How much do artificial intelligence engineers earn? Salary guide for 2023

According to PricewaterhouseCoopers' Global Artificial Intelligence Study, artificial intelligence (AI) could add up to $15.7 trillion to the global economy by 2030, more than the combined output of China and India today. Organizations are turning to artificial intelligence to make decisions, improve efficiency, and ultimately increase profits.

Artificial intelligence engineers are helping to rethink how we use machine learning (ML) algorithms, models, and tools to make our products, services, and global systems work. They can easily earn six-figure salaries because this kind of work requires a lot of technical knowledge that is in high demand.

In this article, you'll find out how much an AI engineer earns. We'll categorize them by experience, industry, and location, and give tips on how to increase your salary.

What is the average salary for an artificial intelligence engineer?

According to the U.S. Bureau of Labor Statistics, AI engineers are categorized as computer and information research professionals and can earn a median annual salary of $131,490. According to Glassdoor, the median base salary for an AI engineer in the United States is $105,013.

While the salary range for AI engineers varies, these figures are well above the average annual salary of $58,260 for all occupations in the United States.

Employment prospects for artificial intelligence engineers

Jobs for AI engineers are projected to grow 21% between 2021 and 2031, much faster than the average for all occupations (5%).

Artificial intelligence engineers typically work for companies to help them improve their products, software, operations, and delivery. They are typically employed in the technology, finance, healthcare, and consulting industries.

According to LinkedIn's New Jobs 2020 report, hiring growth for AI professionals, including engineers, has increased 74% annually over the past four years.

Several factors can affect the amount of money you can earn as an AI engineer. Let's take a closer look at how experience, industry, and location can affect your earning potential.

Salary of an AI engineer depending on experience

One of the most important factors affecting your salary is your level of experience. Logically, the more experience you have as an AI engineer, the more knowledge and experience you have, and the more you can expect to be paid.

Here's how experience can affect an AI engineer's salary, according to Glassdoor:

• 2 to 4 years (Artificial Intelligence Engineer or Senior Artificial Intelligence Engineer): $137,368.

• 5 to 7 years (Lead Artificial Intelligence Engineer): $139,246.

• 8+ years (Principal Machine Learning Engineer): $148,879.

• 8+ years (director of machine learning): $153,183

• 8+ years (VP of machine learning): $172,715

Moving into a leadership role, such as Director or VP of OD or AI, can increase your salary by tens of thousands of dollars. However, you may prefer to focus on your expertise rather than managing a team, in which case you can earn more by changing companies or negotiating a higher salary by proving your value.

Salaries of artificial intelligence engineers by industry

AI engineers are not required in every industry, but in those that are, such as technology, finance, healthcare, and retail, AI engineer salaries can vary widely. Generally, salary ranges reflect the respective industries. For example, technology and finance companies tend to pay well, so salaries for AI engineers working in these industries are likely to be above average.

Salary of an AI engineer depending on location

Place of residence can also affect the amount of money an AI engineer earns. Typically, working for companies located in large cities such as New York, San Francisco, Washington, D.C., Boston, and Chicago is associated with higher salaries. This is partly due to the higher cost of living in these areas.

As companies continue to hire geographically dispersed staff, including remote workers, employers may offer location-based salaries. However, this can be problematic, as merit and experience must also be taken into account when setting such salaries, so location-based salaries may be considered unfair.

According to Glassdoor, these are the annual base salaries for AI engineers in the following major U.S. cities:

• San Francisco, CA: $117,323.

• Chicago, Illinois: $116,220.

• New York, NY: $110,000.

• Los Angeles, CA: $107,649.

• Boston, Massachusetts: $109,259.

• Houston, Texas: $102,222.

• Washington, D.C.: $91,654.

Tips on how to earn more

Let's say you are an artificial intelligence engineer who has been working for several years. Here are some ways to increase your earnings:

• Get a Master's Degree: While it's not at all necessary to have a master's degree to get into an AI engineering position (or to reach one), approximately 17% of engineers or AI professionals have a master's degree. That's compared to 63% who have a bachelor's degree. A master's degree can help you negotiate a higher salary because you'll have a solid credential and experience to back up your work experience.

• Improve your technical skills: There is always more to learn in AI and machine learning. Continually improving your technical skills, particularly updating tools and systems, and expanding your repertoire of algorithms and modeling techniques can help you earn more. Deepening your knowledge of a specific industry can also help you earn a higher salary.

• Negotiating: One of the most common mistakes job seekers make is not negotiating or not specifying their full earning potential. According to Forbes, 70% of managers expect negotiation when making a job offer, but fail to indicate that the offer may be flexible. If you choose not to negotiate, the salary gap can widen over time and prevent you from realizing your full earning potential.