Bad news first: a Resume Builder survey of 866 US business leaders found that 54% of companies have cut or plan to cut employee compensation to fund AI spending in 2026 (reported by Forbes).
Now the good news, which is buried in the same survey: 71% still plan to give performance-based raises.
Read that again. The money hasn't vanished. It's being rationed, and it's going to the people who can point to results. Your job is to be one of them.
Stop asking for a raise. Start pitching an investment.
Your CFO is staring at a big AI bill and wondering if it will pay off. Walk in as proof that spending on talent pays off too.
1. Show how you multiply output.
If you've used AI tools to cut a 10-hour task to 3, say so, with numbers. "I automated our weekly reporting and freed up 7 hours a week for client work" beats "I work really hard" every time. Companies are begging for people who make their AI investment look smart.
2. Bring one number, not a list of feelings.
Pick your strongest result: revenue influenced, costs cut, hours saved, errors avoided. One clear figure is more persuasive than ten vague accomplishments. If you can't find it, that's your homework before the meeting, not after.
3. Make yes easy.
A tight budget doesn't always kill a raise, but it does make a big lump sum harder to approve. Offer options: a smaller base bump plus a performance bonus, a raise that kicks in next quarter, a title change that unlocks a higher band. The easier you make it for your boss to say yes, the more likely they will.
The 60-second version
Try this opening:
"Over the last six months I've [specific result]. I'd like to talk about moving my compensation to [number or range] to reflect that. I'm also open to discussing how we structure it."
Then stop talking. The silence is uncomfortable. Let them fill it.
If you hear "not now"
"No" and "not now" are different. Ask what specific results would earn a yes, and get a date to revisit it. Then send a short email summarizing what you agreed on, so it exists in writing.
Budgets are tight, but the people who can prove their value are still getting paid. Be one of them.