AI founders earn higher salaries despite industry downturn

A new report by Pilot highlights that, despite a general downturn in startup founder salaries, those leading artificial intelligence companies are earning more than their counterparts in other sectors.

Pilot's 2025 Founder Salary Report collected data from 1,844 startup founders and revealed that AI entrepreneurs have managed to secure a median salary of USD $90,000. This is 20% higher than the industry average, even as overall founder compensation saw a 43% decrease from USD $132,000 to USD $75,000 year-over-year.

This trend comes amid a significant growth in the number of AI-focused startups, which has increased sharply from 14% in 2024 to 40% in 2025. This signifies a noticeable shift in where entrepreneurs are directing their efforts, with many viewing AI as offering better opportunities.

The report highlights a rise in founders earning less than USD $100,000 annually, which jumped from 37% to 60% within a year. Despite this overarching trend towards financial prudence, AI founders stand out with their comparatively higher earnings.

The data showcases that founders of AI Big Data companies command a median salary of USD $150,000, while AI Software and AI Industrials and Manufacturing founders earn median salaries of USD $100,000 and USD $111,250, respectively.

Several factors contribute to the higher compensation for AI founders. Many come from well-paying technical roles in established companies, and their specialised skills in machine learning and data science are in high demand, justifying the premium salaries even for early-stage ventures.

Despite an overall decline in funding—with median figures dropping from USD $4 million to USD $500,000—AI companies have shown resilience in capital acquisition, especially for niche applications.

Geographical disparities in AI founder salaries also emerged, with the San Francisco Bay Area, Boston, and New York registering the highest medians at USD $135,000, USD $150,000, and USD $138,000, respectively. This represents significant variations from regional norms, particularly in San Francisco, where the general founder median is USD $103,000.

According to the report, the inherent advantages in AI business models may partly explain the higher salaries. These include quicker time-to-revenue, limited need for large teams, and the ability to showcase value through pilot projects before committing to major engineering expenses.

The research also noted that AI founders overseeing larger teams enjoy comparatively higher salaries. Those with 26 or more employees earned a median of USD $150,000, contrasted with USD $119,500 for the same team size in the wider founder community.

Compensation for AI founders advances with company growth. Founders in "growth mode" register median salaries 25% above those in earlier stages, reflecting that as AI ventures gain traction, founder earnings tend to rise faster than in other sectors.

Despite the relatively high earnings, Pilot's report indicates a common tendency across all sectors where founder salaries stabilise after companies surpass the 11-25 employee mark. AI founders experience similar trends, achieving a median of USD $100,000 at this juncture, higher than the sector-wide USD $55,000 starting baseline.

B2B AI founders tend to earn more, with median salaries of USD $120,000, compared to USD $95,333 for B2C counterparts. This mirrors the broader tendency for B2B entrepreneurs to command higher pay due to reliable revenue streams and shorter sales cycles.

Specialized AI sectors such as industrial, healthcare, and financial services report the highest founder salaries, while consumer-facing and marketing AI applications fall below these levels despite exceeding the overall industry average.

The Pilot report suggests that the AI salary premium may indicate a long-term transformation in founder economics. As AI tools become more widely adopted across industries, distinctions between "AI companies" and "companies utilising AI" are expected to blur, potentially enhancing founder compensation across the board.

While AI founders are among the best-compensated, Pilot's findings emphasise that salary decisions are largely determined by the business's financial capacity. This focus on capital efficiency is a priority, with 31% of founders across various industries highlighting affordability as their primary consideration for setting salaries. AI founders, despite higher pay, also align personal financial goals with the need for business sustainability.