AI is hitting UK harder than other big economies, study finds

"According to a study by the investment bank Morgan Stanley, the research, which was shared with Bloomberg, surveyed companies using AI for at least a year across five industries: consumer staples and retail, real estate, transport, healthcare equipment and cars. It found that British businesses reported an average 11.5% increase in productivity aided by AI. US businesses reported similar gains, but created more jobs than they cut."

"It suggests UK workers are being hit particularly hard by the rise of AI, as higher costs and taxes also weigh on the job market. Unemployment is at a four-year high, as rises in the minimum wage and employer national insurance contributions squeeze hiring. More than a quarter of UK workers are now worried their jobs could disappear completely in the next five years due to AI, a survey by the international recruitment company Randstad found."

"The businesses surveyed by Morgan Stanley said they were most likely to cut early-career jobs, requiring two to five years of experience in the UK. Earlier this month the mayor of London, Sadiq Khan, warned that AI could destroy swathes of jobs in the capital and usher in a new era of mass unemployment. In his annual Mansion House speech, Khan said London is at the sharpest edge of change because of its reliance on white-collar workers in the finance and creative industries,"

Morgan Stanley surveyed companies using AI for at least a year across five industries and found British firms reported net job losses over the past 12 months, the highest rate among leading economies. British businesses recorded an average 11.5% productivity increase from AI, while US firms showed similar productivity gains but created more jobs than they cut. Rising costs, higher taxes, minimum wage increases and employer national insurance contributions are squeezing hiring and contributing to a four-year high in UK unemployment. More than a quarter of UK workers fear job disappearance within five years because of AI, with younger workers most concerned and early-career roles most likely to be cut.

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