AI is destroying job opportunities in Britain, recruitment chiefs warn

More than half of managers responsible for recruitment say artificial intelligence is costing jobs.

Research from recruitment agency Reed found 52 per cent of hiring managers say the technology is leading to fewer job opportunities in the UK.

Over a third, or 36 per cent, admit it is already contributing to lower recruitment in their own organisations.

The report comes after the head of the International Monetary Fund last week described AI as ‘a slow-moving tsunami’ that will wipe out jobs around the world and destroy opportunities for the young in particular.

At the start of the Fund’s annual meetings in Bangkok, Kristalina Georgieva said around 40 per cent of all jobs will eventually be ‘augmented, downgraded or eliminated’ by the technology.

Digital generated image of  robots working on laptops

‘It is a slow-moving tsunami but a tsunami nonetheless,’ she said. ‘It is a transformative technology. It so completely changes how we work, how we live.

‘Love it, hate it, or fear it. It is here, and we are already seeing the first wave of impact.’

Under the slogan ‘back humans, tax robots’, Reed boss James Reed is now calling for increased taxes on companies that replace human jobs with AI or automation.

He said: ‘AI is no longer some distant prospect for the world of work. Hiring managers are already seeing its impact on recruitment and the kinds of roles businesses need, and jobseekers are feeling the impact.

‘AI has the potential to bring some benefits, helping people work more productively and creating new opportunities. 

'But we must also face up to the risk that it reduces the number of jobs available, particularly for people trying to get their first foothold in the labour market.

‘We need to get the balance right. If businesses can reduce costs by replacing people with AI, while employing people becomes more expensive, we should question whether our tax system is keeping pace with the changing world of work.’

He added: ‘”Back humans, tax robots” is about making sure that technological progress works for people, rather than making a generation redundant. We should be investing in human potential, creating routes into work and ensuring that the benefits of AI help support the next generation.’

While hiring managers are concerned about AI’s impact on job opportunities, many are already using it in their own recruitment processes.

The most common applications are screening CVs, where 41 per cent use AI, followed by skills matching and writing job adverts at 34 per cent each, internal administration (28 per cent), interview scheduling (27 per cent) and candidate sourcing (26 per cent).

Just one in six, or 17 per cent, said their organisation was not using AI in recruitment.

Reed said: 'The rise of AI is undoubtedly affecting the jobseeking process.'

DIY INVESTING PLATFORMS

AJ Bell

AJ Bell

Easy investing and ready-made portfolios

Hargreaves Lansdown

Hargreaves Lansdown

Free fund dealing and investment ideas

interactive investor

interactive investor

Flat-fee investing from £4.99 per month

Freetrade

Freetrade

Investing Isa now free on basic plan

Trading 212

Trading 212

Free share dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.