AI impact on UK jobs: higher losses than other economies

A new study reveals that artificial intelligence is having a more pronounced negative impact on the UK labor market than on other major global economies. According to a report by investment bank Morgan Stanley, cited by The Guardian, the number of jobs lost to AI implementation in the country now exceeds the number of new vacancies created.

Analysts report that over the last 12 months, British companies have seen a net reduction in jobs of 8% linked to AI use. This figure is the highest among leading economies, including the US, Japan, Germany, and Australia. The research covered sectors such as retail, real estate, transport, medical equipment, and the automotive industry. In these sectors, AI helped UK firms boost average productivity by 11.5%, but this gain did not offset the job losses. The situation in the US appears different; there, AI implementation also increases efficiency, but it creates more jobs than it eliminates.

Additional pressure on the UK labor market comes from rising costs and tax burdens. Increases to the minimum wage and higher employer contributions to the national insurance system are reducing companies' capacity to hire new staff. Against this backdrop, the country's unemployment rate has already reached a four-year high, and the influence of AI is making workers' positions even more vulnerable.

A survey by international recruitment firm Randstad indicates that more than a quarter of Britons fear their professions could be replaced by artificial intelligence within the next five years. Generation Z shows the greatest concern, while those approaching retirement age display noticeably more optimism and confidence in their continued employability.

London Mayor Sadiq Khan has previously warned that AI could displace a significant number of jobs in major cities and trigger a new wave of unemployment. He argued that authorities and businesses need to act now on ethical, social, and economic levels to ensure the technologies being developed are accompanied by the creation of new jobs, particularly for entry-level specialists who typically suffer first from such changes.