Your next employee might cost less than the AI you give them

Your next employee might cost less than the AI you give them

About the Author

Kent McCrea has over 15 years of experience leading one of North America’s top staffing firms, delivering consulting and workforce solutions to multiple Fortune 500 organizations. As AI capabilities become more advanced and widely adopted, he brings a unique perspective on the evolving staffing landscape, with deep insights into emerging market trends and industry shifts.

On a recent episode of The Artificial Intelligence Show, the creator of Claude Code revealed that developers at AI labs now negotiate for a “token budget” — an allowance for how much AI intelligence they can use to do their jobs. Separately, on the All-In Podcast, Chamath Palihapitiya shared that this budget is approaching the cost of the employee’s salary at his own companies.

I sometimes struggle with Chamath overall, but nobody reads a room faster.

Think about what that means.

If you are like me, you’ve had a moment with AI that changes how you think. Not about the tool — about yourself. You produce something incredible, in a way that feels magical, and your understanding of what’s possible resets.

And once that happens, AI access stops being a perk and starts being fundamental to professional identity. Ambition recalibrates. Standards rise. And the idea of going back to your old ceiling becomes unthinkable.

That’s why this shift in compensation feels different from anything we’ve seen before.

We’ve spent decades evaluating people based on what they know, what they’ve done, and what they can produce. But if a knowledge worker’s output is increasingly a function of the AI tools they’re given access to, then the question isn’t just “how good is this person?” It’s “how much AI intelligence are we willing to invest in making this person productive?”

Here’s where it gets complicated for anyone managing talent:

How do you compare two candidates when one had a $500/month AI budget in their last role and the other had $5,000? Their resumes might look similar, but their recent output was shaped by completely different resource levels.

How do you scope a contract role when the deliverable depends as much on the tool stack as the person? Rate cards were built for a world where a senior developer’s value came from their own brain. That world is shifting fast.

How do you retain top performers when AI access becomes as important as salary, title, or equity? The best knowledge workers will start choosing employers partly based on the AI resources they’re given.

And here’s the one almost nobody is asking yet: when a contractor finishes an engagement, who owns the AI workflows, prompts, and institutional knowledge they built with that budget?

This isn’t a future problem. Chamath said it plainly: “This is actively happening inside my business.”

The companies that figure out how to evaluate, resource, and manage AI-augmented talent will have the advantage. The ones that keep hiring and managing people as if the tools don’t matter will fall behind.

We’re watching the definition of “total compensation” expand in real time. Salary. Benefits. Equity. And now: AI.

I’d love to hear from both sides of the table, whether you’re hiring or job searching, has AI access or a token budget come up in a real conversation yet? What did that look like?

Ready to connect?

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Mar. 2026