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The artificial intelligence (AI) boom has led to significant increases in both job opportunities and compensation, as demand for tech talent remains high in China. According to a new industry report, wages for AI-skilled workers have been trending upward, with those experienced in machine learning, engineering and deep learning securing impressive salaries.

Fueled by a surge in demand as Chinese companies rush to update and develop more AI applications, monthly salaries in this field increased by an average of 5.3 percent to 13,594 yuan ($1,869) during the second quarter compared with the previous year, according to a report Chinese job-hunting platform Zhilian Zhaopin sent to the Global Times on Monday.

The rapid growth of the AI industry and its critical role in driving digital transformation have turned it into a highly competitive field for job seekers and companies vying for high-end talent, the report said.

This trend is confirmed by industry analysts and business insiders, who believe the increasing demand for AI talent has translated into higher pay for AI-related industries. 

The demand for AI experts is driving up salaries and offering lucrative financial incentives, with some professionals receiving offers exceeding 1 million yuan in total compensation, including significant equity, the Global Times has learned from a source familiar with the matter on Monday.

According to this source, as the market's demand for AI talent is constantly growing, tech companies are willing to pay higher salaries in order to attract and retain these highly rated professionals.

Chinese companies such as TikTok, Huawei and Tencent are now competing for top talent in the AI sector, offering competitive salaries to secure their positions in the global race for technological supremacy, thepaper.cn reported. These companies have either implemented innovative talent cultivating strategies to nurture local talent or have invested in training the next generation of AI workers.

The AI talent race is creating a promising landscape for tech professionals. On the global stage, the hunger for AI-savvy recruits is expected to grow as well. According to data from Levels.fyi, a US salary data website, the increasing impact of AI on industries is leading to higher engineering salaries. There is a noticeable difference in how much money software engineers who specialize in AI make compared with those who do not, the report said.

In 2024, entry level AI engineers are earning 8.57 percent more than their non-AI counterparts, while AI engineers now earn around 11.19 percent more than non-AI engineers. AI engineers earn $239,000, whereas non-AI engineers make $221,650 on average, according to the report. 

China's development of AI has made strides in recent years, as the country is making a fresh push to vigorously develop new quality productive forces. Meanwhile, the revolutionary technology is increasingly being used in nearly all industrial and service segments, analysts said.

The hunger for AI-savvy recruits is expected to grow as AI continues to shake up much of the industry, and it raises the bar for engineering compensation in 2024, Liu Gang, chief economist at the Chinese Institute of New Generation AI Development Strategies, told the Global Times on Monday.

Meanwhile, the demand for AI-skilled talent is expected to increase significantly, as big tech firms are pouring resources into advancing AI technology. The competition for top AI talent is ongoing, Liu added.

China now hosts more than 4,500 AI companies. Its core AI industry reached a scale of more than 578 billion yuan ($81 billion) in 2023, up 13.9 percent year-on-year, the Xinhua News Agency reported. 

However, despite huge breakthroughs in the field, the industry still faces challenges such as talent retention, mismatches in supply and demand for skilled professionals, and the critical need for a robust talent training system.

Looking ahead, as the market for AI talent is maturing, companies may readjust their hiring practices and compensation strategies to align more closely with market standards, according to experts.