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AI is Changing Work (and Compensation isn’t Immune)
Since 2019, our team has analyzed the changes in compensation technology and data usage along with key trends that influence the near-term and long-term view of the compensation function. In all that time, no other trend or theme has seemed to have the same degree of potential as artificial intelligence technology. The emergence of this seemingly ubiquitous solution has changed facets of life and work in ways we could have never expected, and it’s one of the big themes in this year’s research.
This is the evolution as we’ve seen it over the last few iterations of this research:
2021 → Foundation and Acceleration
Theme then: Organizational demand for compensation technology and data were on the upswing as employers struggled to compete for talent coming out of the pandemic. Recruitment and compensation were in a struggle between competitiveness, fairness, and reasonableness regarding pay. Key forces: Adoption of purpose-built compensation tools, comfort with employee-reported data, and legislative pressure on equity. Why it matters for 2025: This established the baseline — compensation became data-driven and tech-enabled, setting the stage for bigger strategic expectations.
2023 → Compensation as Strategy
Theme then: Compensation
