Artificial intelligence costs more UK jobs than it creates

AI is causing more job losses than gains in the UK, with an 8% reduction in roles reported over the past year. This figure is twice the average of similar economies like the US, Germany, Japan, and Australia.

Morgan Stanley's research reveals that 23% of jobs in the UK have been eliminated or will not be replaced. The US benefits more, with AI creating more jobs than it displaces.

UK companies have experienced an 11% productivity increase from AI investment, but hiring has slowed amid economic uncertainty. Job vacancies have declined by a third since 2022, equating to 500,000 roles lost. Morgan Stanley suggests this trend may herald further negative impacts on employment as AI advances.