A Multiple Linear Regression Approach to Predicting AI Professionals’ Salaries from Location and Skill Data

Siti Sarah Maidin, Ding Yi, Yahya Ayyasy

Abstract


The rapid growth of Artificial Intelligence (AI) industries worldwide has increased the demand for skilled professionals and highlighted the need to understand salary determinants in this sector. This study aims to analyze the factors influencing the compensation of AI professionals globally, with a particular focus on the effects of company location, experience level, and required technical skills. Using a dataset of 15,000 AI job postings collected from multiple countries, a Multiple Linear Regression (MLR) model was developed to identify predictive relationships between independent variables—location, experience, and skills—and the dependent variable, annual salary in U.S. dollars. Data preprocessing included one-hot encoding for categorical variables, standardization of numerical attributes, and vectorization of text-based skill descriptions. Model evaluation produced strong predictive results, with an R² of 0.82, a Mean Absolute Error (MAE) of 18,677 USD, and a Root Mean Squared Error (RMSE) of 25,704 USD. Statistical tests confirmed that company location and experience level significantly affected salary outcomes (p < 0.05), while technical skills contributed only marginally. These findings suggest that structural factors such as geography and seniority play a more decisive role in determining AI salaries than specific technical competencies. The study concludes that MLR offers a transparent and interpretable analytical framework for exploring salary disparities in the global AI workforce. The results provide practical implications for organizations designing fair compensation policies, professionals assessing market value, and educators aligning training programs with evolving industry demands.


Article Metrics

Abstract: 19 Viewers PDF: 8 Viewers

Keywords


AI Salary Prediction; Multiple Linear Regression; Experience Level; Geographic Location; Technical Skills

Full Text:

PDF


Refbacks

  • There are currently no refbacks.



Barcode

IJIIS: International Journal of Informatics and Information Systems

ISSN:2579-7069 (Online)
Organized by:Departement of Information System, Universitas Amikom Purwokerto, IndonesiaFaculty of Computing and Information Science, Ain Shams University, Cairo, Egypt
Website:www.ijiis.org
Email:husniteja@uinjkt.ac.id (publication issues)
  taqwa@amikompurwokerto.ac.id (managing editor)
  contact@ijiis.org (technical & paper handling issues)

 This work is licensed under a Creative Commons Attribution-ShareAlike 4.0