AI hiring in start-ups: Demand surges for mid-senior talent

Jyoti Banthia Updated - March 27, 2025 at 09:11 PM.

Start-ups are competing with deep-pocketed tech giants for top-tier AI engineers, data scientists and machine learning specialists

AI hiring is heavily influenced by the rise of generative AI, automation and AI-powered software development

From fintech and healthcare to e-commerce and cybersecurity, AI-driven innovation is reshaping business landscapes. In 2025, AI hiring is heavily influenced by the rise of generative AI, automation and AI-powered software development.

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With enterprises aggressively adopting AI-first strategies, start-ups are competing with deep-pocketed tech giants for top-tier AI engineers, data scientists and machine learning specialists.

“Companies across sectors such as IT, e-commerce, automotive and healthcare have the highest number of roles needed with AI skills. Proficiency in Python, AI/ML, Data Science, Deep Learning, SQL and Software Development are much needed across these sectors,” said Neeti Sharma, CEO, TeamLease Digital.

In-demand AI roles

Start-ups are actively seeking AI talent across various domains, with a strong emphasis on AI engineering, data science and machine learning.

The skills and roles in AI are spread across engineering, data science, development, analytics, UI, component design, she said.

 “AI/ML engineers and architects are placed at one end of the skill spectrum, with AR and VR designers and engineers are on the other end, where AI-powered virtual interfaces and devices are involved,” she added.

Companies are seeking experienced candidates who can navigate complex domain and technological projects with higher efficiencies using AI tools, pointed out experts.

Demand for experienced executives has increased about 30-35 per cent year on year. Entry-level positions have also seen growth, with a reported 15-18 per cent increase in demand for roles requiring 0-3 years of experience, said Sharma of Teamlease.

Lateral talent

This rise is driven by the need for fresh talent in AI and related fields. There is an increased demand for skills in strategic leadership with AI from the senior professionals across industries. 

“Active demand for AI talent is primarily in the experienced lateral talent space, as the current focus is on AI Engineering and AI Development. Mid-senior to senior roles are among the popular ones in the funnel. The fresher demand in AI is not yet mainstream. Opportunities for entry-level talent are few and far apart, and will increase when the service and customer support end of demand picks up through enterprise AI consumption,” said Prasadh MS, Head - Workforce Research, Xpheno, a staffing firm.

Fintech, healthcare and e-commerce start-ups offer distinct compensation structures based on their growth needs, noted experts.

“Compared to traditional tech roles, AI-related roles command a premium of 40-80 per cent for core engineering roles. There are outliers in roles related to solution architect, AI modelling, prompt engineering, ML architect and others, which are high niche and can command 2-3x premium compared to traditional tech roles,” said Prasadh.

The AI hiring landscape in start-ups is evolving, with mid-senior roles leading the demand. While compensation remains a key driver, the differentiating factors for start-ups will be growth potential, innovation-driven work environments and opportunities for AI professionals to make a significant impact.

Published on March 27, 2025 14:43

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