Even if AI doesn't take your job, it might dent your paycheck
As companies pour billions into artificial intelligence, the financial pressure isn't just threatening jobs—it may soon hit paychecks.
With AI infrastructure, talent, and tools commanding premium prices, business leaders are exploring ways to fund these investments without solely relying on headcount reductions. A recent ResumeBuilder.com survey of 866 executives and senior managers reveals a concerning trend: 58% plan to reduce employee compensation by the end of 2026 to help offset AI spending. Bonuses and stock awards face the deepest cuts, followed by merit raises, benefits, and even base salaries.
"They have to pay for AI somehow," notes Rocki-Lee DeWitt, a management professor at the University of Vermont's Grossman School of Business. "It ain't cheap."
The numbers back that up. According to research firm IDC, enterprises with over 1,000 employees are projected to spend an average of $13.7 million on AI-related hardware, cloud services, software, and support this year—a 78% jump from 2025. Even industry insiders feel the strain: Nvidia CEO Jensen Huang recently said he'd be "deeply alarmed" if a top engineer underutilized AI tokens, while venture capitalist Chamath Palihapitiya voiced concern about escalating AI costs at his own startup.
Yet for all that spending, returns remain elusive. An MIT study analyzing publicly disclosed AI initiatives and executive interviews found that 95% of organizations reported no measurable ROI from AI in the first half of 2025. Until tangible gains materialize, companies facing inflation, tariffs, and other economic headwinds may tighten belts elsewhere—including employee compensation.
The Compensation Squeeze
While high-profile AI-linked layoffs at companies like Block, Atlassian, and HP have drawn attention, subtler cost-cutting measures may be next. HP, for instance, announced plans to eliminate 4,000–6,000 roles by 2028 to save roughly $1 billion. But for smaller organizations, trimming pay and perks can be a more viable lever than large-scale reductions.
"You can't just lay off 10% of your organization when you have, say, 20 people, and everyone's got their hands in a million different pots," explains Jessica Kriegel, chief strategy officer at workplace consulting firm Culture Partners in Sacramento. She adds that in today's tight labor market, "employees don't have any leverage… They will push back less, and they will accept smaller raises to avoid risk that feels real."
Not all companies are slashing pay, however. The Conference Board projects average salary increases will hold steady at 3.4% in 2026, matching 2025 levels—a sign that some employers are choosing stability over cuts.
How Workers Can Still Advocate for More
Even amid budget constraints, employees aren't powerless. Kris Erickson, cofounder of Workforce Science Associates in Lincoln, Nebraska, advises workers to adopt a "sales mode" mindset when seeking raises: "You have to make yourself invaluable."
Given the massive investments companies are making in AI to drive productivity, demonstrating how you've leveraged these tools to deliver measurable results is critical. But proficiency alone isn't enough. "Asking for a raise because you're proficient in AI is not the strategy," says David Gaspin, an HR professional and executive coach based in New York. "That proficiency is table stakes at this point."
Instead, focus on what makes you irreplaceable. "The key differentiator today is becoming: What can you do that can't be replaced with technology?" Gaspin asks. "Where is your experience, your judgment, your unique point of view adding tangible, quantifiable value to the business? Because that's where companies are going to see risk in you leaving."
In an era where AI promises efficiency but often delivers uncertainty, the workers most likely to thrive won't just use the technology—they'll complement it in ways algorithms cannot.
As companies pour billions into artificial intelligence, the financial pressure isn't just threatening jobs—it may soon hit paychecks.
With AI infrastructure, talent, and tools commanding premium prices, business leaders are exploring ways to fund these investments without solely relying on headcount reductions. A recent ResumeBuilder.com survey of 866 executives and senior managers reveals a concerning trend: 58% plan to reduce employee compensation by the end of 2026 to help offset AI spending. Bonuses and stock awards face the deepest cuts, followed by merit raises, benefits, and even base salaries.
"They have to pay for AI somehow," notes Rocki-Lee DeWitt, a management professor at the University of Vermont's Grossman School of Business. "It ain't cheap."
The numbers back that up. According to research firm IDC, enterprises with over 1,000 employees are projected to spend an average of $13.7 million on AI-related hardware, cloud services, software, and support this year—a 78% jump from 2025. Even industry insiders feel the strain: Nvidia CEO Jensen Huang recently said he'd be "deeply alarmed" if a top engineer underutilized AI tokens, while venture capitalist Chamath Palihapitiya voiced concern about escalating AI costs at his own startup.
Yet for all that spending, returns remain elusive. An MIT study analyzing publicly disclosed AI initiatives and executive interviews found that 95% of organizations reported no measurable ROI from AI in the first half of 2025. Until tangible gains materialize, companies facing inflation, tariffs, and other economic headwinds may tighten belts elsewhere—including employee compensation.
The Compensation Squeeze
While high-profile AI-linked layoffs at companies like Block, Atlassian, and HP have drawn attention, subtler cost-cutting measures may be next. HP, for instance, announced plans to eliminate 4,000–6,000 roles by 2028 to save roughly $1 billion. But for smaller organizations, trimming pay and perks can be a more viable lever than large-scale reductions.
"You can't just lay off 10% of your organization when you have, say, 20 people, and everyone's got their hands in a million different pots," explains Jessica Kriegel, chief strategy officer at workplace consulting firm Culture Partners in Sacramento. She adds that in today's tight labor market, "employees don't have any leverage… They will push back less, and they will accept smaller raises to avoid risk that feels real."
Not all companies are slashing pay, however. The Conference Board projects average salary increases will hold steady at 3.4% in 2026, matching 2025 levels—a sign that some employers are choosing stability over cuts.
How Workers Can Still Advocate for More
Even amid budget constraints, employees aren't powerless. Kris Erickson, cofounder of Workforce Science Associates in Lincoln, Nebraska, advises workers to adopt a "sales mode" mindset when seeking raises: "You have to make yourself invaluable."
Given the massive investments companies are making in AI to drive productivity, demonstrating how you've leveraged these tools to deliver measurable results is critical. But proficiency alone isn't enough. "Asking for a raise because you're proficient in AI is not the strategy," says David Gaspin, an HR professional and executive coach based in New York. "That proficiency is table stakes at this point."
Instead, focus on what makes you irreplaceable. "The key differentiator today is becoming: What can you do that can't be replaced with technology?" Gaspin asks. "Where is your experience, your judgment, your unique point of view adding tangible, quantifiable value to the business? Because that's where companies are going to see risk in you leaving."
In an era where AI promises efficiency but often delivers uncertainty, the workers most likely to thrive won't just use the technology—they'll complement it in ways algorithms cannot.