Artificial Intelligence Engineer Compensation Overview

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The salary of an AI Engineer depends significantly on factors such as years of experience, job profile, and specific skill sets. Professionals who have spent over a decade in the industry are generally regarded as having deep and comprehensive knowledge of the AI landscape. According to recent studies, AI Engineers receive a significantly higher salary hike, ranging between 60 to 80 percent, when switching jobs compared to professionals in other tech domains who typically receive a 20 to 30 percent increase. This trend highlights the increasing demand and value of AI expertise in today’s job market.

Entry-Level AI Engineer Salary

Entry-level AI Engineers can be broadly classified into two categories. The first includes fresh graduates entering the workforce directly from universities, while the second group consists of individuals who may already have experience in other technical domains but are new to Artificial Intelligence. These professionals are in the early stages of their AI career and are focused primarily on learning and developing a strong foundation in AI-related concepts and practices. Their trajectory is centered on growth, and due to the high demand for AI professionals, many organizations are also open to hiring interns for AI-related projects. This flexibility means that even newcomers to the field have significant opportunities for growth. However, it is also true that their compensation is generally lower compared to their more experienced counterparts. On average, entry-level AI Engineers in India earn approximately ₹600,000 per year. This figure may vary slightly depending on the location, company, and specific role, but it represents a typical starting point for newcomers to the field.

Mid-Level AI Engineer Salary

Mid-level AI Engineers represent a core group of professionals who have gained a considerable amount of experience and skills within the AI domain. These individuals typically have between two to eight years of experience and are valued for their versatility and expertise. They often play key roles in organizations that are actively integrating AI into their systems, products, or services. Their salary is generally higher than that of entry-level engineers, reflecting their more advanced technical abilities and greater responsibilities. Mid-level AI Engineers are often proficient in several key areas that distinguish them from beginners. These areas include computer vision, data modeling, deep learning, image processing, data analysis, and natural language processing. Because of their competence, this group is often considered the most stable and essential within AI-focused teams, and they often remain with the same employer for many years, contributing to long-term projects and strategies. According to available salary insights, AI Engineers with two to four years of experience typically earn between ₹1.5 million to ₹2 million annually. Those with four to eight years of experience may earn even more, with salaries ranging from ₹2 million to ₹5 million, depending on their specific skill sets and the complexity of their roles.

Senior-Level AI Engineer Salary

Senior-level AI Engineers are at the top of the hierarchy in terms of expertise and compensation. These professionals typically have more than eight years of experience and have mastered various aspects of Artificial Intelligence. Their responsibilities often include leading AI strategy, managing AI-driven projects, and mentoring junior team members. Senior AI Engineers are instrumental in guiding their organizations through advanced AI initiatives that require both technical depth and strategic vision. According to research, a small but significant portion of AI Engineers in India earn more than ₹5 million annually. This highlights the growing demand for highly experienced professionals in the field. Moreover, industries such as finance, healthcare, and e-commerce are witnessing exponential growth in AI applications, further driving up the salaries of skilled AI Engineers. The annual salary for senior AI Engineers with eight to fifteen years of experience typically falls between ₹5 million and ₹10 million. These figures reflect both the depth of expertise and the strategic importance of these roles within modern organizations.

AI Engineer Job Roles and Salaries

As Artificial Intelligence continues to evolve and impact various sectors, the demand for specialized AI job roles is also increasing. Companies are actively recruiting professionals for a variety of positions that require AI expertise. These roles are not limited to traditional programming or data analysis but encompass a broader range of responsibilities that contribute to the development and deployment of intelligent systems. Some of the most prominent job roles in AI include machine learning engineers, robotics scientists, data scientists, research scientists, and business intelligence developers. Each role requires a unique combination of technical knowledge, practical experience, and domain-specific insights. As a result, the salaries associated with these roles vary based on complexity and responsibility.

Machine Learning Engineer

Machine Learning Engineers are among the most sought-after professionals in the AI sector. Their work involves developing predictive models, applying algorithms, and leveraging natural language processing to interpret and process large datasets. These engineers are expected to have strong programming skills and a deep understanding of machine learning frameworks and techniques. Their ability to work with data at scale and develop intelligent systems makes them invaluable assets in many organizations. The median salary for a machine learning engineer is approximately US$121,106 per year. This figure reflects the high demand for professionals with a blend of software engineering and AI knowledge.

Robotics Scientist

Robotics Scientists are responsible for designing and programming robots for various applications, including healthcare, security, space exploration, and manufacturing. These professionals require a strong foundation in engineering and computer science. Typically, employers look for candidates with at least a bachelor’s degree in a relevant field, although advanced degrees may be preferred for more complex roles. The median salary for a robotics scientist is around US$83,241 annually. While slightly lower than that of machine learning engineers, this figure still represents a lucrative career path, particularly for those with a passion for robotics and automation.

Data Scientist

Data Scientists play a pivotal role in analyzing complex datasets and deriving actionable insights using predictive analytics and machine learning. They are proficient in programming languages such as Python, SQL, and R and are familiar with big data platforms. Data scientists not only process data but also help organizations understand patterns and trends that influence decision-making. Their expertise enables companies to optimize operations, forecast trends, and improve customer experiences. The median salary for a data scientist is approximately US$117,345 per year. This salary reflects the critical role data scientists play in harnessing the power of data within AI systems.

Research Scientist

Research Scientists in AI focus on developing new methodologies and exploring theoretical aspects of artificial intelligence. Their responsibilities include planning and conducting experiments, interpreting data, and contributing to academic and commercial AI research. These professionals often work in labs or innovation centers and are involved in projects that push the boundaries of AI technology. A strong background in mathematics, statistics, and computer science is essential for this role. The median salary for a research scientist in the AI domain is around US$83,490 per year. While this figure may vary based on the organization and research focus, it represents a stable and rewarding career for those with a deep interest in scientific exploration.

Business Intelligence Developer

Business Intelligence Developers are responsible for designing and implementing solutions that enable organizations to make data-driven decisions. They work with technologies that facilitate the collection, integration, and analysis of business data. These developers must have strong analytical skills and the ability to communicate complex insights clearly. In addition to technical knowledge, problem-solving and communication are essential traits for success in this role. The median salary for a business intelligence developer is approximately US$90,430 per year. As businesses continue to rely on data to shape their strategies, the demand for BI developers is expected to grow.

AI Developer Salary by Geography

The salary of an AI Engineer varies significantly across different countries. These differences are influenced by factors such as the availability of talent, level of AI adoption, cost of living, and organizational demand. Countries leading in AI research and implementation tend to offer higher compensation packages, especially for senior roles. Companies located in such regions are often willing to invest heavily in talent to maintain a competitive edge. As AI continues to evolve globally, professionals in this field are witnessing rising opportunities to work in various regions that offer attractive salaries and benefits.

AI Salaries in the United States

The United States remains at the forefront of AI innovation and is home to many top technology companies, research institutions, and startups. As a result, AI Engineers are among the highest-paid professionals in the tech sector. The demand for AI talent far exceeds the supply, contributing to extremely competitive salary offerings. Senior AI roles in the US command impressive compensation due to a limited pool of qualified professionals. On average, AI Engineers in the United States earn around US$314,000 annually. This figure may include bonuses, equity, and other benefits depending on the company and role. The country’s well-developed tech infrastructure and strong investment in AI research further fuel these high salary ranges.

AI Salaries in the United Kingdom

The United Kingdom has also emerged as a significant player in the AI landscape. With initiatives to support AI research and commercial adoption, the demand for AI professionals has increased substantially. The salary for AI roles in the UK depends on experience and the type of organization. Advertised AI roles offer an average salary of £60,000 per year, while top-tier positions may provide annual compensation averaging £105,500. These positions are typically found in companies that are heavily investing in AI-driven products or services, particularly in finance, healthcare, and manufacturing sectors.

AI Salaries in Canada

Canada has developed a strong AI ecosystem, particularly in cities like Toronto, Montreal, and Vancouver. The country’s academic institutions and startup culture contribute to the advancement of AI, making it a growing hub for AI innovation. AI Engineers with a few years of experience in Canada can expect salaries ranging between US$70,000 and US$90,000 per year. These numbers reflect the steady demand for AI skills and the country’s ongoing efforts to attract global talent through immigration-friendly policies and AI research funding.

AI Salaries in India

India is witnessing rapid growth in the AI sector, with organizations across domains adopting AI for automation, customer insights, fraud detection, and more. Indian AI Engineers experience steep growth in salaries as they gain experience and specialize in high-demand areas. A professional with two to four years of experience can earn between ₹1.5 million and ₹2 million annually. Those with greater experience may draw even higher compensation. India’s large pool of engineering graduates, expanding AI startups, and the increasing number of multinational companies setting up AI divisions have all contributed to the surge in demand and salary levels.

Global Demand and Talent Gaps

The global talent shortage in AI has created intense competition among countries to attract and retain top professionals. Companies are increasingly offering remote positions, relocation benefits, and equity options to bridge the gap between talent availability and demand. While the United States leads in compensation, other countries are rapidly catching up by investing in training programs, education, and AI-friendly policies. These initiatives are gradually balancing the global AI job market and giving professionals more choices in terms of where they want to live and work.

AI Engineer Salary Based on Skills and Education

The salary of an AI Engineer is also influenced by specific technical skills, educational background, and depth of domain expertise. Unlike traditional software development, Artificial Intelligence requires a unique blend of theoretical knowledge and practical experience. Advanced degrees and specialized skills can significantly increase an individual’s earning potential in the field. While many developers are self-taught in general programming, AI tends to demand more formal education due to its complex nature.

The Role of Education in AI Careers

Most roles in Artificial Intelligence require formal education in computer science, data science, or a related field. While it is possible to begin learning AI through online resources or bootcamps, a structured degree program often provides a more comprehensive understanding of core AI concepts. A report suggests that 35 percent of AI job postings require a Ph.D., and 26 percent seek candidates with a master’s degree. This trend underlines the academic rigor associated with AI roles, particularly in research, robotics, and cognitive modeling. The deeper the academic involvement, the more likely a candidate is to contribute to cutting-edge innovations.

Common Degrees Among AI Engineers

AI professionals often hold advanced degrees in computer science, machine learning, mathematics, or cognitive science. Around 81 percent of AI job applicants possess a bachelor’s degree, 46 percent have completed a master’s degree, and 20 percent hold a Ph.D. While a bachelor’s degree is sufficient for many entry-level roles, leadership and research-focused positions often require postgraduate education. Specializing in AI during one’s academic career, either through research projects or targeted coursework, further enhances job prospects.

Impact of Technical Skills on Salary

An AI Engineer’s technical toolkit plays a critical role in determining their salary. Proficiency in programming languages like Python, Java, R, and C++ is essential. However, Python remains the most preferred due to its vast libraries and ease of use in machine learning applications. Knowledge in linear algebra, calculus, probability, and statistics is also crucial for designing AI algorithms. Additional skills such as deep learning, computer vision, natural language processing, data mining, and graphical modeling can significantly boost an AI professional’s value. Employers also favor candidates who are familiar with frameworks like TensorFlow, Keras, and PyTorch, as well as big data platforms such as Hadoop and Spark.

Cognitive and Analytical Skills

In addition to technical know-how, cognitive and analytical skills are critical in the AI domain. Understanding how human cognition works, and translating that into algorithms, requires a multidisciplinary approach. Professionals trained in cognitive science and neuro-symbolic reasoning often stand out in roles involving natural language understanding and behavior modeling. The ability to analyze problems, communicate findings, and work in collaborative environments adds further value, making such candidates eligible for higher salaries and leadership roles.

Salary Gap Between Skilled and Less-Skilled Professionals

The salary difference between highly skilled AI professionals and those with basic programming knowledge is substantial. An entry-level developer who knows how to write simple code may earn up to ₹600,000 annually. In contrast, an experienced AI Engineer with expertise in data science, advanced analytics, and algorithm design can command salaries as high as ₹5 million per year or more. This gap reflects the complexity of AI and the premium placed on individuals who can contribute to its strategic implementation within organizations.

Top Companies Hiring AI Engineers

As Artificial Intelligence becomes central to business strategy, companies across various industries are investing in skilled AI professionals to gain a competitive edge. While some organizations are still in the early phases of AI adoption, others are fully integrating AI into their systems, creating high-paying roles for engineers and researchers. The companies offering the highest compensation tend to be those that recognize the transformative power of AI and are committed to using it at scale across their operations.

AI Hiring Trends in India

India is fast becoming a global hub for Artificial Intelligence, with both domestic and international companies setting up AI divisions. In India, leading information technology services firms, financial institutions, healthcare providers, and e-commerce platforms are actively hiring AI talent. These companies are moving beyond small-scale pilot projects and are now working on deploying large, end-to-end AI solutions. As a result, demand for AI Engineers has risen, particularly for professionals who bring a combination of theoretical knowledge and real-world implementation experience.

Firms in India are offering competitive salaries to attract top-tier AI talent. Professionals who specialize in machine learning, deep learning, and data science are particularly valued. Additionally, companies are building AI labs, investing in internal training programs, and collaborating with educational institutions to ensure a steady supply of qualified engineers.

AI Hiring Trends in the United States

The United States continues to lead in AI innovation and adoption. Most of the world’s top AI companies are based in the US, including major players in technology, finance, retail, and healthcare. These companies are constantly in search of professionals who can build scalable AI systems, automate processes, and extract insights from large volumes of data. The high level of investment in research and development contributes to the constant creation of new AI roles.

In the US, AI professionals are often offered salaries that include not just base pay but also bonuses, stock options, and other incentives. Organizations place a high emphasis on both educational qualifications and hands-on experience, making advanced degrees and industry certifications highly valuable. Professionals who demonstrate thought leadership or contribute to open-source AI projects are often sought after by top firms.

Desired Skills and Capabilities in AI Engineers

The hiring process for AI Engineers involves more than just assessing technical knowledge. Companies are looking for professionals who can innovate, adapt to changing technologies, and contribute to cross-functional teams. While programming proficiency is fundamental, the ability to apply AI to real-world problems and drive measurable outcomes is equally important.

Core Technical Skills

AI Engineers must possess strong programming skills in languages like Python, Java, or R. Python, in particular, is favored for its versatility and the wide array of libraries such as TensorFlow, Scikit-learn, and PyTorch. Knowledge of mathematics, particularly linear algebra, calculus, and probability, is essential for understanding and implementing machine learning models. Engineers must also be skilled in statistics to interpret data and validate model accuracy.

Data Handling and Modeling Skills

Professionals must be comfortable working with large datasets, including data cleaning, transformation, and storage. Familiarity with tools like SQL, Apache Spark, Hadoop, and NoSQL databases is a major advantage. Data modeling skills are also critical, allowing engineers to build representations of real-world processes for prediction and classification tasks.

Machine Learning and Deep Learning

Machine learning forms the foundation of most AI systems. Engineers must understand supervised, unsupervised, and reinforcement learning methods. Additionally, knowledge of deep learning—using neural networks to process unstructured data such as images and text—is in high demand. Experience with convolutional and recurrent neural networks gives engineers an edge in areas like computer vision and natural language processing.

Cognitive Computing and NLP

Cognitive computing is a subset of AI that attempts to mimic human reasoning and problem-solving abilities. Engineers working in this space must understand natural language processing, sentiment analysis, and speech recognition. These skills are critical for building chatbots, voice assistants, and AI-powered recommendation systems.

Interdisciplinary Knowledge

AI is not limited to the domain of computer science. Engineers who have additional knowledge in areas like robotics, biotechnology, physics, or linguistics can apply AI in more specialized contexts. For example, an engineer with a background in biology may contribute to the development of AI-driven diagnostics in healthcare. This interdisciplinary capability often leads to higher compensation and more strategic roles within organizations.

Soft Skills and Professional Attributes

In addition to technical skills, employers also look for strong communication and collaboration abilities. AI projects often require engineers to work closely with product managers, designers, and non-technical stakeholders. The ability to explain complex algorithms in simple terms and align AI strategies with business goals is highly valued. Project management skills, adaptability, and a continuous learning mindset are also important attributes.

Certification and Continuous Learning

While degrees provide foundational knowledge, certifications help professionals keep up with the latest trends and technologies in AI. Certifications in big data, machine learning, and cloud-based AI platforms add significant value to an engineer’s profile. Employers also favor candidates who regularly attend AI workshops, contribute to research, or participate in AI competitions. These efforts demonstrate a commitment to professional development and a willingness to innovate.

Specialization and Career Growth in AI

AI offers multiple pathways for specialization, each with distinct career prospects and salary trajectories. Professionals can choose to specialize in areas like computer vision, natural language processing, robotics, or AI ethics and policy. As organizations build AI into their core infrastructure, the need for specialized roles has become more pronounced.

Computer Vision

Computer vision specialists work on enabling machines to interpret visual information from the world. Applications include facial recognition, object detection, and medical imaging analysis. These specialists are often employed in fields like autonomous vehicles, security systems, and augmented reality. Their deep knowledge of image processing and neural networks often commands premium salaries.

Natural Language Processing

NLP specialists design systems that understand and generate human language. Applications include voice assistants, sentiment analysis tools, and real-time translation services. Professionals in this field must combine linguistic knowledge with machine learning expertise. The demand for NLP experts has grown with the expansion of voice interfaces and AI-driven content analysis tools.

Robotics and Autonomous Systems

Professionals in this area focus on building intelligent machines that can perform physical tasks in dynamic environments. Applications include industrial automation, logistics, space exploration, and military systems. Robotics engineers often work at the intersection of mechanical design, sensor integration, and real-time AI algorithms.

AI Strategy and Ethics

As AI becomes more influential, there is a growing need for professionals who understand the ethical implications and societal impact of intelligent systems. These roles involve defining AI policies, ensuring data privacy, and preventing algorithmic bias. Individuals with a background in law, philosophy, or public policy, combined with technical understanding, are well-positioned for these emerging roles.

Opportunities in Startups and Large Enterprises

AI professionals have the option to work in both startups and large enterprises, each offering unique advantages. Startups offer more autonomy and the chance to work on innovative projects from scratch. Engineers in startups often wear multiple hats, gaining exposure to diverse tasks. This environment fosters rapid learning and can lead to early leadership roles.

In contrast, large enterprises provide structure, access to high-end tools, and opportunities to work on projects at scale. These organizations often have dedicated AI teams and research labs. Professionals in such environments can benefit from stability, mentorship, and long-term career planning. The choice between the two depends on the individual’s career goals, risk tolerance, and preferred working style.

Future Scope and Trends in AI Engineering Salaries

As the role of Artificial Intelligence expands across industries, the future for AI Engineers looks promising not only in terms of job availability but also in terms of salary growth. The demand for AI professionals is being driven by rapid digital transformation, increasing reliance on automation, and the growing need for predictive analytics. Companies are now prioritizing long-term investments in AI infrastructure, which will significantly impact salary trends and the scope of career development in the coming years.

Rise of Specialized AI Roles

Organizations are gradually moving away from hiring generalist software engineers and are increasingly looking for specialized AI professionals. These include roles such as reinforcement learning engineers, AI product managers, edge AI engineers, AI security experts, and ethical AI advisors. Each of these roles addresses a unique aspect of the AI lifecycle and comes with its own set of skill requirements and compensation brackets. As these roles become more mainstream, the average salary of an AI Engineer is expected to increase across all experience levels.

AI Across Industries

Artificial Intelligence is no longer confined to the technology sector. It is now being deployed in finance, healthcare, manufacturing, logistics, education, agriculture, and even the public sector. This cross-industry adoption means that AI Engineers can choose from a wide range of career paths and apply their expertise in diverse domains. For example, AI in healthcare is being used for diagnostics, drug discovery, and personalized treatment plans, all of which require specialized knowledge in both AI and medical science. Similarly, in finance, AI is used for fraud detection, risk assessment, and algorithmic trading. These industry-specific applications offer higher salaries for professionals who can bring in domain-specific insights in addition to core AI skills.

Demand in Finance and Healthcare

Among all industries, finance and healthcare are experiencing the most significant surge in AI adoption. In finance, the use of AI to streamline operations, reduce fraud, and enhance customer experience has led to a sharp rise in hiring AI professionals. Healthcare has similarly seen a boom in AI-powered applications, especially in areas such as radiology, genomics, and medical imaging. Because of the critical nature of these fields, organizations are willing to pay a premium to experienced AI professionals who can help them innovate safely and effectively. This trend is likely to continue, with salaries in these sectors remaining higher than average.

Government and Public Sector Opportunities

Governments across the globe are investing in AI to improve public services, defense, urban planning, and cybersecurity. AI Engineers working in the public sector may not always receive the highest salaries compared to those in the private sector, but they benefit from job security, long-term projects, and the opportunity to contribute to national priorities. As public institutions continue to digitize, more roles for AI Engineers will emerge, offering alternative career options beyond commercial enterprises.

Globalization and Remote Work

The shift towards remote work has had a significant impact on the AI job market. AI Engineers are no longer limited to jobs in their local geography. Organizations are now hiring talent from around the world, creating a global marketplace for AI professionals. This globalization means that engineers in countries with lower costs of living may still command high salaries by working for companies based in regions that traditionally offer higher compensation. Remote work has also led to increased competition, pushing engineers to constantly update their skills and differentiate themselves in a crowded job market.

Startups and Innovation-Driven Enterprises

Startups continue to be fertile ground for AI innovation. Unlike larger organizations that may have well-defined AI strategies, startups provide opportunities to work on cutting-edge technologies with a more hands-on and flexible approach. AI Engineers in startups may not always receive high base salaries, but they often receive stock options and opportunities to lead innovation from the ground up. Startups also encourage rapid experimentation, offering professionals a chance to build unique solutions that may later scale across industries. For those looking for dynamic roles and fast growth, the startup ecosystem remains an attractive option.

Role of Research and Academic Contributions

Academic research remains a critical driver of AI advancement. Engineers involved in AI research help shape the future of the field by developing new algorithms, publishing studies, and contributing to open-source projects. Many leading AI professionals hold dual roles in academia and industry. These professionals often command higher salaries due to their deep expertise and influence on industry standards. Institutions and research labs often collaborate with corporate entities, allowing researchers to apply their findings in real-world applications. For professionals passionate about discovery and innovation, the research track offers both intellectual satisfaction and financial rewards.

Certification and Upskilling for Salary Growth

Ongoing learning and certification have become essential for staying relevant in the AI field. As technology evolves rapidly, professionals must continuously adapt to new tools, frameworks, and methodologies. Certification programs in machine learning, data science, cloud computing, and neural networks are widely recognized by employers and often lead to better job opportunities and salary increases. Upskilling in niche areas like AI for robotics, edge AI, explainable AI, and quantum computing can further set professionals apart in a competitive job market. Employers favor candidates who show initiative in learning and staying up to date with emerging trends.

Leadership and Managerial Roles in AI

As AI teams grow, there is increasing demand for experienced professionals who can lead projects and manage AI teams. AI project managers, AI product managers, and directors of AI strategy are becoming prominent roles that require a blend of technical knowledge, strategic thinking, and leadership skills. These roles are often responsible for aligning AI initiatives with business goals, allocating resources, and ensuring ethical and regulatory compliance. Because of the impact and complexity of these positions, they offer some of the highest salaries in the AI domain. Engineers aspiring to transition into leadership can benefit from training in project management, business strategy, and communication.

Challenges and Considerations in AI Careers

Despite the growth and high salaries, a career in AI comes with its own set of challenges. The field is highly dynamic, requiring constant learning and adaptation. The complexity of AI systems demands strong problem-solving abilities and resilience in the face of failure. Additionally, AI professionals must be aware of the ethical implications of their work, including issues related to bias, transparency, and accountability. While AI has the potential to transform industries, it also brings responsibility, especially when applied in areas that affect people’s lives directly. Professionals who are thoughtful and ethical in their approach are more likely to build sustainable and impactful careers.

The Long-Term Outlook for AI Engineers

The long-term outlook for AI Engineers is highly positive. As AI continues to permeate every aspect of life and work, professionals with the right mix of education, skills, and experience will remain in high demand. Salary trends are expected to rise steadily, with more specialization and leadership roles emerging over time. With governments, corporations, and academic institutions all investing heavily in AI, the field offers stability, intellectual engagement, and financial rewards. The key to long-term success lies in staying current, being adaptable, and continuously contributing value in innovative and ethical ways.

Conclusion

Artificial Intelligence has moved from being a futuristic concept to a mainstream technology that powers decision-making, enhances productivity, and drives innovation. As organizations race to leverage AI for competitive advantage, the value of skilled AI Engineers has grown dramatically. From entry-level positions to senior leadership roles, the salary landscape reflects the increasing importance of AI across sectors. Educational background, technical proficiency, and the ability to apply AI in real-world contexts remain the most influential factors in determining compensation. As new roles emerge and industries evolve, AI professionals who invest in their growth and align with emerging trends will find themselves at the forefront of one of the most rewarding careers of the digital age.