LA Employers Want AI Skills, But Won't Pay More
Los Angeles employers are increasingly demanding AI skills from workers, but these new competencies often don't come with a pay raise. A report from L.A. Business First highlights a growing expectation for employees to upskill in AI without additional compensation, creating a potential point of friction in the local job market.
The push for AI skills in Los Angeles is part of a larger national trend, where jobs requiring AI competencies command significant salary premiums. Globally, workers with AI skills can earn up to 56% more, with one study finding that U.S. job postings advertising AI skills offer a 28% higher salary on average—equivalent to nearly $18,000 more per year. The premium can skyrocket to 43% for jobs requiring two or more AI skills. Los Angeles/Orange County has the fourth-largest workforce of AI specialists in North America, with 13,605 workers in the field. The region's tech talent workforce grew by 13% between 2018 and 2023, and the average tech salary saw a 23% increase during the same period, reaching an average of $124,461. This growth is fueled by LA's diverse industry ecosystem, including media, biotech, and finance, all of which are increasingly integrating AI. Despite the local growth and high national pay premiums, a recent report from PayScale reveals a disconnect. While 61% of organizations have updated roles to include AI-related skills, 55% are not offering any additional compensation, bonuses, or equity for these new competencies. This aligns with the trend observed in Los Angeles, creating a point of friction for employees. The demand for AI talent in Los Angeles is strong, with major companies like Google, Microsoft, Amazon, and Netflix actively hiring for AI roles. In-demand skills include machine learning, natural language processing (NLP), and proficiency with AI libraries like TensorFlow and PyTorch. The most commonly requested skills, however, are often knowledge of mainstream tools like ChatGPT or Microsoft Copilot. This expectation for upskilling without immediate financial reward is emerging as AI is increasingly seen as a baseline competency. A recent survey from Zapier showed that 98% of executives want workers who can use AI. The local and national data suggests that while specialized, high-level AI roles can command salaries well into six figures, the broader workforce is now expected to adopt AI skills as a standard part of their professional toolkit.
