The rapid advancement of Artificial Intelligence (AI) is set to trigger significant workforce changes across the United Kingdom, with a startling new report indicating widespread job cuts are on the horizon for next year.
The Scale of the AI Takeover
According to data from the Chartered Institute of Personnel and Development (CIPD), approximately one in six employers are actively considering replacing employees with some form of AI technology. This alarming statistic suggests that the fear of automation is quickly becoming a reality for thousands of workers.
The figures reveal a particularly sharp risk for those in the private sector, where 26% of companies are expected to cut roles in the coming year. A detailed breakdown shows that 17% of private sector firms plan to reduce their headcount, while the figure for the public sector is slightly higher at 20%.
Among the businesses looking to downsize their human workforce, a significant 26% are forecast to slash more than 10% of their employees, signalling deep cuts rather than marginal trims.
Which Jobs Face the Highest Risk?
The CIPD report has pinpointed the specific roles that employers believe are most vulnerable to automation. Topping the list are junior clerical or administrator roles, with employers assigning them a 62% chance of being reduced due to AI.
Other positions identified as high-risk include:
- Manager or senior administrator roles (28% likelihood)
- Sales or services positions (27%)
- Semi-skilled or unskilled manual work (23%)
- Professional roles (17%)
- Skilled manual work (13%)
- Foreman positions (10%)
The report also highlighted that sectors such as finance, insurance, IT, and administrative and support services are particularly exposed to this wave of change.
Real-World Impact and Calls for Action
This is not a theoretical future scenario; the transition is already underway. The professional services giant PwC reduced its global workforce by 5,600 in the year to 30 June. Notably, while these roles were being cut, the group invested nearly $1.5 billion (approximately £1.1 billion) to expand its AI capabilities.
James Cockett, a senior labour market economist at the CIPD, commented on the dual nature of this technological shift. “AI is transforming the way many people work and has great potential for improving productivity and performance, but it also risks leaving many people behind,” he said.
He added that while junior roles are expected to be the most impacted, there is a pressing need for Britain to retrain and upskill people of all different ages to navigate the new landscape.
The CIPD has urged the Government to take proactive steps. It suggests that within the Budget and Employment Rights Bill, the Government should introduce measures to support those in vulnerable jobs and avoid policies that might inadvertently encourage brands to stop hiring individuals.
