The United Kingdom is experiencing net job losses due to artificial intelligence at a rate double the global average, according to new research from Morgan Stanley. The study, shared with Bloomberg, surveyed companies across five industries that have used AI for at least a year, including consumer staples, retail, real estate, transport, healthcare equipment, and cars.
British firms reported an average 11.5% increase in productivity from AI, but this came with an 8% net reduction in jobs over the past 12 months. This contrasts with the United States, where similar productivity gains led to net job creation. The UK's higher costs and taxes, including rises in the minimum wage and employer national insurance contributions, are squeezing the job market, with unemployment at a four-year high.
A separate survey by recruitment firm Randstad found that over a quarter of UK workers fear losing their jobs to AI within five years. Younger workers, especially Gen Z, are most concerned, while baby boomers show greater confidence. The Morgan Stanley study indicated that early-career jobs requiring two to five years of experience are most at risk of being cut.
London Mayor Sadiq Khan recently warned that AI could destroy swathes of jobs in the capital, particularly in white-collar sectors like finance, creative industries, and professional services. He called for action to create replacement jobs, noting that entry-level and junior roles are the first to go. JP Morgan CEO Jamie Dimon also urged governments and businesses to support displaced workers to avoid civil unrest.
