What happened
Companies are integrating AI proficiency into employee appraisals, promotions, and salary growth, shifting performance evaluation from effort to output. The EY Work Reimagined Survey 2025 indicates 86% of Indian employees report generative AI improved productivity, with 75% noting enhanced decision-making and 62% regularly using AI tools. Shantanu Rooj, Founder and CEO of TeamLease Edtech, states organisations reward employees who effectively use AI, driving promotions and increments for AI-skilled individuals.
Why it matters
Employee compensation and career progression now hinge on AI fluency, creating a direct link between AI adoption and financial outcomes. This mechanism redefines productivity metrics, shifting focus from effort to intelligent AI application, impacting how procurement teams evaluate software ROI and how HR architects design performance frameworks. The emerging skill premium and experience compression mean younger professionals with AI capabilities can negotiate stronger roles, challenging traditional tenure-based career paths. This follows concerns about workers fearing AI skill erosion, now showing a clear path for those who adapt.
