AI salaries surge 23%, legacy tech pay slips
A new report from jobs platform foundit reveals that AI-related salaries in India have surged 23% since 2024, while legacy tech roles like IT services have seen pay declines. AI recorded 12% year-on-year salary growth last year, the highest among tracked categories, followed by cybersecurity and semiconductors at 9% each. Entry-level AI professionals earn Rs 8.87-15.41 LPA, rising to Rs 70.99-89.24 LPA for those with over 15 years' experience. Bengaluru leads as the highest-paying market, with senior AI professionals earning Rs 61.70-91.25 LPA, while Hyderabad emerges as a strong challenger. The report underscores a widening compensation divide as companies pay premiums for skills that fill capability gaps. Key signal: AI job salaries in India have compounded 23% between 2024 and 2026, while IT services pay declined 1% in the last year. For hiring leaders, this matters because for CHROs and TA leaders, this data signals a critical shift: experience alone no longer commands premium pay; skills that address business capability gaps do. The 23% AI salary surge versus declining IT services pay means compensation benchmarks must be recalibrated to attract and retain AI talent. The geographic variations—Bengaluru leading, Hyderabad rising—suggest location strategy matters for cost-effective hiring. Companies still investing heavily in legacy tech roles may face retention risks as pay stagnates. This report provides actionable data for workforce planning, skills-based pay structures, and GCC expansion decisions. Teksands view: The AI pay premium is real and widening. If you're still benchmarking against legacy IT roles, you're already behind. The 23% surge since 2024 isn't hype—it's a market correction. Bengaluru's 10-15% premium over NCR and Mumbai means location strategy is a cost lever. But don't just chase AI titles; the report shows cybersecurity and semiconductors are also paying up. The real signal: skills that fill capability gaps command the raises. Time to rethink your pay bands and skills taxonomy before your best AI talent gets poached.
Key fact
AI job salaries in India have compounded 23% between 2024 and 2026, while IT services pay declined 1% in the last year.
Why it matters
For CHROs and TA leaders, this data signals a critical shift: experience alone no longer commands premium pay; skills that address business capability gaps do. The 23% AI salary surge versus declining IT services pay means compensation benchmarks must be recalibrated to attract and retain AI talent. The geographic variations—Bengaluru leading, Hyderabad rising—suggest location strategy matters for cost-effective hiring. Companies still investing heavily in legacy tech roles may face retention risks as pay stagnates. This report provides actionable data for workforce planning, skills-based pay structures, and GCC expansion decisions.
The Teksands point of view
The AI pay premium is real and widening. If you're still benchmarking against legacy IT roles, you're already behind. The 23% surge since 2024 isn't hype—it's a market correction. Bengaluru's 10-15% premium over NCR and Mumbai means location strategy is a cost lever. But don't just chase AI titles; the report shows cybersecurity and semiconductors are also paying up. The real signal: skills that fill capability gaps command the raises. Time to rethink your pay bands and skills taxonomy before your best AI talent gets poached.
Got a tech role that's refusing to close?
Send us the JD. We'll tell you whether the problem is talent supply, compensation, location, process - or the JD itself.
