The artificial intelligence boom has led to a significant increase in compensation packages for employees working in AI-related roles, creating a situation known as ‘golden handcuffs’ where workers feel unable to leave their current positions due to high salaries and benefits. Companies like Google, Microsoft, and Meta are offering substantial compensation packages, sometimes reaching millions of dollars, to retain AI talent. This trend is expected to continue through 2025, with AI specialists commanding premium salaries and benefits. The article highlights how these high compensation packages are making it difficult for smaller companies and startups to compete for AI talent, as employees are reluctant to leave their lucrative positions at major tech companies. The compensation packages often include significant stock options and retention bonuses specifically tied to AI projects. Industry experts note that this creates a challenging dynamic in the job market, where mobility is restricted despite numerous opportunities in the AI sector. The situation also raises concerns about innovation, as talented individuals may be less likely to take risks or join startups. Companies are particularly focused on retaining employees with specialized AI knowledge in areas such as machine learning, natural language processing, and neural networks, leading to an increasingly competitive compensation landscape in the tech industry.
Source: https://www.businessinsider.com/ai-boom-employee-pay-restricting-golden-handcuffs-big-tech-2025-10