Quantitative finance professionals continue to see pay increases as artificial intelligence becomes increasingly embedded in research, trading, portfolio construction, risk management and technology, according to new research from the CQF Institute.
The 2026 Careers Guide to Quantitative Finance, published by the CQF Institute, part of Fitch Learning, found that compensation increased across all six major quantitative finance career paths between 2025 and 2026.
Average salary growth was approximately 3.5% in North America, 4% in Europe and 5% in Asia. Total compensation for heads of trading in North America can now reach as much as $750,000, according to the report.
The research suggests that AI is changing the nature of quant roles rather than reducing demand for quantitative specialists. Some 59% of professionals surveyed said AI had already expanded their responsibilities, while 74% expect the technology to bring about a major or complete transformation of their role within five years.
As routine analytical tasks become increasingly automated, employers are placing greater emphasis on candidates who can apply quantitative techniques to real-world data, translate research into production systems and exercise judgement over the outputs of increasingly sophisticated models.
Hiring demand remains strong, although recruiters report a more competitive and technically focused market. Quant developers, quant researchers and machine learning engineers are among the roles proving most difficult to fill, reflecting demand for professionals able to combine financial knowledge with engineering and AI capabilities.
The skills gap is also becoming more pronounced. Some 88% of respondents said they believe a skills shortage exists within quantitative finance, while 76% said the gap has widened over the past three years.
“AI is not removing the need for quant professionals – it is changing what makes them valuable,” said Dr Riaz Ahmad, program manager at the CQF Institute.
“Strong mathematical and technical foundations remain essential, but the professionals who stand out are increasingly those who can apply those skills in production, exercise judgement, work across disciplines, and use AI effectively and responsibly.”
The research also highlights the growing importance of ongoing professional development. More than four in five respondents said continuous learning is essential for long-term career success, while 75% said their current role requires capabilities they were not taught at university.
For hedge funds and other quantitative investment firms, the findings point to continued competition for specialists capable of combining mathematical expertise with software development, machine learning and practical investment knowledge.
The CQF Institute said the research was based on original research, recruiter insights, faculty perspectives and interviews with practitioners, and is intended to examine how careers in quantitative finance are evolving as AI becomes part of day-to-day industry operations.
