₹36 lakh vs ₹26 lakh: AI skills now command a 38% salary premium over IT | Personal Finance

Artificial intelligence (AI) is creating a two-speed technology job market in India, with professionals possessing AI skills earning significantly more than their counterparts in traditional IT roles, according to a study by 1 Finance Research.

An analysis of 950 technology job postings across Mumbai, Pune, Delhi-NCR, Bengaluru and Hyderabad found that AI-related jobs pay higher salaries than conventional IT roles at every stage of a professional’s career. The wage premium starts at 20% for entry-level professionals and widens to 38% for those with more than 10 years of experience, suggesting that employers are increasingly rewarding specialised AI expertise rather than years of experience alone.

“The public conversation on AI is stuck on job losses, which is the wrong lens. Our data shows the market is not shrinking; it is re-pricing,” said Animesh Hardia, Partner at 1 Finance.

AI pays more at every experience level

The study found a clear salary divergence between AI-related and traditional IT roles.

Professionals with 0-3 years of experience in AI earn an average annual salary of ₹6 lakh, compared with ₹5 lakh in traditional IT roles.

The gap widens further as experience increases:

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  3-5 years: AI roles pay ₹12 lakh, compared with ₹9 lakh in traditional IT, a premium of 33%.
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  5-10 years: AI professionals earn ₹22 lakh, versus ₹17 lakh in conventional IT roles, translating into a 29% premium.
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  10 years and above: AI salaries average ₹36 lakh, while traditional IT professionals earn ₹26 lakh, creating the largest premium of 38%.

The report also found that experienced AI professionals can command salaries of up to ₹70 lakh annually, whereas many traditional IT roles tend to plateau between ₹23 lakh and ₹58 lakh.

Experience alone no longer guarantees higher pay

One of the report’s key findings is that seniority alone is no longer sufficient to command premium salaries.

For years, Indian IT professionals could expect salaries to rise steadily with experience. However, the latest data suggests employers are increasingly paying for scarce AI capabilities rather than tenure.

“The market has stopped paying for years served and started paying for scarce capability. A generalist with 15 years of experience and an AI specialist with five years can now sit at very different pay scales,” Hardia said.

According to the report, the professionals most exposed to disruption are not necessarily fresh graduates but mid-career employees whose skills have not kept pace with AI adoption. 

GCCs widen the salary gap

The study also highlights the growing role of Global Capability Centres (GCCs) in reshaping India’s technology job market.

According to the analysis, GCCs pay 12-20% more than traditional IT services companies for comparable roles. For AI and data specialists, the premium rises to 30-50%, reflecting strong competition for niche talent.

Nearly 64% of newly created GCC roles now require expertise in AI, data analytics or automation, with hiring concentrated among professionals having four to ten years of experience.

Demand is growing faster than supply

Demand for AI professionals is growing by around 25% annually, while the supply of talent is increasing at only 15%, creating persistent shortages.

India leads in AI learning, but lags globally

Despite the rapid growth in AI hiring, India still trails many advanced economies on broader AI readiness.

The report notes that India ranks first globally in enrolments for generative AI courses, reflecting strong interest in acquiring AI skills.

However, the country ranks only 46th globally on AI maturity and spends just 0.6% of GDP on research and development, compared with 3.5% in the United States, highlighting the gap between talent development and research-led innovation.

Reskilling could determine India’s tech workforce

The report argues that India’s future technology workforce will depend heavily on how quickly professionals adapt.

According to NITI Aayog projections cited in the report, India’s technology services workforce could reach 10 million by 2031 if large-scale reskilling succeeds. However, if reskilling efforts remain inadequate, total employment may reach only around 6 million, significantly limiting the sector’s long-term growth.

AI is changing careers—not eliminating them

Rather than replacing technology jobs altogether, AI is fundamentally changing how employers value skills.

The report concludes that continuous learning has become essential for sustaining earning power, particularly for mid-career professionals.

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  20% at the entry level
• 
  33% for professionals with 3–5 years’ experience
• 
  29% for those with 5–10 years’ experience
• 
  38% for professionals with more than 10 years’ experience
• 
  Experienced AI professionals can earn up to ₹70 lakh annually, while many traditional IT roles plateau between ₹23 lakh and ₹58 lakh.

• 
  Global Capability Centres (GCCs) pay 12–20% more than traditional IT firms, with the premium rising to 30–50% for AI and data specialists.
• 
  Nearly two-thirds (64%) of new GCC jobs now require AI, data or automation skills, with hiring concentrated among professionals with 4–10 years of experience.
• 
  India leads the world in enrolments for generative AI courses but ranks only 46th globally in AI maturity and spends 0.6% of GDP on research and development, compared with 3.5% in the US.
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  NITI Aayog estimates India’s tech-services workforce could reach 10 million by 2031 if reskilling succeeds, but only 6 million if reskilling efforts fall short.