AI and ML Salaries in India Projected To Reach Up to INR 45 Lakh per Annum by 2026 as Demand for Tech Talent Surges

Mumbai, January 18: Artificial Intelligence (AI) and Machine Learning (ML) have transitioned from futuristic concepts to primary drivers of the Indian corporate landscape. This shift is manifesting in a significant escalation of compensation packages for tech professionals across the country. By 2026, these roles are projected to become the highest-paying positions within the Indian technology sector, reflecting the high value companies now place on automation and data-driven decision-making.

Industry analysis conducted by TestLeaf indicates that India’s AI and ML market is currently expanding at a rate of more than 40 per cent year-on-year. This rapid growth is expected to create an ecosystem capable of supporting over one million job roles by 2026. As traditional IT roles face stagnation, the pivot toward AI-driven expertise is redefining career trajectories for thousands of engineers and data scientists. Hiring in India 2026: Around 52% of Tech, Banking Professionals Say Their Companies Plan To Increase Recruitment Amid Mass Layoffs in US.

AI and ML Salary Trends

The financial incentives for entering this field are evident even at the entry-level. Fresh graduates securing roles in AI and ML typically receive starting salaries ranging between INR 5 lakh and INR 9 lakh per annum. These figures notably surpass the average entry-level pay for traditional software development or maintenance roles.

As professionals progress to the mid-career stage, defined by three to five years of experience, the compensation reflects a sharp upward curve. AI and ML engineers at this level often earn between INR 10 lakh and INR 20 lakh per annum. At this juncture, industry experts note that practical skills in data handling, model training, and deployment are valued more heavily than formal academic credentials.

Senior Talent and Specialised Roles

The most substantial financial gains are reserved for senior professionals with over seven years of experience. Experts serving as AI architects, senior data scientists, or ML leads can command salaries between INR 20 lakh and INR 45 lakh per annum. In instances where professionals manage large-scale teams or oversee critical infrastructure projects, the compensation can exceed these brackets.

Several factors are contributing to this rapid appreciation in wages. Primarily, there is a pronounced shortage of skilled professionals capable of solving complex business problems through AI rather than just writing basic code. Furthermore, the integration of AI across diverse sectors such as finance, healthcare, e-commerce, and media has intensified the competition for top-tier talent.

Geographic and Sector Influence

The location of the role continues to play a pivotal role in determining salary scales. Bengaluru remains the primary hub for AI employment, bolstered by its mature startup ecosystem and the presence of global tech giants. Other cities, including Delhi NCR, Hyderabad, and Pune, are also emerging as significant contributors to the AI job market, albeit with varying pay structures. AI Hiring in India Projected To Rise by 32% in 2026 With Nearly 3.8 Lakh Roles, Says Foundit Report.

Specialised skill sets remain the ultimate differentiator for those seeking the highest pay. Proficiency in Python, deep learning frameworks, generative AI, and MLOps (Machine Learning Operations) significantly enhances a candidate's market value. While startups often attract talent with the promise of rapid career progression and stock options, larger corporations continue to appeal to professionals through stability and global exposure.

(The above story first appeared on LatestLY on Jan 18, 2026 02:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).