AI Disrupts Britain’s Workforce Faster
The United Kingdom is experiencing a sharper rise in job losses linked to artificial intelligence than any other major economy, according to new research from investment bank Morgan Stanley. The study indicates that British employers are cutting more roles than they are creating due to AI adoption — a trend not seen in other leading global markets such as the United States, Germany, Japan, and Australia.
Over the past 12 months, British firms reported an 8% net loss in jobs as a direct result of AI integration, the highest rate among the economies surveyed. Despite this, UK companies also reported an average 11.5% boost in productivity thanks to AI — similar to increases seen in the US, where productivity rose but job creation outpaced job cuts.
Survey shows younger workers increasingly anxious about AI
The Morgan Stanley research, shared with Bloomberg, surveyed companies that have been using AI for at least a year across five major sectors: consumer goods and retail, real estate, transportation, healthcare equipment, and automobiles. Participants said early-career roles in the UK — requiring two to five years of experience — were the most likely to be eliminated.
Concerns among workers are growing. A separate survey by global recruitment firm Randstad found that over one in four UK employees fear their jobs could disappear entirely within five years due to AI. Younger workers, especially those from Generation Z, expressed the highest levels of anxiety about adapting to the new technology, while baby boomers showed greater confidence.
Economic pressures amplify AI disruption
The rise of AI-related job displacement comes as the UK labour market faces broader economic challenges. Unemployment has reached a four-year high, with increases in the national minimum wage and employer national insurance contributions placing additional pressure on hiring.
London mayor Sadiq Khan recently warned that AI could eliminate large numbers of jobs in the capital, saying it risks ushering in “a new era of mass unemployment” if not managed properly. Speaking at the annual Mansion House speech, Khan argued that London is “at the sharpest edge of change” due to its reliance on white-collar roles in finance, creative industries, and professional services such as law, accounting, consulting, and marketing.
“We have a moral, social and economic duty to act,” Khan said, calling for measures to ensure new jobs are created to replace those that vanish — particularly at entry and junior levels.
Global leaders call for intervention
Last week, JP Morgan chief executive Jamie Dimon told the World Economic Forum in Davos that governments and businesses will need to support workers displaced by AI or risk civil unrest as automation accelerates.
