AI Drives UK Job Declines

(MENAFN) Artificial intelligence has led to an overall 8% reduction in jobs across the UK during the last year, marking the steepest decline compared with other major economies, according to fresh research provided to Bloomberg.

An analysis conducted by investment bank Morgan Stanley found that the UK is shedding more roles than it is generating as a consequence of AI adoption. The report noted that Britain is experiencing a stronger negative impact than other large economies such as the US, Japan, and Germany.

The research examined firms that have been implementing AI for at least 12 months, spanning five sectors: consumer goods and retail, property, transportation, medical equipment, and automotive manufacturing.

Findings revealed that UK companies achieved an average productivity boost of 11.5% with the help of AI. While businesses in the US recorded comparable efficiency improvements, they still added more positions than they eliminated.

According to the study, UK employees are bearing a disproportionate share of the disruption caused by AI, with elevated operating expenses and heavier tax burdens further straining employment conditions.

Morgan Stanley also reported that companies were most inclined to reduce entry-level positions in the UK, particularly roles requiring between two and five years of professional experience.

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