CEO to staff: You're not getting a raise. We're spending on AI instead

Companies like Teradata and TTEC are freezing employee salaries and cutting benefits to fund AI investments, with Teradata explicitly telling its 5,100 employees they won't receive annual raises as the budget shifts toward AI talent and technology. While 90% of IT professionals surveyed plan to increase AI spending in 2026, workplace experts note that cutting worker compensation is a strategic choice rather than a necessity, as companies could pursue alternative financing methods like taking on debt or adjusting executive pay.