A boss of mine once told me: „pick the title that will make our customers believe you are the right person for the job“.
Having a job title that accurately describes what you do not only helps in job market but also can help at your own org. This is seen in data/ai positions where the same person could have job titles like "data scientist", "ai scientist", "machine learning engineer", "ai engineer", "ai researcher", etc. The job title data scientist can be a catch all, but the job of do business based data analytics versus building ai models is hugely different. If you do business based data analytics it doesn't make sense for someone at work to ask you how llama 3 works or how we're going implement one of the mistral models? It's easy to think of other vice versa scenarios.
The only thing that matters to your career in the long run is $$$. The more you make, the more credibility you have and the more interesting work you’re able to pick for yourself. The endless variety of arbitrary “titles” is a motivational device primarily designed to give you something in lieu of a bigger raise. Do not buy into that. Caveat: I’m speaking of the various “levels of seniority” within the same career track. If you e.g. become an exec, then yeah, your title will make a difference. But for lower levels, do recognize that this is a hamster wheel, and one that isn’t portable across companies. $$$ you’re willing to forego, and your skill set, will determine your level in a career move to a much greater extent than your current level. It’s the most powerful signal you can use in a negotiation.
I (literally) literally LOL'd--I was expecting more depth.
TL;DR
1. Monetary value
2. Resume scan issues
This is for LinkedIn employees. That is those who do not have any major success outside of the resume. And they're not really differentiated in the market for those who have great success outside in the real world can actually counter signal their value by having job titles which are different from the norm and not having a LinkedIn profile for example.