2025 Compensation Changes & Prioritization: AI vs. Data Science Roles

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Data Science VS. Artificial Intelligence (AI):  Compensation and Role Trends

AI and Data Science may share tools, but their missions—and market value—are diverging. AI is shifting from experimental to operational, and the talent market is adapting accordingly. Compensation is also shifting to reflect where the scarcest, most business-critical skills now reside.

‍Data Scientists are decision enablers. They specialize in:

  • Statistical modeling and classical machine learning
  • Experiment design and causal inference
  • Forecasting, segmentation, and predictive analytics
  • Building models embedded into BI tools or deployed via batch and stream scoring

Driving insightful business decisions, often powering executive dashboards and operational efficiencies.

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‍AI Professionals, on the other hand, are system builders. They focus on:

  • Designing and deploying ML/LLM systems that interact with users and real-world workflows
  • Working across structured, semi-structured, and multimodal data sources
  • Fine-tuning, distilling, and grounding large language models (LLMs)
  • Running RLHF (Reinforcement Learning with Human Feedback) and safety evaluations
  • Orchestrating MLOps, toolchains, and governance protocols to ensure scale and compliance

Powering intelligent automation, AI products, and business-critical applications.

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METHODOLOGY

The Burtch Works 2025 AI & Data Science Compensation Report analyzed a sample of 866 professionals across a 12-month cycle:

  • 724 Data Scientists
  • 162 AI Professionals

All respondents were segmented using the same rigorous criteria we’ve applied in previous years—ensuring comparability, credibility, and continuity for decision-makers.

Role Classifications By Mission, Deliverables, & Data Modality.
‍
Individual Contributors | IC

IC-1
0-3
Years Of Experience
Learning on the job, hands on analytics and modeling.
IC-2
4-8
Years Of Experience
Hands On. Advanced problems, may help training team members.
IC-3
9+
Years Of Experience
Analytics SME’s. Mentors and trains team members

Managers | MG

MG-1
1-3 Reports
Direct or Matrixed
  • Tactical.
  • Leads a small team w/in a function.
  • Project execution.
MG-2
4-15 Reports
Direct or Matrixed
  • Leads a function.
  • Moderate team size.
  • Executes strategy.
MG-3
15+ Reports
Direct or Matrixed
  • Senior/Excutive.
  • Manages a large team.
  • Determines strategy.

2025 Mean Base Salaries

Compared to 2024, scarcity shifted to production reliability. Employers value Applied LLM Engineering, Retrieval/Data Quality, Evaluation & Safety, and Model Governance — the mix that makes AI shippable and auditable at scale.  Skills that ship win offers.
‍
Credential mix moved up-market. Masters-level talent is now the majority in both AI and Data Science; Bachelor’s share fell—especially in AI—tightening supply for production-ready IC-1/IC-2 roles.

Comparison of Data Science Mean Base Salaries: 2024 vs. 2025

Broad, statistically significant base-pay gains at IC-1/2 and MG-1/2. Top-tier management is increased but remains below the 5% threshold.

Comparison of AI Professionals Mean Base Salaries: 2024 vs. 2025

There were no significant changes with the 5% tolerance cut. Encouragingly, IC-1 is up, while mid/senior and manager moves are directionally mixed and fall short of convincing.

Data Science: IC-1

Data Science: IC-2

Data Science: IC-3

Data Science: MG-1

Data Science: MG-2

Data Science: MG-3

AI: IC-1

AI: IC-2

AI: IC-3

AI: MG-1

AI: MG-2

AI: MG-3

2025 Compensation Strategy

Hiring activity surged in 2024 with signs of sustained growth in 2025.


AI professionals still command a 9–13% cash premium over Data Scientists. The gap is widest where scarce Gen-AI expertise adds the most value.

For hiring managers, this means publishing role-based salary ranges based on education and experience, clearly highlighting skills premiums. If you're seeking a job in AI and Data Science, quantify your Gen-AI successes to demonstrate your skills in action, reference market data during salary negotiations, and include target roles like platform ML, MLOps, or applied LLMs that impact P&L.

If you are a hiring manager or have influence over budgets related to talent acquisition, consider these points when planning your 2025 Compensation Strategy:

Win at the entry level. Elevate IC-1/IC-2 bands to market (double-digit YoY growth) and support this with mentorship and evaluation tools to accelerate ramp-up and improve retention.

Rebalance mid-level AI towards outcomes. Keep base salaries steady; shift value to bonuses and equity tied to latency, reliability (SLOs), and low cost per task—publish the scorecard and reward accordingly.

Protect Data Science leadership bands. Allocate a premium for managers who standardize governance, control expenses, and scale analytics—since replacement costs surpass potential gains.

If you would like more insights on developing a competitive compensation strategy,  connect with a Burtch Works Expert today.

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