According to the inaugural Indeed AI at Work Tracker 2026 released today, a massive gap has widened between what employers are willing to pay for external AI talent versus how they are compensating their existing workforces. The study, which surveyed 1,267 employers and 2,541 employees across India, reveals that while 66% of employers state they offer substantial salary premiums for AI-skilled roles, more than half of AI-exposed workers (54%) report that their compensation has either stagnated or actually decreased over the past year.
The survey highlights a sharp divergence in how the financial benefits of the AI boom are being distributed:
The Employer Offer: Over 40% of organizations state that AI-skilled positions command an 11–30% premium over non-AI roles, while an aggressive 26% report offering premiums between 31–50%.
The Employee Reality: Among professionals with direct day-to-day AI exposure, 36% saw zero change in their compensation package, while 18% reported a net decrease in their overall earnings. Only a small minority achieved the high-bracket increases advertised in the external job market.
This data indicates that while the external hiring market aggressively prices AI expertise to attract new talent, internal corporate compensation cycles are lagging significantly, leaving existing mid-career and senior professionals behind.
Sashi Kumar, Managing Director, Indeed India, said: "Acquiring AI talent externally is only one half of the equation; retaining and motivating the workforce that upskills internally is the other. This disconnect creates a dual vulnerability for organizations, sparking job insecurity while accelerating the attrition of senior institutional talent. Winning the AI transition requires organizations to align their internal appraisal models with the real-world value their upskilled employees are generating.”
AI is reshaping careers, one step at a time
While public discourse often focuses on AI replacing jobs, employees describe a more gradual transition. Only 11% say AI has completely transformed their role, while a combined 65% report moderate or incremental changes. Around 24% say AI has not yet changed the way they work.
AI is also influencing career decisions. More than half (51%) say AI has significantly or somewhat influenced the types of jobs they apply for or aspire to, suggesting professionals are proactively adapting their career choices as AI adoption grows.
Skills emerge as the new currency
As organizations navigate this transition, the criteria for entering the AI workforce have fundamentally shifted from pedigree to proof. The survey by Indeed highlights that the traditional academic degree is no longer the primary gatekeeper for high-tech roles.
40% of employers now explicitly prioritize demonstrable AI skills and certifications over formal university degrees.
Only 9% still prioritize an academic degree alone when evaluating candidates for AI roles.
The workforce is highly aligned with this shift, with only 20% of employees believing that a traditional degree carries the most weight in the current job market.
Employees are increasingly recognising this shift in employer expectations. Nearly 37% believe employers now value skills and degrees equally when hiring for AI roles, while 31% believe AI skills and certifications carry greater weight than formal academic qualifications.
The conversation around AI has largely focused on whether jobs will disappear. What our numbers say instead is that jobs are evolving as AI becomes part of everyday work. Employers are increasingly rewarding demonstrable skills over pedigree. For professionals, continuous learning and practical experience are becoming the strongest indicators of long-term career success.
Flexibility is rising, but so is anxiety
The report suggests that professionals increasingly define themselves by their ability to learn rather than by traditional job titles. More than half (51%) identify themselves through their skills, learning ability or adaptability, compared with just 17% who define themselves primarily by their designation. Another 19% say they are still figuring out their professional identity, while 13% believe their careers are evolving beyond a single role or label.
Employers expect AI to become a significant part of workforce planning, but not the sole focus. By 2027, nearly 46% expect AI-related or AI-supported roles to account for between 30% and 70% of their workforce strategy, while only around 6% anticipate AI dominating more than 90% of workforce planning. The findings suggest that AI will increasingly complement existing jobs rather than replace them outright.
AI hiring is steady
AI hiring continued to strengthen through 2025, with 63% of employers reporting an increase in recruitment for AI-related roles compared to the previous year. Rather than a dramatic hiring surge, the findings point to steady growth across functions such as AI engineering, strategy, operations, governance and ethics, reflecting how organizations are embedding AI capabilities into their existing workforce.
Despite this growing adaptability, concerns about job security remain. Around 42% of employees say they feel highly or somewhat anxious about AI's impact on their careers, while anxiety is highest among unemployed job seekers.
AI is also transforming how organisations hire. Nearly 47% of employers already use AI in recruitment, while another 31% plan to introduce AI-powered hiring tools in the coming years, signalling that AI is becoming embedded across both hiring decisions and workforce planning.
Methodology
The Indeed AI at Work Tracker 2026 is based on surveys conducted on behalf of Indeed among 1,267 employers and 2,541 employees across India. The study captures perspectives from organizations of varying sizes and employees across industries, experience levels and employment types, examining AI hiring trends, skills demand, salary premiums, AI adoption in recruitment, workforce sentiment and the evolving nature of work.
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