aligned solutions.
A Strategic Path Forward
To alter this trajectory in 2026, the industry must move beyond performative metrics to structural accountability.
- Audit the “Broken Rung”: Organisations must rigorously analyse promotion rates at the first step of management. If hiring rates are balanced but promotion rates are skewed, the internal development system is failing.
- Normalise Flexibility: Leadership must combat flexibility stigma by measuring output rather than physical presence. When senior leaders model flexible work without penalty, it signals that “presence” is not a substitute for commitment.
- Sponsorship Over Mentorship: Mentorship provides advice; sponsorship provides power. The industry must shift its focus towards sponsorship programmes that encourage executives to actively advocate for high-potential women. This involves placing these women’s names in consideration for stretch assignments and critical promotions.
With the emerging dynamics of technology impacting almost every sector, the process of hiring staff must change at the same pace. Diversity and even greater involvement of women in the technical staff of organizations can no longer be looked at from the perspective of doing good, it must be looked at from the perspective of business.
Shared by : Ruchika Godha,
COO Advaiya Solutions
