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AI Salaries Jump 22% in 2 Years; IT Services Flat

AI Salaries Jump 22% in 2 Years; IT Services Flat

India's compensation landscape is diverging sharply, with AI salaries jumping 22% over two years, according to the foundit Insights Tracker. AI recorded 12% year-on-year growth, the highest among tracked categories, followed by cybersecurity and semiconductors at 9% each. In contrast, IT services pay remained flat, and sectors like e-commerce and hardware declined. Bengaluru leads AI pay, with senior professionals earning up to Rs 91.25 LPA, while Tier-II cities lag by 28-31%. The data underscores a growing premium for specialized skills over generic experience. Key signal: AI salaries in India have compounded 22% between 2024 and 2026, while IT services pay remained flat over the same period. For hiring leaders, this matters because for CHROs and TA leaders, this signals a critical shift: compensation strategies must differentiate between high-demand specialist skills and traditional IT roles. The flat IT services pay suggests that generic tech roles are commoditizing, while AI and cybersecurity command premium salaries. This impacts talent retention, hiring budgets, and workforce planning. Companies need to reassess their skill development and compensation frameworks to attract and retain top AI talent, especially in competitive hubs like Bengaluru and Hyderabad. Teksands view: The 22% AI salary jump is a wake-up call for companies still benchmarking against traditional IT pay scales. If you're hiring AI talent, expect to pay a premium—and don't expect that premium to shrink anytime soon. The flat IT services pay is equally telling: generic skills are losing leverage. For hiring leaders, this means investing in upskilling and reskilling is not optional; it's the only way to avoid being priced out of the AI talent market.

Key fact

AI salaries in India have compounded 22% between 2024 and 2026, while IT services pay remained flat over the same period.

Why it matters

For CHROs and TA leaders, this signals a critical shift: compensation strategies must differentiate between high-demand specialist skills and traditional IT roles. The flat IT services pay suggests that generic tech roles are commoditizing, while AI and cybersecurity command premium salaries. This impacts talent retention, hiring budgets, and workforce planning. Companies need to reassess their skill development and compensation frameworks to attract and retain top AI talent, especially in competitive hubs like Bengaluru and Hyderabad.

The Teksands point of view

The 22% AI salary jump is a wake-up call for companies still benchmarking against traditional IT pay scales. If you're hiring AI talent, expect to pay a premium—and don't expect that premium to shrink anytime soon. The flat IT services pay is equally telling: generic skills are losing leverage. For hiring leaders, this means investing in upskilling and reskilling is not optional; it's the only way to avoid being priced out of the AI talent market.

Read the original source at Rediff →

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