China's AI Sector Overtakes Finance as Highest Paying Industry

China’s AI Sector Overtakes Finance as the Highest Paying Industry

In a surprising turn of events, China’s rapidly expanding artificial intelligence (AI) sector has surpassed finance to become the highest paying industry in the country. This shift in the salary rankings for the second quarter of 2024 can be attributed to Beijing’s focus on achieving self-sufficiency in technology and the global popularity of the AI industry.

The demand for AI applications has skyrocketed as businesses rush to develop and test new technologies. As a result, the average monthly pay for jobs in the AI sector grew by 5.3% to 13,594 yuan (US$1,868) compared to the previous year. This growth outpaced the traditionally high-paying jobs offered by banks, funds, and brokerages.

This changing landscape reflects not only a shift in national priorities but also in the job market. While the financial sector in China has experienced widespread pay cuts and retraction of bonuses, the tech industry, particularly AI, is quickly becoming a popular choice for job seekers.

Beijing has invested significant resources to enhance its tech capacity, diverting capital from the financial sector. This investment aims to upgrade manufacturing capabilities and overcome the barriers to tech and trade development imposed by Western countries. As a result, industries related to tech, particularly AI, are now offering higher pay.

In the second quarter, new recruits in the AI field topped the pay chart with an average monthly income of 13,594 yuan. Financial institutions offered wages ranging from 12,178 to 13,169 yuan, higher than the average income of all new jobs which stood at 10,313 yuan. However, the allure of AI roles is overpowering the appeal of financial jobs.

Within the AI industry, AI engineers command the highest salaries, earning an average monthly pay of over 22,000 yuan. This places them at the top of the sub-chart ranking the 20 best-paid jobs in the second quarter, comfortably surpassing finance jobs. Chip engineers also enjoy high pay, with an average monthly income of 21,124 yuan during the same period.

“The AI industry is a hotly contested new tech frontier globally, with great potential to spawn new business models and revenue streams. Numerous companies are competing for high-caliber talent with high salaries on offer,” said Zhilian Zhaopin, an online recruitment platform.

Recruitment in the AI sector is characterized by the need for high technology skills, extensive education, experience, and as a result, high salaries. Positions in algorithms, C programming language, embedded software development, and machine vision command particularly high pay.

Conversely, it seems that the era of high-paying jobs in the Chinese financial sector is slowing down as Beijing’s overhaul of the industry gains momentum. Pay cuts have been reported across state-owned banks and investment banks. However, even with these cutbacks, financial sector jobs still offer competitive salaries compared to most industries.

The quarterly report by Zhilian Zhaopin is based on interviews with more than 1,000 companies in 38 cities across China. This is the first time that AI has been categorized separately, previously being lumped in with technology and semiconductors.

As China continues to prioritize technological advancement and self-sufficiency, it is not surprising to see the AI sector taking center stage in terms of salary rankings. With the potential to revolutionize numerous industries and create new revenue streams, the demand for AI talent will only continue to rise, and with it, the salaries.