The word Artificial intelligence (AI) was first coined in the 1960s. But most of us heard about it after ChatGPT, the birth of Gen AI in the real world. Who cares until it is ready to take my job, anyway?

Since then, almost every other startup in all the valleys has used AI in its messaging to lure customers or VCs.

Now, when there is a serious race to be the first, you will need the right engine that can effectively fuel your racing journey with good mileage.India became the world’s largest engine manufacturer. Satya Nadella, CEO of Microsoft, recently said in an interview that by 2027, India will surpass the US with the highest number of AI talent. We have experienced AI engineers market.

Companies seeking to stay competitive want to weigh the costs and benefits of hiring experienced AI engineers either locally in the USA or offshore in regions like India.In this article, we will compare all the ifs and buts of hiring Top AI engineers (assuming they have 4+ years of experience) – their salaries, hidden costs, quality, retention rate, and long-term implications to help businesses make informed decisions.

AI Engineer Salary Comparison: USA vs. India (For 4+ Years of Experience)

  • USA: The average salary of AI engineers with 4+ years of experience is between $150,000 and $200,000 per year. Most of them belong to tech hubs like San Francisco or Seattle and command higher compensation, particularly if they have niche expertise or are working at a senior level. The competitive market for experienced AI professionals drives these figures upwards, with specialized engineers often earning over $200,000 in senior roles. They have good leadership skills and a hunger for innovation, making them competitive in the market.
  • India: For the same level of experience (4+ years), AI engineers in India typically earn between $60,000 and $80,000 per year. Even senior AI engineers in India rarely exceed the $100,000 mark, making it a highly cost-effective option for companies. In fact, big giants and deep-tech startups are looking to India to hire skilled AI professionals for remote work. We recently closed 10+ senior AI engineer roles for 2 US enterprises.


The best way to understand this is through this video, in which we analyzed why hiring tech talent from India is better.

 

By hiring AI engineers from India, companies can save up to 70% in salary expenses while still securing top-tier, experienced talent.

The Total Cost of Hiring an AI Engineer in USA – Current Scenario

Total cost of hiring a software developer

The above costs are calculated based on the time recruiters and developers took multiplied by the average cost per hour.

In addition to the hiring cost, the average salary per year of a software developer in the U.S. includes: 

  • Mandatory benefits required by law (7.6% of average salary) equal $9,723.80
  • Insurance benefits (7.8%) equal $9,979.70
  • Paid leaves constitute 7.4% (or $9,468)
  • Savings and retirement encompass 3.5%, which amounts to $4,478
  • Additional compensation for premium and overtime equals 3.3% or $4,222.20

By considering the average annual salary for software developers at $127,946 and adding the aforementioned employer costs, the total employer expenses for hiring a software developer reach $165,817.7 per year. (This does not include the recruitment costs mentioned above.)

The salary of AI engineers in India is low compared to that in the USA, and with platforms like Supersourcing, it becomes super easy for businesses to reduce their recruitment costs by up to 50 -80% and get a pre-vetted pool of AI engineers faster.

In addition to lower salaries, hiring in India offers substantial savings in recruitment, onboarding, and employee benefits.

Quality of AI Engineers (Talent and Experience): USA vs. India

While cost is a key factor, the quality of AI engineers and AI engineer’s experience levels are equally critical to finding the right match.

1. USA: High Demand for AI Talent

In the USA, the demand for AI engineers is extremely high, especially for those with 4+ years of experience. This demand leads to fierce competition among employers. While the USA certainly offers access to world-class AI talent, smaller companies may struggle to compete with tech giants like Google, Amazon, or Facebook when trying to attract top engineers.

2. India: Growing Pool of Experienced AI Engineers

India has become a global leader in AI talent. The country has a growing pool of AI engineers with 4+ years of experience in technologies like machine learning, natural language processing (NLP), computer vision, and deep learning. Many Indian AI engineers have experience working with global companies, making them an excellent fit for businesses looking to scale AI projects without compromising quality.

We ensure that lower costs don’t affect the quality of AI engineers. So, our experts at Supersourcing find the perfect matches from the top AI engineering talent in India and sincerely vet each candidate on technical and behavioral grounds, making it easier for companies to find experienced professionals who have worked on complex AI solutions for international clients. You can check our vetting process here.

Time Zone and Communication Considerations

One common concern when outsourcing to India is the time zone difference. Let’s explore how companies can manage this issue effectively.

  • Overlap Hours: Many companies schedule overlap hours where both US-based and India-based teams can collaborate. This ensures real-time communication for critical tasks.
  • Flexible Schedules: Top AI engineering talent in India often adjust their working hours to ensure alignment with US time zones. This makes it easy for teams to collaborate without delays.
  • Communication Tools: Modern communication platforms like Slack, Zoom, and Microsoft Teams enable seamless collaboration regardless of location. These tools allow for effective management of time zone differences without impacting productivity.

Time zone differences can be managed effectively through overlap hours, flexible schedules, and modern communication tools, allowing companies to maintain productivity while hiring overseas.

Retention Rate for AI Engineers and Long-Term Costs

Hiring costs don’t stop at recruitment. Retention is a major factor that impacts long-term costs, especially when retaining senior AI talent.

  • USA: The average tenure of AI engineers in the USA is relatively short, with many engineers switching jobs every 1-2 years. This frequent turnover can lead to re-hiring and re-training costs, adding to the overall expense of hiring senior AI talent.
  • India: The Quality and Retention of AI Engineers in India are pretty stable. The retention rates in India tend to be higher, especially for senior engineers who are offered competitive salaries, opportunities for career growth, and a positive work environment. Additionally, platforms like Supersourcing offer a replacement guarantee if an AI engineer leaves in the middle of a project, ensuring continuity and minimizing disruptions.

With better retention rates and guarantees from platforms like Supersourcing, hiring senior AI engineers in India offers long-term cost savings.

Which Is the Better Option?

It still depends on a lot of other factors that are unique for each company.

Finding the right talent is more than a task—it’s a pivotal moment that can set the course for innovation and growth in your organization. 

You only have a competitive edge if you’re fast. You lose market share if you roll out updates, products, or features slower than the competition.

Missing the right opportunities are not mere setbacks; they’re a loss of potential that resonates throughout the business. 

We at Supersourcing help businesses transform the tech hiring journey into a streamlined and empowering experience, prioritizing skill and culture fit over conventional recruitment hurdles. 

We’re not just providing a solution to the problem but partnering with you to build a future where tech hiring will not be a roadblock to creating the best AI products.