How AI and Automation Impact IT Salary Rates: Threat or Opportunity?

The IT industry is in the middle of a significant change. Driven by an unprecedented rate of use of Artificial Intelligence and Automation, as much as these technologies bring undeniably new efficiencies, they’re also transforming labor markets-skills demand, salary structures, and more.

While some fear job displacement and wage stagnation, others see it as an opportunity for career growth and increased earning potential. That said, the most important question would be, are AI and automation an opportunity or a threat to IT salaries as professionals find themselves in more demand with higher pay in certain key roles?

This article outlines how automation and AI are affecting IT salaries and some of the roles that are “automation-proof.”

A Look at How AI and Automation Affect IT Salaries

According to the 2025 tech salary guide, the IT salary will be influenced by the demand for high-skilled roles and emerging technologies. The increasing adoption of automation and AI is creating a notable salary divide in the IT sector, with rates shifting dramatically based on expertise in these new technologies.

For instance, AI is creating demand for high-technical-expertise IT professionals. These positions are highly specialized and engross deep knowledge in programming, data science, machine learning, and cybersecurity. All these aspects are core components in the making, managing, and bettering of AI systems, hence commanding a high salary.

Here are some of the reasons for the rising salaries in such roles:

Specialized expertise: High-skilled roles demand technical proficiency in areas like AI development, data analytics, and cloud architecture. Professionals with these skills are scarce, driving up salaries as companies compete for top talent.
Increased responsibility: High-skilled professionals are not just executing tasks—they’re designing, optimizing, and managing complex systems that power automation and AI. This added responsibility often translates into higher pay.
Business priorities: Organizations are prioritizing innovation and security, which require hiring experts who can ensure their AI and automation systems perform effectively and ethically.

These reasons continue to shape how tech professionals will be paid going into the future. It will also determine the kind of roles aspiring professionals can take to get better pay.

High-Skilled Roles and Salaries

While there’s a threat of automation replacing many roles in the tech industry, some roles have proven to be automation-proof and will continue demanding high salaries. They include:

Data Science and Analytics

Data science and analytics stand at the forefront of today’s IT landscape, with an increasing emphasis on data-driven decision-making. What makes these roles particularly resistant to automation is their need for contextual understanding and creative interpretation of data patterns.

Data scientists don’t just process numbers; they identify which questions need to be asked in the first place, design innovative approaches to data collection and analysis, and translate complex findings into actionable business strategies.

While AI can process vast amounts of data, it’s the human data scientists who determine which insights are truly valuable and how they align with business objectives. According to a recent study, demand for data science skills is projected to grow by 36% from 2023 to 2033, underlining these professionals’ vital role in driving business success. (1)

Cybersecurity

As cyber threats evolve, companies need experts who can provide human oversight and strategic responses to these challenges. Automation tools, while beneficial, cannot fully replace the nuanced judgment required to identify and neutralize threats.

Cloud Computing Specialists

The reliance on cloud computing is growing since this is what businesses want: solutions for storage, automation, and scalability. As this trend continues, a skilled cloud computing specialist able to integrate, optimize, and manage cloud solutions has been in demand.

As more and more of the operations are migrating to the cloud, the need for expertise in cloud architecture and management becomes critical. A survey found that by 2026, 45% of all IT budget will be spent on cloud computing, illustrating the expansive opportunities for professionals in this field. (2)

As a matter of fact, these positions are not only “automation-proof” but also in high demand with the growth of AI technologies, hence becoming one of the highest-paid ones within the IT sector.

Stagnation or Decline in Lower-Skilled Roles

While high-skilled professionals benefit from automation, lower-skilled IT workers are feeling the opposite effect. As the adoption of automation and AI continues, many repetitive, manual tasks that have traditionally been performed by entry-level or mid-level workers are being displaced.

Here’s a detailed look at it:

Automation of Routine Tasks

The rise of automation in the IT sector has significantly impacted lower-skilled roles by replacing routine tasks with advanced technologies. In fact, several roles are going to be affected by automation and AI, with statistics indicating that between 9%-47% of jobs will be automated in the future. (3)

These technologies allow organizations to handle issues more efficiently without human intervention, leading to a reduced demand for traditional help desk and basic system administration roles.

Some of the jobs affected by automation include:

IT Help Desk Support: Previously a standard entry-level role, this position is increasingly being replaced by automated tools.
Basic System Administrators: Routine tasks like server monitoring and maintenance can now be automated, reducing the need for human oversight in these roles.

As a result, many positions that once required human oversight are now being rendered obsolete, forcing a reevaluation of career pathways for those in lower-skilled IT jobs.

Impact on Salaries

The impact of automation extends beyond job displacement; it also affects salary structures within the industry. Wage compression is becoming increasingly common for roles that are easily automated, as employers may prioritize cost-saving technologies over human labor.

This trend can lead to stagnating wages for lower-skilled positions, further diminishing the attractiveness of these roles. Additionally, the threat of potential job losses looms large, prompting many workers to consider reskilling or transitioning to higher-skilled positions that are less vulnerable to automation. The need for continuous learning and adaptation has never been more critical in the face of rapid technological advancements.

The Opportunity for Reskilling and Upskilling

As automation continues to be a mainstay trend in the tech space, professionals can cushion themselves against the risk of job and salary loss in the following ways:

Adapting to the AI and Automation Era

The importance of continuous learning and skill development has become paramount. Professionals must adapt to new technologies and methodologies to remain relevant in their roles. Fortunately, there is an increasing availability of online courses and certifications that cater to these needs.

Platforms offering certifications in areas such as AWS, Google Cloud, and various cybersecurity fields enable individuals to enhance their skill sets conveniently and effectively. This shift toward lifelong learning empowers individuals to seize new opportunities that arise in the changing job market.

The Role of Employers in Reskilling

Employers also play a crucial role in facilitating the reskilling of their teams. Many companies are recognizing the necessity of training programs designed to help employees transition to higher-value roles that are less susceptible to automation.

For instance, IT professionals who previously focused on system administration are increasingly moving towards cloud architecture roles, which offer greater demand and better job security.

Conclusion

AI and automation are both a challenge and an opportunity for IT professionals. While these technologies are automating routine tasks and reducing demand for lower-skilled roles, they are also driving unprecedented demand for high-skilled professionals. As a result, IT salary rates are becoming increasingly polarized, with lucrative opportunities for those who possess the right skills.

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