World of HR: AI is replacing more jobs in the UK than in other countries

Industries from tech to banking to education are being impacted by the rise of AI. And as companies like Amazon, Salesforce, and Workday invest less in hiring and more in the new technology, new research finds that some economies have been hit harder than others.

Where in the world? Japan, Germany, Australia, and the UK saw jobs decline due to AI over the last year, with the latter being hardest hit, according to a recent report from Morgan Stanley, shared with Bloomberg.

Some companies in the UK are cutting back on hiring so they can invest in AI and benefit from its efficiencies. As a result, open roles are being left unfilled, compounding the country’s already suffering job market, Bloomberg reported.

Employers in the UK are already navigating a tricky economy: Overall growth has slowed, and the minimum wage has increased. The unemployment rate is approaching its highest level since 2020, and younger, white-collar workers have seen their job prospects increasingly replaced by AI. Software developers, consultants, and HR professionals are among those experiencing a decline in job opportunities, a Bloomberg analysis found.

Two-thirds of employers in the UK invested in AI over the last year, according to research from recruitment firm Randstad, the Guardian reported. Meanwhile, 27% of workers said they’re worried their jobs will disappear because of AI, and 45% believe AI will benefit companies more than workers. More than half of employees are more focused on securing their jobs than finding new opportunities, HR Brew reported previously.

Morgan Stanley found that while job opportunities have diminished in the UK, companies saw an 11.5% productivity boost thanks to AI. Moreover, the Bank of England and the UK Office for Budget Responsibility predict that AI could help the UK’s economy overall.

Workers in the UK need new training and education to thrive in an AI-lead economy, Andrew Bailey, governor of the Bank of England, told BBC Radio 4 in December. “We do have to think about: what is it [AI] doing to the pipeline of people? Is it changing it or not?” Bailey posed to the British radio station. “I think if it’s people working with AI, I’m not sure it will change the pipeline, but I think we’re right to have an eye on that point.”

Satellite view. The US is the only country that has seen an increase in roles as a result of AI, according to the Morgan Stanley report seen by Bloomberg. However, the unemployment rate of new college graduates is climbing, CNBC reported.

Jamie Dimon, CEO of JPMorgan, warned an audience at Davos in January that companies may need to slow down their adoption of AI. He said governments and businesses must be ready to support workers displaced by AI or risk “civil unrest.”

“Your competitors are going to use it and countries are going to use it,” Dimon said. “However, it may go too fast for society and if it goes too fast for society that’s where governments and businesses [need to] in a collaborative way step in together and come up with a way to retrain people and move it over time.”