New AI hires earn more while existing employees see little pay growth: Indeed

Companies are paying a premium to attract new AI talent, but many employees who have already developed AI skills are seeing little or no improvement in their compensation, according to Indeed's inaugural AI at Work Tracker 2026.

The report found a growing disconnect between employer hiring strategies and internal reward systems. While most employers said they offer higher salaries for AI-skilled talent, more than half of employees working in AI-exposed roles reported stagnant or lower earnings over the past year.

Employers offer AI salary premiums, employees report limited gains

The survey, conducted among 1,267 employers and 2,541 employees across India, found employers are increasingly willing to pay a premium to recruit AI talent.

Key findings include:

• 66% of employers said they offer salary premiums for AI-skilled professionals.
• Many employers reported paying 11% to 30% higher salaries for AI roles compared with non-AI positions.
• 26% of employers said AI-skilled positions attract salary premiums of 31% to 50%.

However, employees reported a different experience.

• 54% of AI-exposed employees said their pay had remained stagnant or declined during the past year.
• 36% reported no change in compensation.
• 18% said their earnings had fallen.
• Only a small proportion reported salary increases matching the higher premiums available in the external hiring market.

The findings suggest organisations are rewarding external recruitment more aggressively than employees who acquire AI capabilities while already in the organisation.

Internal pay models may create retention challenges

According to the report, the widening gap between external hiring salaries and internal compensation could become a retention challenge as AI adoption accelerates.

Sashi Kumar, Managing Director of Indeed India, said organisations need to better recognise the contribution of employees who develop AI capabilities internally.

"Winning the AI transition requires organisations to align their internal appraisal models with the real-world value their upskilled employees are generating," he said.

The report indicates internal compensation cycles are not keeping pace with the market value of AI skills, particularly for experienced professionals.

AI changes work gradually, not overnight

Despite growing investment in artificial intelligence, the report found AI's impact on day-to-day work remains gradual for most employees.

Survey findings showed:

• 11% said AI had completely transformed their role.
• 65% reported moderate or incremental changes.
• Nearly one in four employees said AI had not yet changed the way they work.

The findings suggest organisations are integrating AI into existing workflows rather than fundamentally redesigning most jobs.

Skills become more valuable than degrees

Hiring priorities are also shifting as employers place greater emphasis on practical AI expertise.

The report found:

• Nearly 40% of employers now prioritise AI skills and certifications over university degrees when recruiting for AI roles.
• Only 9% continue to rely primarily on academic qualifications.
• 37% of employees believe employers now value skills and degrees equally.
• 31% believe AI skills carry greater weight than formal education.

The findings point to a broader move towards skills-based hiring as organisations look for candidates who can demonstrate practical AI capabilities.

AI reshapes employee identity and hiring demand

The report also highlights changing attitudes towards careers and professional identity.

More than half of respondents said they now define themselves by their skills and ability to learn, compared with 17% who primarily identify with their job title.

At the same time, concerns remain widespread.

• 42% of respondents expressed concern about AI's impact on their careers, with anxiety highest among unemployed job seekers.
• 63% of employers reported increasing recruitment for AI-related roles during 2025 compared with the previous year.

Rather than signalling a rapid hiring surge, Indeed said demand is expanding steadily across functions including AI engineering, strategy, operations, governance and ethics, reflecting how organisations are embedding AI capabilities across existing business functions.

As AI adoption gathers pace, the report suggests companies will need to balance competitive hiring with stronger internal reward systems if they want to retain employees who continue to build AI capabilities from within.