Britain is losing more jobs than it creates due to artificial intelligence, according to a new study by Morgan Stanley. The research, shared with Bloomberg, surveyed companies using AI for at least a year across five industries and found that British firms reported net job losses of 8% over the past 12 months—the highest rate among leading economies including the US, Japan, Germany, and Australia.
While UK businesses reported an average 11.5% increase in productivity aided by AI, US companies saw similar gains but created more jobs than they cut. The study suggests that higher costs and taxes are exacerbating the impact on UK workers, with unemployment at a four-year high as rises in the minimum wage and employer national insurance contributions squeeze hiring.
A separate survey by recruitment company Randstad found that more than a quarter of UK workers fear their jobs could disappear within five years due to AI. Younger workers, particularly Gen Z, are most concerned, while baby boomers show greater confidence. Morgan Stanley noted that businesses are most likely to cut early-career jobs requiring two to five years of experience.
London Mayor Sadiq Khan recently warned that AI could destroy swathes of jobs in the capital, especially in white-collar sectors like finance, creative industries, and professional services. He called for action to create new roles, as entry-level and junior jobs are expected to be the first to go. Jamie Dimon, CEO of JP Morgan, also urged governments and businesses to help displaced workers to avoid civil unrest.
