AI Threatens UK Jobs, Recruitment Chiefs Warn

More than half of UK recruitment managers believe artificial intelligence is negatively impacting job opportunities, with 52 percent stating that AI is costing jobs. Research from the recruitment agency Reed indicates that 36 percent of hiring managers have already observed AI contributing to lower recruitment numbers within their own organizations.

These findings align with concerns raised by the head of the International Monetary Fund, Kristalina Georgieva, who recently described AI as a "slow-moving tsunami" poised to disrupt global employment and particularly affect opportunities for younger generations. Georgieva estimated that approximately 40 percent of all jobs worldwide could be augmented, downgraded, or eliminated by the technology.

In response to these trends, Reed CEO James Reed is advocating for increased taxes on companies that replace human workers with AI or automation, under the slogan "back humans, tax robots." Reed emphasized that AI's impact on recruitment and the types of roles needed by businesses is already being felt by both hiring managers and jobseekers. He noted that while AI has the potential to enhance productivity and create new opportunities, its risk of reducing available jobs, especially for those entering the labor market, must be addressed.

"We need to get the balance right," Reed stated. "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 further explained that the "Back humans, tax robots" initiative aims to ensure technological progress benefits people rather than rendering a generation redundant. The focus, he added, should be on investing in human potential, creating pathways into employment, and ensuring that the benefits of AI support future generations.

Despite concerns about AI's broader impact on job availability, many hiring managers are actively employing AI within their own recruitment processes. The most frequent applications include screening CVs (used by 41 percent of hiring managers), skills matching and writing job advertisements (34 percent each), internal administration (28 percent), interview scheduling (27 percent), and candidate sourcing (26 percent). Only 17 percent of organizations reported not using AI in their recruitment efforts.