The rise of artificial intelligence is driving demand for roles that didn’t even exist a few years ago and driving up salaries for many tech jobs, a new report has found.

The 2025-26 Australian Tech Salary Guide, produced by consultancy Think and Grow, outlines the median salaries across a range of tech sectors and roles in all Australian states and territories.

The latest iteration of the report is dominated by AI, with AI-focused roles coming with higher salaries than many traditional software roles and many new positions emerging.

Tech at a crossroads

The report “captures a tech industry caught between the familiar and frontier”, Think and Grow co-founder Anthony Sochan said.

“The fundamentals of boards, financial discipline, operational rigour and growth-focused marketing remain the bedrock of scale-up success,” Sochan said.

“But the gravitational pull of AI is impossible to ignore.”

According to the report, directors of AI in Australia are earning an average of $236,000 annually, while machine learning engineers, data scientists and photonics algorithm engineers are being paid far more than traditional software development roles.

“For founders, the takeaway is clear: AI isn’t killing jobs, it’s reshaping them,” Sochan said.

“The winners will be those who treat it as a tool to amplify people and accelerate their organisation.

“The business case for leveraging AI to replace people remains unproven but is being tested.

“Australia’s ecosystem feels more mature than ever, but make no mistake, the story of the next five years won’t just be about building products or markets.

“It will be about leaders who know the difference between a real opportunity and a shiny detour.”

When it comes to salaries by subsection of the tech sector, software is leading the way.

The report found that consumer software comes with a mean salary of nearly $160,000, which is five per cent higher than the national average.

Deep tech and fintech roles have a mean salary of $145,000, and those in SaaS are earning on average $155,000 each year.

“SaaS and consumer software lead the salary pack, sitting above the national average and reflecting their maturity and strong revenue models,” the report said.

“Deep tech and fintech may be hiring in large numbers but pay is sitting just under the average, which could be a sign of tighter capital and longer paths to commercialisation.”

What bosses are being paid

The mean salary for a tech executive in Australia is $250,000, according to the report, with a range up to $500,000, while the mean CTO wage is $248,000.

One of the best paid new roles is director of AI, with these cutting-edge workers making up to $250,000 annually.

“These roles are necessarily junior as the rapid and widespread adoption of AI is new,” the report said.

“The number of people who are true AI experts is very small which is why we’re seeing examples like the Commonwealth Bank of Australia learning directly from OpenAI.”

Those working in data and AI in Australia earn on average $157,000 annually.

“With the rapid growth in AI businesses over the last 12 to 18 months, we’re seeing heavy investment in this area with data science, machine learning and software engineers all being ‘seconded’ into a specialised data function,” it said.

“It feels strange to say this but ‘traditional software companies’ cannot afford to not invest in AI and compete with the newer AI-native companies coming through.”

Those working at larger companies with more than 500 employees are being paid more than four per cent more than smaller firms.

“The concentration of AI talent at larger companies could also pose a risk,” the report said.

“As companies become larger, innovation and agility are often sacrificed for processes and risk-aversion.

“There will, likely, be a need for smaller companies to go outside their geographic or other areas to find those with the knowledge and ability to experiment with AI.”

The highest paid role within software engineering is principal product manager, with a mean salary of $222,000, and head of design, which has a similar mean wage.

A junior software engineer in Australia is paid between $70,000 and $80,000, rising to $120,000 for mid-level workers and then up to $160,000 at a senior level.

Tech workers in NSW are paid five per cent more than the national average, while most roles in Victoria are paid below the national average.