Corporate assessments of artificial intelligence (AI) capabilities are quickly becoming HR criteria that directly affect promotions and salaries.
On May 19, TechRadar reported that a new survey by HR company HiBob found 63% of UK companies factor AI skills into promotion decisions, and 61% include them in regular performance reviews.
The link to compensation is also becoming clearer. Some 31% of respondents said they directly reflect AI proficiency in decisions on annual pay. That means AI capability is shifting from a nice-to-have to a core requirement across hiring, evaluation and compensation.
Companies are also raising their standards for AI capability. It is no longer enough to be able to use generative AI tools. It is becoming more important to apply them responsibly, efficiently and consistently to work. Safety, governance and ethics were singled out as the hardest capabilities to secure. Some 41% said hiring talent in that area is the most difficult.
That demand is not limited to technical roles. Some 77% said that within the next 2 years, mid-level AI proficiency will become a basic requirement across jobs, including non-technical roles. As a result, AI skills are spreading beyond software developers to HR, marketing, sales, operations and administrative functions.
A wage premium also emerged. Some 97% said they are willing to pay higher salaries to people with in-demand AI skills. Of those, 43% said they could offer a 10 percent premium for expertise in AI safety, ethics and governance. The survey also cited higher compensation for those who can evaluate and improve AI outputs and those with automation and technology integration capabilities.
Companies are also moving to retrain staff, not just recruit talent. Some 82% said they are investing in AI upskilling or retraining programmes. The most commonly used methods were subsidised learning programmes and separately guaranteed time for AI experimentation and practice, at 33% each. Some 99% also acknowledged the importance of peer coaching and knowledge sharing.
Some also pointed to the level of manager support as the key to execution on the ground. Ken Matos (켄 마토스), head of insights at HiBob, said the next phase of AI adoption depends on how well companies support managers. He said managers must be able to turn AI from a simple tool into a consistent way of working.
Companies also reported benefits from their investments. Respondents cited improved quality and accuracy at 32%, compliance and reduced risk at 29%, time savings at 25% and cost savings at 25% as the effects of adopting AI. Matos said companies' challenge is to turn those expectations into actual systems. He said they need to define what strong AI capability is, reflect it in roles and performance reviews, and enable managers to assess and develop it.
The survey was conducted mainly among white-collar roles. Even so, the results show AI capability is shifting from an optional choice for certain departments to an organisation-wide HR standard. As promotion and compensation systems are reshaped around AI proficiency, employees face demands to strengthen skills while companies are required to refine evaluation criteria at the same time.