AI Threatens Salaries: Companies Seeking Balance

Massive Investments in AI and Their Impact on Salaries

In their quest for innovation, companies are making massive investments in artificial intelligence (AI). However, a recent study reveals that the majority of them have yet to see significant returns on investment. To offset these expenses, some companies are considering measures such as layoffs or reducing compensation elements like bonuses and stock grants. Despite this, workers still have the opportunity to negotiate raises by highlighting their skills and added value in the field of AI.

The impact of AI is not limited to the threat of job losses. Companies are investing not only in technology but also in specialized AI talent, which incurs substantial costs. A survey conducted among U.S. business leaders indicates that some are considering reducing employee compensation to balance these expenses.

Rising Costs of AI

Rocki-Lee DeWitt, a management professor at the University of Vermont, emphasizes that AI represents a costly investment for companies. According to forecasts from research firm IDC, companies with more than 1,000 employees are expected to spend an average of $13.7 million this year on hardware, cloud infrastructure, software, and AI-related services. This marks a 78% increase compared to 2025, according to a global analysis.

Jensen Huang, CEO of Nvidia, expressed his concerns during a podcast, stating that he would be alarmed if his engineers were spending too little on AI tokens. Meanwhile, Chamath Palihapitiya, a venture capitalist, also voiced his worries about the rising costs associated with AI in his startup.

Despite these significant investments, 95% of organizations have not yet observed measurable returns on investment from AI in the first half of 2025, according to a study by MIT. As long as companies do not see tangible benefits, they may be forced to cut other expenses, especially in a context of high rates, inflation, and other budgetary pressures.

Cost-Cutting Strategies

Several companies have already announced layoffs related to AI in recent months, including Block and Atlassian. Others may follow this trend, as reported by Business Insider. In November, HP announced its intention to eliminate between 4,000 and 6,000 jobs by the end of 2028, aiming to save approximately $1 billion.

Salary reductions could be the next step for some companies. A survey conducted by ResumeBuilder.com revealed that 58% of executives and senior managers plan to reduce employee compensation by the end of the year to fund their AI investments. Bonuses and stock grants would be the most affected, followed by raises, benefits, and base salaries.

Jessica Kriegel, strategy director at Culture Partners, explains that in a tight labor market, employees have little negotiating power. They may accept more modest raises to avoid perceived risks that seem real.

ResumeBuilder did not specify the size of the companies involved in the survey, but Kriegel notes that small businesses are more likely to cut salaries or benefits rather than proceed with layoffs. "In a small business, laying off 10% of the staff is often impractical," she explains.

Another strategy for companies facing rising AI-related costs could be to maintain stable compensation. The Conference Board forecasts that average salary increases will remain at 3.4% this year, the same rate as in 2025.

How to Secure a Raise Despite Everything

Despite the challenges posed by AI, employees can still negotiate salary increases. Kris Erickson, co-founder of Workforce Science Associates, advises workers to position themselves as indispensable. "When budgets are tight, you need to sell yourself to get a raise," she says.

It is crucial to demonstrate how the use of AI has led to tangible results. David Gaspin, an HR expert, emphasizes that mere proficiency in AI is no longer sufficient to justify a raise. "This skill is now a prerequisite," he asserts.

Employees must also show how AI cannot replace them. "The differentiating factor is what you can do that technology cannot," Gaspin explains. "Your experience, judgment, and unique perspective must bring tangible value to the company." This is where companies will see the risk of losing you.