AI Engineer Vs. ML Engineer: Differentiating Between Roles
A Comprehensive Guide on AI Prompt Engineer Salary 2024-2025
- Prompt Engineer: Role Definition and Responsibilities
- Prompt Engineer Average Salaries Worldwide
- Skills and Qualifications of a Prompt Engineer
- Demand for Prompt Engineers Across Industries
- Overcoming Challenges for Hiring Prompt Engineers
- Effective Salary Negotiations with Prompt Engineering Talent
- Comparison of AI Prompt Engineer Salaries with Related Roles
- How to Save Your Hiring Costs: Remote vs. On-Site Work
- Wrapping Up
Like no other, we know about the high demand for prompt engineers and see how much potential this field has. Clients continually contact Mobilunity, asking to find professionals skilled in generative AI, NLP, and chatbots. Mobilunity’s AI and ML experts have supported AI-driven video streaming service development, provided advisory and consulting services for an AI-powered condition monitoring solution, engaged in AI-related development for a manufacturing company, incorporated AI-driven marketing automation for a global client, integrated machine learning algorithms into a healthcare solution, and more.
If you use Large Language Models within your organization or develop them for sale, you might be interested in hiring GenAI experts and learning their compensations.
This guide will tell you about AI prompt engineer salaries and their influencing factors, as well as trends in the field. But let’s start with the responsibilities and skills of these professionals.
Prompt Engineer: Role Definition and Responsibilities
An AI prompt engineer is a specialist who can craft inputs for generative AI models (questions, instructions, or requests, also known as prompts) that produce optimized and valuable outputs.
These models create text, audio, images, or code businesses use to automate routine tasks, boost creativity, or get data insights.
The core benefits of effective prompts (mentioned by Anthropic, one of the leaders in GenAI) are:
- Higher accuracy of the following prompts
- Prompts’ consistency in quality, relevance, formatting, and tone
- Better usefulness and more targeted experiences
- Optimized costs due to fewer back-and-forth cycles.
Below are the typical responsibilities of a GenAI specialist:
- Input query design and optimization
- Command testing and adjustment
- Curating datasets for model fine-tuning
- Minimizing bias and implementing safety guidelines
- Creating and maintaining instruction libraries
- Aligning prompts with product and model goals.
Prompt engineering is critical for refining and training AI models as GenAI experts analyze misinterpretations, gaps, or patterns in models’ results.
With AI developers, prompt specialists help create specific examples and training datasets, so their input into making generative AI tools accurate is invaluable, which consequently impacts their remunerations.
Prompt Engineer Average Salaries Worldwide
Let’s compare the annual base salary ranges for prompt engineering positions in North America, Europe, and Asia. (based on data from Stack Overflow, DOU, Indeed, Glassdoor, and India Today).
| Country | Junior Prompt Engineer | Mid-Level Prompt Engineer | Senior Prompt Engineer |
| USA | $141,000 | $159,000 | $176,000 |
| United Kingdom | $82,000 | $92,000 | $102,000 |
| Germany | $67,000 | $75,000 | $83,000 |
| Ukraine | $34,000 | $38,000 | $68,000 |
| India | $5,000 | $11,000 | $22,000 |
The table shows that an entry-level prompt engineer in the United States (junior) gets ~20% less than a mid-level specialist, while the national average pay for the senior AI interaction designer is ~30% higher. Hiring input query specialists in Eastern Europe or Asia can save EU and US-based companies 40-80% of costs on average.
So consider hiring a remote prompt expert or building an entire dedicated team for AI development to maximize the cost-effectiveness of your project.
Factors influencing remuneration levels at the prompt engineering job market are:
- Seniority. Specialists with high expertise in AI/NLP tools, proficiency in advanced prompting techniques, experience with advanced language models, programming background, and strong problem-solving skills earn more than their less sophisticated colleagues.
- Industry-specific demand. Tech companies and startups, healthcare and pharmaceuticals, financial and banking, e-commerce and retail, and media and entertainment companies are ready to pay competitively for useful and reliable AI solutions.
- Educational background and certifications. A degree in computer science, software engineering, or IT, certifications in AI and ML, NLP and LLM, data science and data analysis, and niche-specific certifications are valuable for a successful career in prompt engineering.
- Location. The salary is also higher in a region with a high cost of living and many big tech organizations. Additionally, the local labor market will impact the demand, competition, and salaries for prompt engineers.
Skills and Qualifications of a Prompt Engineer
Let’s look closer at the tech skills, education, and certifications one needs to become a prompt engineer and make a rewarding career in AI.
|
Tech Skills |
Education |
Certifications |
| Natural Language Processing fundamentals and linguistic background Proficiency in AI/ML tools and networks Strong programming skills Knowledge of data processing and analysis of model outputs Competency in model tuning Basic understanding of statistical analysis Prompt engineering skills Familiarity with Git | A degree in computer science, information technology, or software engineering Programs focused on AI, ML, or data science A degree in linguistics, communication, or cognitive science | AI and ML certificates from Google, AWS, and MS Computational linguistics and LLM certifications from Coursera, Stanford, Hugging Face, etc. Data science and data analysis certification from IBM, Google, or Johns Hopkins University |
The mix of linguistic studies, computer science, and AI and NLP-related certifications from top platforms like Google Cloud, DeepLearning.ai, and Microsoft are vital for obtaining the expertise and skills to work as a prompt designer.
Demand for Prompt Engineers Across Industries
Here are the base prompt engineering managers’ compensations for multiple industries in the United States. (Glassdoor)
The numbers highlight that IT, financial services, media & communication, insurance, aerospace and defense, healthcare, and pharmaceutical and biotechnology need AI prompt specialists most and offer them lucrative salaries.
The Future of Prompt Engineering
We can expect significant growth in all AI jobs, as the global Artificial Intelligence market size is expected to grow from $214.6 billion in 2024 to $1,339.1 billion in 2030 at a Compound Annual Growth Rate (CAGR) of 35.7% (MarketsandMarkets).
So, the number of job opportunities for prompt experts will only grow.
Overcoming Challenges for Hiring Prompt Engineers
Companies face the following challenges when hiring skilled prompt designers:
1.Talent Shortage
Prompt engineering is quite a new field with a strong demand for professionals with specific expertise. This way, finding the right talent can require more time and budget than when, for instance, you hire Machine Learning engineers or data scientists.
2. Defining the Role Scope
The responsibilities of prompt experts can be vague and overlap with the duties of other roles. So, employers may need help setting clear and specific requirements to define the right blend of tech, analytical, and language skills.
3. Constant Innovations
The technologies and best practices for extensive language models and prompt engineering advance quickly. Companies need to hire prompt specialists who keep pace with these changes and adapt to new methods, techniques, and frameworks as they appear.
4. Responsible AI Use
It can be challenging to find candidates who provide relevant background for creating safe, responsible prompts and working with sensitive apps. Finance and healthcare, for instance, require close-to-zero bias and alignment with ethical standards.
5. Lucrative Income Expectations
Due to the significant need for and limited qualified talent, project owners have to set competitive prompt engineering remunerations and packages to hire top candidates. Meanwhile, companies need to find alternative ways to hire prompt designers.
Recommendations for Effective Recruiting of Prompt Engineers by Our Hiring Professionals
To maximize the chances of contracting a GenAI expert that matches the requirements of your AI or prompt engineering project, you need to:
- Craft a clear job description. Define the scope, responsibilities, technical and language skills, and preferred experience. Emphasize multidisciplinary skills to attract candidates with diverse and relevant backgrounds.
- Standardize skill assessment. Hold a tech interview instead of offering a test task so that more candidates would readily join the interview. This will facilitate demonstrating the necessary skills in query design, iteration, and optimization. Add challenges requiring creative problem-solving and AI ethics.
“Test tasks often deter candidates, especially when they’re unpaid. Instead, we conduct technical interviews led by experienced in-house professionals with expertise in the relevant tech stack. This approach is more engaging for candidates, as they get valuable feedback from a seasoned expert. It also helps attract stronger and more qualified applicants for your position.”
Zoryna Yushko, Leading IT Recruiter at Mobilunity
- Highlight training opportunities. Allow your prompt engineers to enjoy their knowledge and career growth within your company. Help them learn prompt engineering innovations through courses, certifications, conferences, etc., and create an experiment-encouraging environment.
- Consider hiring remotely. Since most companies use cloud-based tools within prompt engineering teams, think of contracting a remote specialist or building an offshore team for AI development. The following sections will discuss this format’s pros and cons.
- Offer competitive compensations. Since the salary for a prompt expert is high, especially across the United States, you’ll need to allocate enough funds for the role. Attractive remunerations and benefits will help you engage experts, and you need to learn how to discuss pay with candidates.
Effective Salary Negotiations with Prompt Engineering Talent
Agreeing on your prompt engineer’s salary requires a well-thought-out approach.
These steps might help you negotiate an optimized compensation to attract and retain top talent:
- Conduct thorough research on current salary ranges. Check what top tech companies offer engineers with the required expertise level. In contrast to the common thought, sites like Glassdoor, ZipRecruiter, or Levels.fyi won’t always mirror the actual market state. Instead, look up resources like Stack Overflow and IEEE to learn the current benchmarks of local businesses while remaining competitive with the broader market. Those base their reports on the actual surveys of IT professionals rather than the numbers mentioned in open vacancies.
- Highlight the full compensation package. While you can’t set annual salaries as high as tech giants, emphasize the full value of your offer. Stress benefits like bonuses, stock options, retirement plans, healthcare, paid training, certifications, career paths, and performance incentives.
- Offer flexible working conditions. Hybrid or remote options can be a significant perk, as many candidates value flexibility. Home office setup stipends also can make the compensation package more appealing without increasing the base salary.
Though your offered salaries can range significantly, sometimes budget constraints won’t let you meet applicants’ demands.
Once this happens, be ready to walk away respectfully. Cultivate positive relations by staying transparent and offering to keep in touch for future opportunities.
Key Aspects to Cover When Signing a Contract with a Prompt Engineer
When your payroll negotiations succeed and the candidate accepts the job offer, check the list of items to include in a cooperation agreement.
| Aspects to Cover | Steps to Make |
| 1. Clear job role and responsibilities | Define the scope to avoid overlapping with other AI/ML roles Set expectations from the work with cross-functional teams to align deliverables Mention your intent to stay updated on LLM advancements |
| 2. Performance metrics and deliverables | Specify metrics for the quality and effectiveness of prompts Outline the need for regular interactions to improve query outcomes Set realistic project milestones and deadlines |
| 3. IP (Intellectual Property) and confidentiality | Ensure you get IP rights over all instruction templates, datasets, or modifications State data privacy requirements Sign NDAs to protect datasets, methodologies, etc. |
| 4. Responsible AI guidelines | List responsibilities that ensure the ethical use of AI Define standards for content safety, especially for public-accessible content Include compliance with relevant data privacy regulations |
| 5. Access to tools and resources | Name the tools and datasets your engineer needs Outline the budget for training machine learning models and experimentation State conditions under which you provide training and development opportunities |
| 6. Data security and compliance | List data privacy, secure storage, and sensitive information handling standards Highlight compliance with specific industry standards (HIPAA, FINRA, etc.) Set security practices for data encryption, model access, or API key handling |
| 7. Flexible/remote work terms | Define your expectations for availability and in-office visits Outline the communication schedule and response times Specify allowances for equipment and software |
| 8. Compensation structure | Ensure clarity on the base wages and benefits Detail the criteria for getting performance-based bonuses Define the details of signing bonuses or equity compensations |
Comparison of AI Prompt Engineer Salaries with Related Roles
Here’s a brief highlight of the positions related to AI software development and a comparison of their salaries in the United States (according to Glassdoor).
|
Roles |
Primary Goal |
Tech Expertise |
Average Annual Salary in the US (Base) |
|
Prompt engineers |
Helping language models produce quality responses |
Language understanding technology and input query optimization |
$133,525 |
|
ML engineers |
Developing, deploying, and maintaining models in production | Expertise in deploying and managing ML systems |
$121,244 |
|
Data scientists |
Extracting data insights and building predictive models |
Strong statistical and modeling skills |
$115,814 |
|
Data engineers | Ensuring the data infrastructure of an AI system is accessible and scalable |
Proficiency in data infrastructure and big data management |
$105,268 |
Although prompt engineering is still evolving, its novelty and creative nature contribute to its high salaries that sometimes exceed those of other AI professionals.
The 3 key factors that impact the competitive pay of prompt engineers are:
- Rare skill set. The combination of deep knowledge of computational linguistics and LLMs like ChatGPT, LLaMA, or GPT-4, together with creativity, is critical for getting valuable outputs for businesses adopting automated content creation.
- Platform-specific expertise. Mastery of the emerging tools (Hugging Face, LangChain) requires programming, data engineering, and traditional AI skills that increase the earning potential of prompt engineers.
- Industry and location. As we’ve highlighted earlier, biotech and finance companies typically pay higher salaries than, for instance, legal or entertainment ones. Similarly, businesses offer more in regions with strong demand for tech roles, like Silicon Valley.
How to Save Your Hiring Costs: Remote vs. On-Site Work
The working format can significantly impact the compensation of prompt engineers.
Employees may ask for higher compensation for going to the office due to the commute time, more distractions, and less autonomy.
At the same time, you can better control an on-site team and benefit from their enhanced collaboration and knowledge sharing.
Nonetheless, the remote work era is evolving, so let’s explore the advantages and disadvantages of hiring remotely from an employer’s perspective.
| Pros | Cons |
| Access to a global talent pool | Communication and collaboration approaches need more attention |
| Significant cutting of development and operational costs | Remote onboarding and training can be less effective |
| Enhanced productivity due to better work-life balance and absence of commutes | Security and compliance risks |
| Easier team expansion and downsizing | Dependence on engineers’ self-motivation |
Remote hiring appears in several formats: working with freelancers, hiring full-time employees (FTEs), and contracting remote engineers through a vendor. The last option proves to be a suitable solution, provided you collaborate with a credible partner.
Here are its key advantages:
Additionally, with an experienced vendor, you typically get:
- Back-office support
- Ongoing retention
- Long-term collaboration.
Wrapping Up
AI interaction designer salaries can vary from around $10,000 to $200,000 per year, depending on the prompt specialists’ experience and location, the industries they work in, and the hiring formats.
The future of prompt engineering is optimistic since the demand for this occupation and the compensation are expected to grow.
At the same time, businesses can consider alternative formats to in-house hiring, and remote contracting is becoming more prominent.
Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.
