According to industry experts, the competition for AI talent is expected to intensify in the upcoming year as multinational corporations, global capability centers (GCCs), and IT firms vie for the top candidates in a limited labor market, driving up wages.

According to research from the employment company Ciel HR, the salaries of AI professionals have been 35-70% more than those of their counterparts in traditional IT professions. As businesses fight fiercely for a small pool of talent, their pay premiums will rise by an additional 15–25% over the course of the following 12–18 months. According to analysts, mid-to-senior roles would be more affected financially.

"Every organization is working hard to develop its AI capabilities, with advanced machine learning and generative AI emerging as key differentiators." MD and CEO Aditya Narayan Mishra of Ciel HR. "We expect the competition to stay very high, possibly even more aggressive than what we have seen in 2024, as companies compete to establish AI leadership."

Even though the AI market is predicted to grow at a rate of 25–35%, analysts pointed out that the demand for AI talent is likely to double from the current pool of 600,000–650,000 to 1.3 million by 2027, according to industry projections.

In the meantime, 80% of the nation's new GCCs are giving AI/ML capabilities top priority, and the use of AI in the Indian IT sector is at 60–65%.

According to Mishra, businesses are now seeking experts who can strategically use AI to drive business change rather than just technical talents.

"The talent gap may widen unless upskilling initiatives match the demand, as global companies aggressively set up GCCs and AI-focused R&D centers," he continued.

According to data from Teamlease Digital and Quess IT Staffing, salaries for AI specialists have already been increasing by 15–30% a year, and they even attract premiums of 25–35% during job transitions.

According to Kapil Joshi, CEO of Quess IT Staffing, the growing complexity of AI projects and the introduction of new AI applications will also call for specialized talents, which are in short supply.

"In an increasingly competitive job market, it is imperative for companies to provide attractive compensation packages and career opportunities to secure top AI talent, as the growing demand for specialized skills will further fuel the competition," he said.

In order to attract top personnel, companies are providing larger compensation packages, signing bonuses, and stock options, according to Krishna Vij, vice president of Teamlease Digital.

Companies are using a variety of strategies to control these expenses, including retraining current staff, recruiting people from Tier II and Tier III locations, working with academic institutions, and utilizing automation and artificial intelligence tools. "This helps meet their growing talent needs while balancing rising expenses," she said.

Particularly in the GCC, competitive pay—often 30% more than traditional IT roles—is increasing their allure. According to the experts, organizations are also boosting up their efforts by providing competitive perks, upskilling and career growth chances, attractive projects, and retention bonuses related to Esop that are especially tailored for AI personnel.

But according to Joshi, the higher wages provided by GCC countries are not likely to last in the long run. Additionally, as the IT sector changes, competitive pay will continue to exist, but it will be offset by increased productivity and profitability to prevent a negative impact on margins.

"It's crucial to remember that these specialized positions and AI powered initiatives usually fetch substantial profit margins and provide lasting benefits," Joshi stated.