Artificial intelligence appears to cut more jobs than it creates

https://workplaceinsight.net/artificial-intelligence-appears-to-cut-more-jobs-than-it-creates/

Publish Date: 2026-01-27 02:47:00

Source Domain: workplaceinsight.net

Job Loss Due to AI: According to Morgan Stanley’s research, there has been a net loss of about 8 percent of roles in the UK due to the deployment of artificial intelligence over the past year, indicating more jobs lost than created.
Job Creation vs. Redundancies: While there has been an increase in hiring for AI-linked roles, such as data oversight and technical positions, this hasn’t balanced out the overall job cuts as other positions have been reduced or vacancies left unfilled.
Impact on Mid-career Workers: Mid-career workers (ages 2-10 years of experience) have faced the most pronounced losses and are also more likely to be rehired, retrained, or redeployed within organizations due to automation.
Productivity Gains: Despite job losses, there has been an estimated 11 percent increase in productivity, with employers noting enhanced efficiency, speed, and the ability to scale tasks without proportionate staffing increases.
Sector-specific Employment Trends: The UK labor market is experiencing a broader slowdown in hiring, especially in professional and technical roles where AI is increasingly used, exacerbated by economic pressures.
Job Security Concerns: There is growing anxiety among UK workers, particularly younger employees, regarding job security and potential role elimination due to AI advancements.
Uneven Effects: The research highlights that the influence of AI on employment is uneven, impacting job design, skills requirements, and workforce structure before overall job growth materializes.