Key facts
- Teradata informed employees they will not receive annual salary raises in 2026 to fund AI investments.
- TTEC paused 401(k) matches for US employees through the end of 2026 to fund AI capabilities.
- Both Teradata and TTEC have experienced revenue declines in their latest financial years.
- Workplace strategist Jennifer Moss notes a new rhetorical shift where leaders openly name AI as the reason for cuts.
- Alphabet plans to sell $80 billion in stock to fund AI infrastructure investments.
Companies are increasingly cutting employee compensation and benefits to fund significant investments in artificial intelligence (AI). Teradata, a global cloud software company, informed its 5,100 employees in January that they should not expect an annual salary raise this year, as the budget is being reallocated toward AI investments and talent. Similarly, TTEC, a technology and services firm, has paused its 401(k) matches for US employees until the end of 2026, citing the need to fund AI capabilities. This candor in naming AI as the reason for reduced workforce investment marks a notable rhetorical shift, according to workplace strategist Jennifer Moss. Both Teradata and TTEC have faced financial difficulties, with global revenues declining in their latest financial years. While AI spending is rising across industries, with 90% of surveyed IT professionals planning to increase it in 2026, experts suggest that financing AI transformations can be achieved through various means beyond cutting worker compensation, such as debt, reallocating nonessential spending, or adjusting executive compensation. Alphabet, for instance, plans to sell $80 billion in stock to fund its AI infrastructure investments.