5 AI Negotiation Myths We Want to Invalidate and What We Recommend

Negotiating job offers in the rapidly evolving artificial intelligence field can take time and effort. Many candidates, especially those new to the industry, fall prey to common misconceptions about the negotiation process.

Recently, we’ve helped hundreds of new grad PhDs negotiate job offers from FAANG companies. We’ve also analyzed over 275 AI researcher resumes; analyzing the influence of H-index, citations, and internships on offers. As a bonus, we’ve created a CV template for you to use, and hopefully, you will get more interviews!

This article aims to debunk five prevalent myths about AI job offer negotiations. It uses data from a comprehensive analysis of offers and resumes from top AI companies, including DeepMind, Meta, Amazon, Microsoft, Apple, and others.

‍1. I can’t negotiate currently, the market is too volatile

One of the most pervasive myths in job negotiations is that offers are set in stone. This myth is fueled by the tech economy's instability. Many AI Researchers, particularly those early in their careers, believe the initial offer might be the best offer they'll receive. However, our data tells a different story.

Looking at the data from companies like DeepMind, Meta, and Amazon, we see clear evidence that offers are indeed negotiable:

• At DeepMind, the average offer increases by 12% - 33%.
• At Meta, we’ve seen offers increase by as much as 42%.
• An AI researcher we worked with increased his annual Amazon compensation from $274,115 to $467,368 - a 70% jump.

Moreover, our data shows that across all companies analyzed, over 84.73% of candidates had increased their compensation from their initial offer, indicating that negotiation is a typical and expected part of the hiring process.

Advice for candidates:

1. Always assume an offer is negotiable unless mentioned otherwise. For example, Anthropic and OpenAI have a strict no-negotiation policy 
2. Research the company's BATNA and the normal compensation range for the role (this is fairly tricky — to learn more about compensation ranges, book a call with us today!).
3. Prepare a case for why you deserve a higher offer based on your skills, experience, and potential value to the company.
4. Practice your negotiation pitch before engaging with the company.

2. Even if you do negotiate, the offer won't change much

Most AI Researchers think it’s not worth negotiating since they will get minimal increases (most think 5-10%). This can discourage researchers from putting effort into negotiations. However, our data shows that successful negotiations can lead to substantial increases.

Let's look at some striking examples:

• At DeepMind, we’ve had an offer increase from $297,838 to $495,650 after negotiating - a difference of nearly $200,000 per year.
• A Meta offer rose from $456,750 to $777,750 - a massive $321,000 increase per year.
• At Amazon, an offer jumped from $492,500 to $712,500 - a $220,000 increase per year.

These changes aren’t total outliers - in many cases, successful negotiations resulted in six-figure increases in total compensation. 

To further illustrate the potential impact of negotiation, let's look at the average increases across companies:

• DeepMind: Average offer increase of $55,000 per year
• Meta: Increases range from 15% to 40%+
• Amazon: Average increases range from $50,000 to $100,000+ per year

It's important to note that these increases compound over time. A $50,000 increase in your starting salary could translate to over $200,000 in additional earnings over four years (that’s a down payment for a house!), not accounting for subsequent raises or bonuses that might be calculated as a percentage of your base salary.

Advice for candidates:

1. Set ambitious but realistic negotiation goals. Depending on your leverage, we recommend aiming for a 20-50% increase.
2. Negotiate the entire package, not just the salary. Negotiate for equity, bonuses, signing bonuses, and other benefits.
3. Using data will help you benchmark your negotiations. If others have achieved significant increases, it's possible for you too.
4. Be prepared to walk away if the offer fails to meet your expectations. Sometimes, the willingness to walk away can lead to a better offer. 

3. To negotiate effectively, you need to have counteroffers

Many researchers believe that they have no negotiation leverage without a competing offer from another company. While having multiple offers can undoubtedly strengthen your position, it's not required for a successful negotiation. 

Our data shows that many candidates successfully negotiated higher offers without explicitly mentioning counter offers:

• At DeepMind, over 25% of successful candidates likely negotiated without competing offers.
• At Meta, more than a third of successful candidates negotiated without leveraging other offers.
• At Microsoft, 43% of the successful negotiators did so without competing offers.

In more cases, the researchers without competing offers achieved increases ranging from 15% to 40%.

So - what do you use for leverage if you don’t have other offers?

We recommend leveraging your skills and relevant research experience, to negotiate effectively.

We analyzed 275+ resumes from researchers who received offers from FAANG companies and found some trends across candidates:

• Citations: The average number of citations was 845, with some candidates having over 5,000 citations.
• H-index: The average H-index was 8.71, with top candidates having H-indices of 15 or higher.
• Internships: Candidates averaged 3.3 internships, with some having six or more.

Understanding where you stand in comparison to other candidates can be helpful for identifying what you bring to the table that most other candidates don’t.

Advice for candidates:

1. Focus on your unique value proposition. Highlight your skills, experiences, and achievements that set you apart.
2. Leverage your academic achievements, such as publications, citations, and H-index, especially for research-oriented positions.
3. Emphasize your potential future contributions to the company, not just your past accomplishments.
4. Buddy up with the Hiring Manager, more often than not, they are the ones who dictate your career growth and compensation
5. If you do have other offers, use them strategically. Sometimes, merely hinting at other opportunities can be as effective as explicitly stating them.

4. You can negotiate your salary after you start

Some candidates accept an initial offer, planning to negotiate a raise later. However, this approach can be costly. Our data shows that the difference between initial and final offers can be substantial, and waiting to negotiate means potentially losing out on significant compensation.

Consider these examples:

• At DeepMind, the average difference between initial and final offers was $55,000 per year. If you wait a year and a half to ask for a raise, you lose out on $82,500.
• At Meta, an AI researcher’s final offer was $684,800 - significantly higher than the company's average initial offer. Accepting a lower initial offer to negotiate later would have resulted in a loss of hundreds of thousands of dollars.
• At Amazon, delaying negotiation would have meant missing over $200,000 per year for another AI Researcher with strong academic performance.

The potential for increased compensation is highest during the initial offer process, and waiting to negotiate later can result in substantial financial losses and strain relationships with your manager/team.

Let's break down the potential losses over time:

1. Immediate loss: The difference between the initial offer and what could have been negotiated – money you miss out on starting on the first day of your new job.
2. Compounding loss: Future raises and bonuses are often calculated as a percentage of your base salary. You are starting lower, which means smaller increases over time.
3. Retirement contributions: If your company offers a 401(k) match based on your salary, a lower starting salary means less money going into your retirement account.
4. Opportunity cost: The money you could have earned if you had invested the difference between your actual salary and what you could have negotiated.

Advice for candidates:

1. Never accept an offer to negotiate later. The best time to negotiate is before you accept the offer.
2. If you've already accepted an offer, wait at least 6-12 months before attempting to renegotiate. Use this time to prove your value to the company.
3. When negotiating a raise after starting a job, be prepared to demonstrate how you've exceeded expectations and added value to the company.
4. [For professionals] If your current company is unwilling to adjust your compensation to market rates, consider looking for new opportunities. Sometimes, changing jobs is the most effective way to increase your salary.

5. Companies have set compensation bands that don’t vary much 

Another common misconception is that companies have a standard compensation package for each role with minimal variation. This belief can lead to complacency in negotiating. However, our data reveals significant variance in compensation packages, even for similar roles within the same company.

Let's look at the variance in our data for L4 Research Scientist positions:

• At DeepMind, compensation ranged from $218,100 to $581,750 annually for Research Scientist positions.
• Meta's range for Research Scientist positions was even more comprehensive, from $201,000 to $684,800 annually.
• At Amazon, Applied Scientist positions had offers ranging from $154,000 to $712,500 annually.

This high variance indicates significant room for negotiation and that candidates should not assume their offer represents a fixed standard. Moreover, factors such as citations, h-index, and the number of internships correlated with higher offers:

• At DeepMind, the average h-index was 9.62, but those with higher h-indices often received higher initial and final offers.
• At Meta, candidates with over 2000 citations and an h-index above 11 often received offers exceeding $500,000.
• At Amazon, those with an h-index of ~10+ often received compensation packages over $500,000 in the first year.

Let's break down the factors that contribute to this variance:

1. Academic achievements: Higher citations and h-index correlate with higher offers.
2. Work experience: The number and quality of previous internships can significantly impact offers.
3. Specialization: Expertise in high-demand areas (e.g., deep learning, NLP) can command premium salaries.

Advice for candidates:

1. Highlight your unique value. If you have a high h-index, numerous publications, or specialized skills, ensure the company understands how these set you apart.
2. Consider the complete package. Sometimes, companies may have less flexibility with base salary but more room to negotiate equity, bonuses, or other benefits.

In conclusion, believing any of these five myths can significantly hamper your ability to negotiate effectively in the AI job market. Remember, your skills are valuable, the market is competitive, and companies have more flexibility in their offers than they tell you. 

Don't sell yourself short — book a free call with us today to review your market value and strategize for your negotiation.