A CEO told employees they won't get raises in 2026 because the budget is going to AI - Business Insider

Teradata, a data analytics company, informed its approximately 5,100 employees in January 2026 that they would not receive annual salary raises for the year. The company stated that the budget typically allocated for raises would instead be redirected toward investments in artificial intelligence. The announcement was reported by Business Insider.

The decision affects all employees across the organization. Teradata's move reflects a growing trend among technology companies to prioritize AI spending, sometimes at the expense of employee compensation. The company did not specify which AI projects or initiatives the redirected funds would support.

No further details were provided about potential alternative compensation adjustments or long-term plans for employee pay. The announcement comes amid broader industry shifts where companies are balancing AI investment with workforce costs. Teradata has not commented on whether future raises will resume after the 2026 pause.