The growing use of artificial intelligence in the workplace has caused “very good” disruption to the job market, the boss of a recruitment agency has said.
Toby Fowlston, chief executive of recruiter Robert Walters, said the increasing adoption and use of AI has helped free up time for “really critical human moments” and boosted companies’ demand for workers.
It came after the London-listed firm revealed a rise in net fees in its UK operations, leading its shares to jump around 8% in afternoon trading on Wednesday.
Strong UK performance
Robert Walters’s net fees across its UK market grew 10% to £13.2 million year on year in the quarter to September 30.
Mr Fowlston told the Press Association: “Clearly there’s been huge disruption with AI, and much by the way has been very good.
“Particularly for us, the administration and really giving back valuable time for those really critical human moments, which are so important in our business.”
He added: “Every single person within their job likely has tasks which are automatable and tasks which are not.
“And I think what AI is really doing is it’s really starting to disrupt those tasks that, frankly, you can automate, and therefore those tasks are now being substituted by humans with AI.
“Now, the other side of that, of course, is that it creates capacity, and therefore the complementary element is that we are starting to see – and have been seeing – that actually a lot of these organisations that have really adopted AI, they have an even greater need for people.”
Impact on youth unemployment
Mr Fowlston said the recruitment agency has seen a growing demand for lawyers and compliance and cyber experts from firms, to help with their adoption and usage of AI.
He also said the increasing use of AI, including for administrative roles, has had an impact on youth unemployment.
Mr Fowlston said the “bar for entry” to the job market was now “much higher” for young people and graduates.
Asked how to tackle this, he told PA: “I think Government intervention is always going to be helpful.
“See what comes out in the Budget on that, and indeed what the Government feel on that, and I think anything that can enable that youth entry to improve is clearly a good thing.
“That’d be the first thing.
“I think the second thing is really recognising what the graduate entrants can also do themselves as well.
“I mean, what are the skills that AI doesn’t have?
“It doesn’t have emotion, communication, getting out and talking to people, the ability to get into offices, all these key things.”
Mr Fowlston added: “We would always be encouraging hiring managers to meet people face-to-face, because at the end of the day, unless it’s a hugely technical and specialised role, you’re hiring a person, you’re hiring a human being.”
Group results and outlook
Robert Walters’s specialist recruitment portfolio – which includes permanent and temporary recruitment, executive search and interim management – saw net fees increase by 14% in the UK year on year in the quarter to September 30.
The group said the growth was driven by a “good performance” in permanent hiring.
Meanwhile, recruitment outsourcing rose by 19% across UK operations.
The firm cut its global workforce by around 15% last year as part of a cost savings drive to offset tougher trading, with the UK hit hardest as it slashed fee-earning roles by a quarter.
Earlier this year, the company announced it would continue to make further cost cuts in 2026 as it hiked its savings target to at least £12 million a year by 2027, up from £10 million previously.
The firm is seeking to bounce back after reporting a £19.6 million loss in 2025.
In Wednesday’s trading update, the company revealed the group’s net fees worldwide grew 1% in constant currency in the quarter to September 30, reaching around £69.7 million.
Most analysts are expecting the company to report an operating loss of £8.3 million this year.
Established in 1985, Robert Walters operates across 29 countries and counts around 2,800 employees.
