AI in reward: are we ready?
02nd February 2026
Julia Hanna
Lately I’ve been thinking a lot about how AI is shaking up the world of reward, and honestly, it’s happening faster than many of us expected.
Having attended a couple of conferences recently, almost every speaker mentioned it. From where I sit, it’s already hitting us in two big ways: how we do our jobs as reward professionals, and how we reward our increasingly AI enabled workforce.
The changing reward role
AI isn’t just tweaking the edges of our work—it’s reshaping the whole thing. It’ll soon be a completely different job than it was a couple of years ago.
So, are we asking ourselves: where should I be using AI, and where am I missing opportunities?
For example, it can be used to:
- automate all those repetitive tasks, we used to spend hours on – salary survey submissions, job matching, job grading, the annual review cycle… all the admin that quietly eats our week
- continuously monitor gender, ethnicity and other pay gaps in real time, instead of waiting for the annual audit to tell us what we should’ve spotted months ago
- tailor reward packages around what people actually value – like different benefits offering based on employee group, preferences, behaviours or performance e.g. parents vs. early-career talent
- deliver real time analysis and insights on market trends, benchmarking and pay equity – maybe even predict attrition or model different reward scenarios
- spot performance and behaviours that align with our values and help personalise recognition
And then there’s the bigger question: how AI-ready are we as reward professionals:
- Are we really prepared to shift from spreadsheets to proper data-driven decision making?
- Are we ready to let go of some of the admin and spend more time on strategic thinking?
- Are we able to communicate decisions that are supported by AI in a way that feels clear—and human?
- And of course, are we making sure our AI tools are being used ethically, with proper oversight, so we don’t accidentally bake in bias?
Rewarding an AI-enabled workforce
The other side of the coin is just as interesting: how AI is changing what employees need and want from pay and benefits.
I’m already seeing signs of it – maybe you are too. For example:
- Some roles are suddenly in huge demand. AI specialists, data scientists… their market value is increasing.
- Meanwhile, jobs that revolve around routine, repetitive tasks face pressure from automation. That’s affecting job security and pay levels.
- Many roles are becoming more strategic and creative, which naturally increases their value and pay.
- Pay gaps could widen if we’re not careful—especially if high-demand technical roles pull further away from the rest.
- AI can boost productivity, and if people are doing more with less effort, we need to think: are we sharing that value through bonuses or profit-sharing?
- As repetitive tasks shrink, should workweeks get shorter? Or at least become more flexible?
- Plus, the red flags are real—AI can make it easier for organisations to slip into micro-management or surveillance. This impacts employee autonomy and wellbeing and is a fast way to kill trust.
The whole AI wave only works if people are willing, and supported, to adapt. That means asking:
- Are employees open to reshaping their roles as the technology evolves?
- Will we invest in reskilling and upskilling rather than letting people fall behind?
- Are we encouraging everyone to get comfortable with AI tools and embrace continuous learning?
No one-size-fits-all answer
The truth is, the impact of AI on reward is going to vary hugely from organisation to organisation. But from everything I’m seeing, the companies that lean in by investing in their people, building skills and embracing AI responsibly, will probably see the biggest mutual benefits.
Those that don’t may find themselves dealing with the fallout: turnover, disengagement, inequality, and a loss of trust that’s hard to rebuild.
For me, the takeaway is simple: AI is here and already transforming reward. The more intentional we are about it, the better the outcome for everyone.
How we can help
At Verditer, we are specialists in pay and reward. Contact us if you’re looking for external expertise to support the impact of AI on pay structures or pay gaps.
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