The Rise of AI: Specialization, Salaries, and Future Trends
By The Burtch Works Team
Artificial Intelligence (AI) continues to revolutionize industries across the globe, shaping new roles and reshaping traditional business models. The Burtch Works 2024 Data Science & AI Professionals Salary Report offers unique insights into the hiring trends, salary structures, and industry demands for AI professionals, revealing how the sector is evolving as demand for AI expertise increases.
Increased Investment in AI
As AI continues to mature, so does the investment from both venture capital and corporate sectors. Venture capital and private equity firms are pouring significant resources into AI startups, fostering rapid innovation. Large corporations are also dedicating substantial portions of their budgets to integrate AI into their business models to remain competitive in a rapidly evolving technological landscape.
This influx of investment has driven a sharp demand for AI talent, with many companies prioritizing AI roles in their hiring strategies. However, this demand often outstrips the supply of qualified candidates, leading to intense competition among firms to secure top talent.
AI as a Service: Growing Adoption of AIaaS and DaaS
Another trend identified in the 2024 report is the rising popularity of Data as a Service (DaaS) and AI as a Service (AIaaS) models. These cloud-based solutions allow companies to access advanced AI capabilities without needing to develop in-house infrastructure. Businesses can now integrate AI functionalities—such as machine learning, natural language processing, and computer vision—via APIs, making AI more accessible and scalable.
Cloud integration has become an essential aspect of AI deployment. Major cloud providers are offering a wide range of AI and machine learning services that enable businesses to adopt these technologies quickly, further fueling the demand for AI professionals who are skilled in cloud-based AI deployment.
Hiring Trends: The Focus on Individual Contributors
Interestingly, the report notes that companies remain cautious when it comes to hiring for managerial AI positions. While salaries for individual contributors (ICs) have seen an increase, managerial salaries, especially for mid- to senior-level roles, have decreased. This trend suggests that organizations are focusing on smaller, high-impact teams of AI professionals rather than building large managerial structures.
AI professionals, especially those at the IC-1 and IC-3 levels (defined at Figure 3 below), have seen statistically significant increases in base salaries. Companies are particularly interested in hiring professionals who can make immediate technical contributions, focusing on project-based hiring to assess the impact of AI before scaling up teams.
AI Specialization is Accelerating
One of the defining trends observed in 2024 is the increased specialization within AI. Professionals are no longer generalists; they are developing niche skills that allow them to focus on specific areas, like Natural Language Processing (NLP), Computer Vision, and Large Language Models (LLMs). Emerging roles, such as AI Engineers, Prompt Engineers, and NLP Specialists are increasingly sought after as companies look to capitalize on the potential of generative AI.
These roles have become essential as industries look to develop innovative products and services, relying heavily on AI's ability to enhance core business processes. With the development of technologies like Generative Adversarial Networks (GANs), Transfer Learning, and reinforcement learning, AI professionals are expected to possess highly specialized skills that differentiate them from traditional data scientists.
Salaries Reflect High Demand for AI Talent
The shortage of AI talent is evident in the salary trends reported. AI professionals, who work with unstructured data like text, images, and audio, command higher salaries than data scientists. This is due to the scarcity of professionals with the specialized skills needed to excel in AI.
For example, AI professionals who focus on machine learning, deep learning, and computer vision tend to earn more, especially at the individual contributor levels. The 2024 report reveals that AI salaries have increased at the IC-1 and IC-3 levels, whereas managerial salaries have remained flat or even decreased (Figure 1 and Figure 2). This shift underscores the preference for hiring skilled technical professionals over building large management teams in AI.
Figure 1 - AI Professionals – Mean Base Salary Changes Over time
Figure 2 - AI Professionals – Mean Base Salary 2023 vs 2024
Future Outlook: AI Continues to Evolve
The AI industry is on the cusp of further growth as more organizations recognize the transformative potential of the technology. While the market for AI talent remains competitive, companies are adopting a “wait-and-see” approach, piloting small projects before committing to larger investments in AI teams. This approach allows organizations to evaluate AI’s potential and refine their strategies before scaling up hiring.
As AI continues to integrate into core business operations, professionals with specialized AI skills will remain in high demand. The report projects that as the industry gains more confidence, compensation for these roles, especially at the IC-2, IC-3, and MG-1 levels (Figure 3), will rise in response to the growing need for AI innovation.
Figure 3 - Job Level Segmentation
For more in-depth insights into the 2024 trends, hiring practices, and compensation details for AI and data professionals, read the full report by visiting Burtchworks.com.
By The Burtch Works Team
Artificial Intelligence (AI) continues to revolutionize industries across the globe, shaping new roles and reshaping traditional business models. The Burtch Works 2024 Data Science & AI Professionals Salary Report offers unique insights into the hiring trends, salary structures, and industry demands for AI professionals, revealing how the sector is evolving as demand for AI expertise increases.
Increased Investment in AI
As AI continues to mature, so does the investment from both venture capital and corporate sectors. Venture capital and private equity firms are pouring significant resources into AI startups, fostering rapid innovation. Large corporations are also dedicating substantial portions of their budgets to integrate AI into their business models to remain competitive in a rapidly evolving technological landscape.
This influx of investment has driven a sharp demand for AI talent, with many companies prioritizing AI roles in their hiring strategies. However, this demand often outstrips the supply of qualified candidates, leading to intense competition among firms to secure top talent.
AI as a Service: Growing Adoption of AIaaS and DaaS
Another trend identified in the 2024 report is the rising popularity of Data as a Service (DaaS) and AI as a Service (AIaaS) models. These cloud-based solutions allow companies to access advanced AI capabilities without needing to develop in-house infrastructure. Businesses can now integrate AI functionalities—such as machine learning, natural language processing, and computer vision—via APIs, making AI more accessible and scalable.
Cloud integration has become an essential aspect of AI deployment. Major cloud providers are offering a wide range of AI and machine learning services that enable businesses to adopt these technologies quickly, further fueling the demand for AI professionals who are skilled in cloud-based AI deployment.
Hiring Trends: The Focus on Individual Contributors
Interestingly, the report notes that companies remain cautious when it comes to hiring for managerial AI positions. While salaries for individual contributors (ICs) have seen an increase, managerial salaries, especially for mid- to senior-level roles, have decreased. This trend suggests that organizations are focusing on smaller, high-impact teams of AI professionals rather than building large managerial structures.
AI professionals, especially those at the IC-1 and IC-3 levels (defined at Figure 3 below), have seen statistically significant increases in base salaries. Companies are particularly interested in hiring professionals who can make immediate technical contributions, focusing on project-based hiring to assess the impact of AI before scaling up teams.
AI Specialization is Accelerating
One of the defining trends observed in 2024 is the increased specialization within AI. Professionals are no longer generalists; they are developing niche skills that allow them to focus on specific areas, like Natural Language Processing (NLP), Computer Vision, and Large Language Models (LLMs). Emerging roles, such as AI Engineers, Prompt Engineers, and NLP Specialists are increasingly sought after as companies look to capitalize on the potential of generative AI.
These roles have become essential as industries look to develop innovative products and services, relying heavily on AI's ability to enhance core business processes. With the development of technologies like Generative Adversarial Networks (GANs), Transfer Learning, and reinforcement learning, AI professionals are expected to possess highly specialized skills that differentiate them from traditional data scientists.
Salaries Reflect High Demand for AI Talent
The shortage of AI talent is evident in the salary trends reported. AI professionals, who work with unstructured data like text, images, and audio, command higher salaries than data scientists. This is due to the scarcity of professionals with the specialized skills needed to excel in AI.
For example, AI professionals who focus on machine learning, deep learning, and computer vision tend to earn more, especially at the individual contributor levels. The 2024 report reveals that AI salaries have increased at the IC-1 and IC-3 levels, whereas managerial salaries have remained flat or even decreased (Figure 1 and Figure 2). This shift underscores the preference for hiring skilled technical professionals over building large management teams in AI.
Future Outlook: AI Continues to Evolve
The AI industry is on the cusp of further growth as more organizations recognize the transformative potential of the technology. While the market for AI talent remains competitive, companies are adopting a “wait-and-see” approach, piloting small projects before committing to larger investments in AI teams. This approach allows organizations to evaluate AI’s potential and refine their strategies before scaling up hiring.
As AI continues to integrate into core business operations, professionals with specialized AI skills will remain in high demand. The report projects that as the industry gains more confidence, compensation for these roles, especially at the IC-2, IC-3, and MG-1 levels (Figure 3), will rise in response to the growing need for AI innovation.
For more in-depth insights into the 2024 trends, hiring practices, and compensation details for AI and data professionals, read the full report by visiting Burtchworks.com.