That AI doesn’t take your job It does not free you from suffering the consequences of its implementation. And if not, tell the Teradata employees who have seen how their salaries were frozen this year, not to balance somewhat tight accounts, but because they have decided that every available dollar should go to AI.
what has happened. They tell it in Business Insider. In January of this year, Teradata CEO Steve McMillan sent an internal message to the company’s 5,100 employees telling them that they should not expect a salary increase in 2026. Teradata’s goal for this year was to “win in the market with AI,” for which they need to increase investment in AI talent and tools.
When AI takes your paycheck. According to two employees of the company with more than ten years of service, they normally received an annual raise of between 2 and 4%, but this year they have been left without it, although they were able to receive a performance bonus and shares. This measure affects countries where regulations do not require wage adjustments linked to the market.
Teradata is not the only company that has preferred to invest in AI over people. The consultant TTEC also decided to pause its contribution to the retirement plan 401(k) because they are going to focus on AI certifications, tools and automation.
A choice, not an inevitability. Speaking to Business Insider, the labor expert Jennifer MossHe affirms that cutting employees’ pockets is not the only way out. It is true that both Teradata and TTEC have recorded revenue declines (5 and 3.2% respectively), but there are options such as resorting to external financing to pay for the investment in AI, cutting non-essential expenses or adjusting senior management compensation. It also mentions alternatives such as staggering investments in AI over time, resorting to strategic acquisitions or accepting lower margins for a limited period, instead of loading the entire cost of the transformation on salaries.
AI and augmentations. We recently talked about the logic of salary increases has been broken with the arrival of AI. Previously, raises were granted based on parameters such as experience, seniority and job category. However, in the technology sector this scale has changed and in 2026 many companies have frozen their salaries. Although AI is not directly responsible as in the case of Teradata, it has contributed to creating an elite of highly paid profiles and has amplified the gap: now the company you work for and how central AI is to its business matters more than your simple progression from junior to senior.
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Firing is expensive. Normally when we talk about the impact of AI on the labor market, we talk about layoffs. So far this year, it is estimated that 92,000 tech employees have lost their jobs with the excuse of compensating investments in AI. However, the reality is that the layoffs are costing them a fortune for compensation and exit packages. Oracle, for example, has reserved 2.1 billion to cover compensation after lay off 30,000 employees. To avoid legal disputes, giants like Microsoft or Google are betting on incentivized “voluntary layoffs”, assuming the enormous risk that their best AI talents will take the money and go to the competition.
Image | Jakub ZerdzickiUnsplash
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Xataka
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Amparo Babiloni
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