AI Skills Earn Hiring Premiums, But Employee Pay Lags: Report

Among professionals with direct day-to-day AI exposure, 36 per cent saw zero change in their compensation package, while 18 per cent reported a net decrease in their overall earnings. Only a small minority achieved the high-bracket increases advertised in the external job market.

The report indicated that while the external hiring market aggressively prices AI expertise to attract new talent, internal corporate compensation cycles are lagging significantly, leaving existing mid-career and senior professionals behind.

Sashi Kumar, Managing Director, Indeed India, said that acquisition of AI talent is only one half of the equation and retaining and motivating the workforce that upskills internally is equally important. 

"This disconnect creates a dual vulnerability for organisations, sparking job insecurity while accelerating the attrition of senior institutional talent. Winning the AI transition requires organisations to align their internal appraisal models with the real-world value their upskilled employees are generating,” Kumar added.

Only 11 per cent of respondents said AI has completely transformed their role, while a combined 65 per cent reported moderate or incremental changes. Around 24 per cent said AI has not yet changed the way they work.

AI is also influencing career decisions as over 51 per cent said AI has influenced the types of jobs they apply for or aspire to, suggesting professionals are proactively adapting their career choices as AI adoption grows.

Nearly 40 per cent of employers now explicitly prioritise demonstrable AI skills and certifications over formal university degrees. Only 9 per cent still prioritise an academic degree alone when evaluating candidates for AI roles.