AI experts are getting paid. Handsomely.
A recent study by Levels.fyi reveals that AI engineers are commanding salaries 50% higher than their peers in non-AI fields. The average annual salary of a software professional in the US reaches US$200,000. For AI, experts, annual wages can reach up to US$300,000.
This disparity is even more pronounced in certain companies, the study states. For instance, robotaxi company Cruise offers AI engineers up to US$680,500 annually. Non-AI engineers earn US$18,500 less every year in the same company.
Hunger and FOMO for AI have taken over corporate boardrooms. The buzz around the technology remains strong, and business leaders hope that implementing it will enchance efficiency and productivity.
This surge in interest, coupled with the low supply of skilled talent, is what’s pushing salaries sky-high.
The pay gap began widening in mid-2022 and has reached its apparent peak. Companies like OpenAI, the creator of ChatGPT, are investing heavily in AI talent.
According to the report, annual salaries started at US$231,000 in August 2022, rose to US$268,000 by March 2023, dipped slightly to US$244,500 in May 2023 and surged to US$300,600 by March 2024.
In 2024, entry-level AI engineers are earning 8.57% more than their non-AI colleagues. The gap increases to 11.19% at higher levels.
Wall Street banks are also investing millions in AI specialists under the belief that AI can significantly enhance transparency and efficiency in their operations.
Private equity firms are offering compensation packages of up to US$2 million for AI executives to implement the technology at their portfolio companies, as reported by Business Insider. Top AI product managers can earn up to US$100,000 more than standard engineering managers.
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