We're creating a system that celebrates superstars but has no way to create new ones, and it's unsustainable. Today’s newsletter breaks down the signal in the noise of AI talent.

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In today’s edition:

• Signal vs Noise— AI Talent Crisis [Running Out of AI Engineers]

• Build Together— Here’s How I Can Help You

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[Signal vs Noise]

AI Talent Crisis [Running Out of AI Engineers]

You've heard the noise.

AI engineers are making a fortune.

In India, seniors are pulling in ₹40-80+ LPA.

In the US, they're earning 40% more than other software engineers.

Companies are in a bidding war, throwing money at anyone who can spell "transformer."

But that's just the noise.

It's a symptom of a much deeper, more dangerous problem.

The real story, the signal, is that we're creating a two-tiered system that's destroying the future of AI talent.

We're kicking out the bottom rungs of the ladder and then wondering why no one can climb it.

This isn't just about salaries.

It's about survival.

Let's go.

[The Signal] We're Creating a Two-Tiered System

The AI world is splitting into 2 to 3.

Tier 1 - The Superstars

These are the top 13-33% of engineers who are experts in deep learning and generative models.

Big companies like Meta and Google are paying them $300,000+ packages, creating a "superstar effect" that prices everyone else out.

Tier 2 - The Vanishing Mid-Level

This is where everyone else is supposed to be, but the floor is collapsing.

The traditional career path from junior to mid-level to senior is broken.

Here's a scary stat:

Companies are adopting "senior-only" hiring policies.

They don't want to train people, they want ready-made experts.

As one expert put it, we are "cannibalizing our own future."

Without junior engineers today, there are no senior engineers tomorrow.

It's that simple.

Why Is This Happening?

The irony is -

The tasks we used to give to junior developers, writing basic code, debugging simple problems, and writing documentation, are now being automated.

AI now writes nearly half of all new code.

Bill Gates wasn't kidding when he warned that AI would wipe out these jobs.

This creates a "catch-22" for anyone trying to break in.

Companies want graduates who are "AI-savvy" and don't need training.

But how can you get experience if no one will hire you without it?

For a single company, hiring only seniors makes perfect economic sense in the short term.

But when every company does it, the whole industry starts eating itself alive.

The Broken Pipeline

Think of the talent pool like a water pipeline.

Right now, it's leaking everywhere.

• universities are producing 40% fewer AI-ready graduates than the market needs

• skills you learn today are obsolete in 15 months

• big tech companies hire 70% of the top talent right out of college, draining the pool for everyone else

This leaves us with a massive global shortage.

There are 4.2 million open AI jobs, and only 320,000 qualified people to fill them.

The result?

A desperate, expensive bidding war for the few seniors who are left.

So, What Do You Do? Fight Back

The system is broken.

Complaining about it won't fix it.

This isn't someone else's problem to solve.

It's ours.

Whether you're a leader running a team or an engineer trying to build a career, you have a role to play.

How I'd learn AI Engineering in 2025? [If I could start over]

The choice is simple -

Here's how you fight back.

[For Leaders] Stop Buying Talent - Start Building It

Your job is no longer to just hire the best.

Your job is to create the best.

Your company needs to become a talent factory, not just a talent consumer.

The senior-only policy is eating your company's future.

Create a new role - the AI Apprentice.

Their job isn't to do what seniors do.

Their job is to augment them.

• they test the code AI generates

• they search for edge cases that the model missed

• they act as the human-in-the-loop for your senior engineers

They learn by doing, and your seniors get leverage.

You stop burning cash on a bidding war and start investing in a loyal team.

[For Engineers] Stop Waiting for a Job - Start Building Your Value

You can't get a job without experience, and you can't get experience without a job.

The old way of applying for jobs is dead.

You have to break the cycle yourself.

1 - Become an AI Collaborator, Not Just a Coder

The market isn't looking for someone who can just write code anymore.

AI can do that.

It's looking for someone who can think.

Check How I Transitioned from Software Development to AI Engineering?

Don't just generate code with Copilot:

• your value is in knowing when the AI is wrong

• find the bug

• find the security flaw

Your job now is to know:

• how does this model fit into the larger business problem?

• what are the data pipeline issues?

• what happens when it fails?

Prompt engineering, yes, but also:

• ethics

• communication

• problem-solving

These are the skills that can't be automated.

2 - Your Portfolio is the new Resume

A hiring manager spends 6 seconds looking at your GitHub.

[Steal my GitHub]

This is the secret weapon.

Also, check How to Build an AI Portfolio With or Without Coding?

Write a short blog post about a model that didn't work and why.

This proves you're a real engineer, not just someone who can follow a tutorial.

It shows you can think.

Final Thought

The AI talent crisis is a classic coordination problem.

Everyone is making a rational choice for themselves, which is leading to a bad outcome for everyone.

The only way to win is to break the cycle.

The companies that figure this out won't just solve their own hiring problems.

They'll own the future of how talent is built in the AI era.

For leaders, that means building a system that creates talent.

For engineers, that means building the skills and proof that no one can ignore.

Stop complaining about the crisis.

Start building the solution.

The future isn't bought.

It's built.

Signal vs Noise

This is the series in which I take the single AI topic of the week and deliver my sharp and original analysis.

If you want my analysis on any topic, reply with your topic to this email.

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Starting a new cohort of AI Engineer HQ on September 3rd, 2025 [8:30 PM IST]