15 years of experience vs 5 years of AI skills: Which pays more?
AI skills are becoming a bigger driver of salaries than years of experience in India's technology sector, according to a new 1 Finance Research report. The study found AI professionals earn up to 38% more than their peers in traditional IT roles, with the pay gap widening at senior levels.
- Jul 23, 2026,
- Updated Jul 23, 2026 9:05 AM IST
India's technology job market is increasingly rewarding specialised artificial intelligence (AI) skills over years of experience, according to a new report by 1 Finance Research. The study suggests that employers are placing a growing premium on AI expertise, with AI-related roles paying significantly more than traditional IT jobs across every experience level. The findings indicate that the industry's biggest divide is no longer between junior and senior professionals, but between those with AI capabilities and those without them.
The report analysed 950 job postings across Mumbai, Pune, Delhi-NCR, Hyderabad and Bengaluru and found that AI professionals earn higher salaries than their counterparts in conventional software and IT roles, with the gap widening as careers progress.
AI skills command a higher pay cheque
According to the report, AI-related roles pay more than traditional IT positions at every stage of a career. Professionals with 0-3 years of experience earn an average salary of ₹6 lakh per annum in AI roles, compared with ₹5 lakh in traditional IT jobs, representing a 20% premium.
MUST READ: Here’s how AI is driving India's data centre investment pipeline
The gap becomes wider with experience. Employees with 3-5 years of experience earn ₹12 lakh in AI roles against ₹9 lakh in traditional IT, while those with 5-10 years receive ₹22 lakh compared with ₹17 lakh. At the senior level, professionals with over 10 years of experience earn an average ₹36 lakh annually in AI-related roles versus ₹26 lakh in traditional IT, translating into a 38% salary premium.
The report also found that experienced AI specialists can command salaries of up to ₹70 lakh, while compensation in many traditional IT roles tends to plateau between ₹23 lakh and ₹58 lakh.
| Experience | AI-Related Roles (Avg Annual Salary) | Traditional IT Roles (Avg Annual Salary) | AI Salary Premium |
| 0–3 years | ₹6 lakh | ₹5 lakh | 20% |
| 3–5 years | ₹12 lakh | ₹9 lakh | 33% |
| 5–10 years | ₹22 lakh | ₹17 lakh | 29% |
| 10+ years | ₹36 lakh | ₹26 lakh | 38% |
Source: 1 Finance Research analysis of 950 job postings across Mumbai, Pune, Delhi-NCR, Hyderabad and Bengaluru.
Experience alone no longer guarantees higher pay
For decades, career progression in India's IT industry largely depended on seniority. The report argues that this equation is changing as employers increasingly value specialised AI capabilities over years spent in conventional technology roles.
It notes that the widening salary gap at senior levels reflects a structural shift in hiring priorities. Professionals who have accumulated years of experience but have not developed AI skills may find themselves earning less than colleagues with fewer years in the industry but stronger AI expertise.
The findings suggest that a professional with five years of experience in AI or machine learning could, in some cases, command better compensation than someone with 15 years in traditional software development if the latter lacks relevant AI skills.
Should professionals invest in AI skills?
The report says the current discussion around AI often centres on job displacement, but the data points to a different trend. Rather than shrinking the workforce, AI is reshaping salary structures by rewarding scarce skills.
Demand for AI talent in India is growing at roughly 25% annually, while supply is increasing at only 15%, creating a persistent shortage of skilled professionals. NASSCOM expects the country's AI talent pool to double to 1.25 million by 2027, though demand is still projected to exceed supply.
Global Capability Centres (GCCs) are reinforcing this trend by offering 12-20% higher salaries than traditional IT firms, with premiums rising to 30-50% for AI and data specialists. The report also notes that 64% of new GCC roles now require AI, data or automation skills.
The findings suggest that for technology professionals, continuous learning is becoming an increasingly important part of career growth. As companies compete for AI talent, specialised skills are emerging as a stronger determinant of earning potential than experience alone, signalling a broader transformation in India's technology employment landscape.
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India's technology job market is increasingly rewarding specialised artificial intelligence (AI) skills over years of experience, according to a new report by 1 Finance Research. The study suggests that employers are placing a growing premium on AI expertise, with AI-related roles paying significantly more than traditional IT jobs across every experience level. The findings indicate that the industry's biggest divide is no longer between junior and senior professionals, but between those with AI capabilities and those without them.
The report analysed 950 job postings across Mumbai, Pune, Delhi-NCR, Hyderabad and Bengaluru and found that AI professionals earn higher salaries than their counterparts in conventional software and IT roles, with the gap widening as careers progress.
AI skills command a higher pay cheque
According to the report, AI-related roles pay more than traditional IT positions at every stage of a career. Professionals with 0-3 years of experience earn an average salary of ₹6 lakh per annum in AI roles, compared with ₹5 lakh in traditional IT jobs, representing a 20% premium.
MUST READ: Here’s how AI is driving India's data centre investment pipeline
The gap becomes wider with experience. Employees with 3-5 years of experience earn ₹12 lakh in AI roles against ₹9 lakh in traditional IT, while those with 5-10 years receive ₹22 lakh compared with ₹17 lakh. At the senior level, professionals with over 10 years of experience earn an average ₹36 lakh annually in AI-related roles versus ₹26 lakh in traditional IT, translating into a 38% salary premium.
The report also found that experienced AI specialists can command salaries of up to ₹70 lakh, while compensation in many traditional IT roles tends to plateau between ₹23 lakh and ₹58 lakh.
| Experience | AI-Related Roles (Avg Annual Salary) | Traditional IT Roles (Avg Annual Salary) | AI Salary Premium |
| 0–3 years | ₹6 lakh | ₹5 lakh | 20% |
| 3–5 years | ₹12 lakh | ₹9 lakh | 33% |
| 5–10 years | ₹22 lakh | ₹17 lakh | 29% |
| 10+ years | ₹36 lakh | ₹26 lakh | 38% |
Source: 1 Finance Research analysis of 950 job postings across Mumbai, Pune, Delhi-NCR, Hyderabad and Bengaluru.
Experience alone no longer guarantees higher pay
For decades, career progression in India's IT industry largely depended on seniority. The report argues that this equation is changing as employers increasingly value specialised AI capabilities over years spent in conventional technology roles.
It notes that the widening salary gap at senior levels reflects a structural shift in hiring priorities. Professionals who have accumulated years of experience but have not developed AI skills may find themselves earning less than colleagues with fewer years in the industry but stronger AI expertise.
The findings suggest that a professional with five years of experience in AI or machine learning could, in some cases, command better compensation than someone with 15 years in traditional software development if the latter lacks relevant AI skills.
Should professionals invest in AI skills?
The report says the current discussion around AI often centres on job displacement, but the data points to a different trend. Rather than shrinking the workforce, AI is reshaping salary structures by rewarding scarce skills.
Demand for AI talent in India is growing at roughly 25% annually, while supply is increasing at only 15%, creating a persistent shortage of skilled professionals. NASSCOM expects the country's AI talent pool to double to 1.25 million by 2027, though demand is still projected to exceed supply.
Global Capability Centres (GCCs) are reinforcing this trend by offering 12-20% higher salaries than traditional IT firms, with premiums rising to 30-50% for AI and data specialists. The report also notes that 64% of new GCC roles now require AI, data or automation skills.
The findings suggest that for technology professionals, continuous learning is becoming an increasingly important part of career growth. As companies compete for AI talent, specialised skills are emerging as a stronger determinant of earning potential than experience alone, signalling a broader transformation in India's technology employment landscape.
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