AI & Data Science Salaries in the UK...Are You Paying Competitively?

With AI and data science driving business transformation, competition for top talent remains fierce. Companies that fail to offer competitive salaries risk losing skilled professionals to competitors willing to pay more. In this report, we analyse the latest AI and data science salary trends in the UK with regional variations. We also provide strategies to ensure you remain competitive in attracting and retaining top talent.

Here are the key takeaways based on conversations with employers and candidates in this field.

1. Rising salaries due to high demand

AI and machine learning engineers continue to command high salaries as organisations prioritise AI-driven innovation. On top of this, the numbers of qualified and experienced professionals are still not quite there compared to the range of opportunities available, so companies are competing for the best.

LinkedIn reports a 37% increase over the last year in professionals with the job title Artificial Intelligence Engineer or Generative AI Engineer. After London the next largest cohort of talent sits in the Manchester area.

Salaries for AI specialists have increased by 15-20% over the past two years.

How to stay competitive:
Regularly benchmark salaries to stay competitive and offer performance-based incentives or share options.

2. Regional salary variations

London provides the highest salaries, with AI engineers earning an average of £99,000 - £160,000 annually.

Midlands also provide competitive salaries, typically ranging between £105,000 - £115,000.

North of England & Scotland still command high salaries ranging from £92,000 – £98,000.

To remain competitive and to gain access to the main cohorts of talent, consider remote or flexible working models.

3. The Importance of Non-Monetary Benefits

Salary is important, but career growth, flexibility and learning opportunities also influence job decisions. Another key area is to ensure you have a robust data strategy and governance framework, as the solidity of these often dictate the success of the AI initiative. Candidates know this, often moving on due to the lack of one or both in their existing employer.

Companies with robust learning & development programmes retain employees longer.

Remain competitive by showcasing data and AI initiatives, talking a strong game around the frameworks and environment someone would be working within and offering strong upskilling initiatives, mentorship programmes (if appropriate for role and possibility) and flexible work arrangements.

4. Competitive Compensation Strategies for AI Talent

Equity & profit-sharing is increasingly attractive.

Performance-based incentives help retain top talent.

Comprehensive benefits are expected. Health, wellness and work-life balance incentives matter more than ever.

Think beyond base salaries and ensure total compensation aligns with UK industry benchmarks and employee expectations.

Exclusive Insights - what AI Leaders are saying

1. Skills in High Demand

According to LinkedIn, the fastest growing skills lie within multivariate statistics and AI leaders are emphasising the growing need for specialists in LLM, Gen AI, Support Vector Machine and AI ethics.

Demand for professionals with MLOps and data engineering expertise is increasing.

2. Salary expectations vs reality

AI Leaders feel many AI professionals expect salaries above market rates, leading to mismatches when hiring.

Salary transparency and clear career progression paths are key to managing expectations.

Be upfront about salaries but align salary offers with market realities while offering clear growth opportunities.

3. The Role of Workplace Culture

AI leaders stress the importance of collaborative and research-driven cultures.

Bear in mind that flexibility in work arrangements can be a major deciding factor for job seekers.

A strong workplace culture can be a key differentiator in talent retention.

By combining competitive pay with career growth opportunities and work flexibility, organisations can attract and retain top AI and data science professionals in 2025 and beyond.