Microsoft is paying its AI software engineers an average of $120,000 more per year compared to employees in other divisions like Azure, according to a leaked document. The spreadsheet, reportedly from Microsoft employees, shows that the average AI software engineer earns up to $377,611 annually. These figures highlight Microsoft’s focus on artificial intelligence and its commitment to becoming a leader in AI technology.
The company is investing heavily in AI projects like Copilot, while other departments seem to be less of a priority. This has been part of an internal reorganization to position Microsoft at the forefront of AI. The leaked document also revealed that the highest-ranking employees at Microsoft receive a base pay of $231,700 to $361,500, along with significant bonuses and stock awards.
In contrast, the lowest-ranking employees have a base salary of $42,500 with no additional compensation.
Microsoft’s AI salary disparities revealed
Microsoft’s emphasis on AI has reportedly caused some discontent among employees in other divisions who feel undervalued, especially given the pay disparity.
This may negatively impact their performance and morale, further widening the gap between divisions. Despite this internal tension, Microsoft’s AI investment has boosted the company’s market valuation, making it more attractive to investors and customers. However, there are concerns among investors about Microsoft’s substantial AI expenditure and the challenge of generating significant revenue and profit from these investments in the short term.
The company also faces a reported talent shortage, with executives emphasizing the need for professionals with AI skills. This has led to an increase in LinkedIn members adding AI proficiencies to their profiles. The focus on AI reflects a broader trend in the tech industry, where companies are pivoting towards cutting-edge technologies to maintain competitive advantages and drive future growth.
As AI continues to be integral to technological progress, companies like Microsoft are likely to remain at the forefront of this transformational shift.
