Global businesses are finding themselves in an escalating AI arms race, vying to secure the expertise and talent essential for staying ahead. Every industry, ranging from manufacturing to real estate and even entertainment, is aggressively pursuing the potential productivity gains promised by generative AI. This fierce AI recruitment for professionals has triggered a staggering surge in salaries, with figures reaching mid-six and nearly seven-digit figures.
Rising bidding wars push AI salaries to unprecedented heights
As the race to harness the power of generative AI intensifies, the battle for top-grade AI talent has ignited an unprecedented surge in compensation packages. The Wall Street Journal unveils striking figures, with Hinge, an online dating platform, offering an eye-catching base salary range of $332,000 to $398,000 per annum for their vice president of artificial intelligence position. Similarly, Upwork, a prominent work marketplace, has posted a position with a salary range between $260,000 and $437,000, while Amazon is willing to shell out $340,300 annually.
According to insights provided by the head of the executive recruiting firm Leathwaite, Paul J. Groce, the remarkable surge in salary hikes is propelled by the fundamental forces of pure market economics. The expert underscores the fact that the supply of skilled AI developers, product managers, and other vital roles is not spontaneously abundant, thus contributing to the unprecedented salary escalation.
Talent shortage hinders AI revolution’s full potential
The demand for AI-related skills has experienced an explosive growth spurt, outpacing the available talent pool. According to Upwork, weekly job listings for Generative AI roles surged by a remarkable 450% compared to the previous year. This rapid expansion is reflected in the staggering diversity of 294 skills now categorized under the “AI Services” banner.
Upwork’s insights into the increasing demand further specify the need for prompt engineers, AI content creators, machine learning and deep learning engineers, data scientists, AI chatbot developers, and experts in model tuning and AI model integration.
But, a significant challenge emerges as the gap between demand and supply widens. The World Economic Forum’s Future of Jobs Report forecasts that AI will generate 97 million new jobs, yet this growth will outstrip the anticipated obsolescence of 85 million jobs. Mohit Josh, Head of Banking, Financial Services and Insurance, Healthcare, and Life Sciences at Infosys, echoes this severe skills shortage. Expressing concern, he highlights that the noticeable hindrance to progress and a significant obstacle for businesses arises from the scarcity of adequately skilled professionals capable of spearheading a company’s AI and digital transformation initiatives.
Upskilling initiatives pave the way forward
A transformative shift is underway, demanding a collective upskilling effort to bridge the gap between the AI revolution and the workforce. With only 1 in 10 workers claiming to possess AI skills, the need for widespread upskilling is undeniable. Gretchen Alarcon, Vice President of HR Service Delivery at California-based software company ServiceNow, advocates for a grassroots approach. Alarcon asserts that employee engagement in designing AI-enhanced processes is key, In her perspective, the individuals poised to gain the most from AI advancements are inherently equipped to discern where the application of AI is most essential.
By putting employees at the forefront of change, companies aim to not only enhance efficiency but also foster a harmonious synergy between human intelligence and artificial advancement. As industries continue to grapple with the soaring demand for AI professionals, this ground-up approach represents a proactive strategy to ensure that the workforce remains well-equipped to steer the trajectory of the AI age.
