AI Skills Command 60% Higher Salaries in Tech Sector
The growing pay gap: AI skills drive 60% higher salaries in tech
The Economic TimesImage: The Economic Times
Professionals with AI skills in India are earning up to 60% more than their counterparts in other tech roles, with this gap expected to widen over the next few years. Companies are increasingly linking salaries to AI competencies, reflecting a significant shift in hiring practices and salary structures.
- 01AI-skilled professionals earn up to 60% more than non-AI peers.
- 02Salary growth for AI roles is projected at 20% annually, compared to 5-8% for non-AI roles.
- 03Entry-level hiring in tech has decreased by 20-25% due to automation.
- 04Companies are shifting to skills-based pay frameworks, with 45-50% adopting AI-influenced salary structures.
- 05AI professionals may see cumulative salary growth of 50-60% over the next two to three years.
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In India, professionals with AI skills are commanding salaries up to 60% higher than their peers in traditional tech roles. Neeti Sharma, CEO of staffing firm TeamLease Digital, notes that AI-complementary positions in sectors like technology and banking are seeing a 30-60% premium. For example, senior AI roles in global capability centers (GCCs) can earn between ₹58-60 lakh (approximately $70,000-$72,000 USD) annually, while legacy IT support roles average around ₹12 lakh (about $14,500 USD). This disparity is reflected in salary hikes, with employees using AI tools receiving raises 1.5-1.7 times higher than the company average. As companies adopt skills-based pay frameworks, 45-50% of organizations are now linking AI skills directly to compensation. The demand for AI skills has surged, with a 131% year-on-year increase in hiring for AI roles at GCCs. However, entry-level roles are diminishing, with companies like Tata Consultancy Services reducing their annual fresh hiring from 45,000-50,000 to 25,000. The trend indicates that while AI professionals may see 50-60% cumulative salary growth over the next few years, those in non-AI roles might only achieve 18-25%.
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The increasing demand for AI skills is reshaping the job market, leading to higher salaries for AI professionals while stagnating wages for those in traditional roles.
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