AI Adoption May Lead to Job Reductions for Thousands in the UK

Thousands of workers in the UK could face job losses in the coming year as companies increasingly turn to artificial intelligence (AI) technologies, according to a survey conducted by the Chartered Institute of Personnel and Development (CIPD).

The survey indicates that approximately one in six employers is considering AI as a means to reduce their workforce. Notably, 62% of employers identified entry-level and clerical roles as the most susceptible to replacement.

Private sector employees appear to be at greater risk, with 26% of firms anticipating workforce reductions, compared to 20% in the public sector.

Furthermore, over a quarter of companies planning layoffs due to AI expect to cut more than 10% of their total workforce within the next year, highlighting a significant shift in the labor market toward technology reliance.

This trend coincides with an increasing focus on AI solutions aimed at boosting productivity and lowering operational costs, prompting discussions about the future of traditional employment and the urgent need for workforce reskilling initiatives to adapt to these changes.