Teradata and TTEC cut employee raises and benefits to fund AI investments, as more than half of surveyed business leaders plan to redirect compensation spending toward AI technology.

In January, Teradata told its 5,100 employees there would be no annual salary raises in 2026, redirecting the typical 2% to 4% raises toward AI investments. In April, TTEC paused 401(k) matches for its 15,000 U.S.-based employees until the end of 2026 to fund AI certifications, training, and AI-enabled tools.

A Resume Builder survey of 866 business leaders found that more than half plan to cut employee compensation—including bonuses, equity awards, and raises—to invest in AI technology. Global AI spending is expected to reach $2.53 trillion in 2026 and $3.34 trillion in 2027, according to Gartner.

Employment experts warn that cutting raises without clear communication could drive high-performing employees to seek better compensation elsewhere. Stacie Haller, chief career advisor at Resume Builder, stated that companies "have really no idea what they're going to need in a workforce afterwards" once AI implementations are complete.