The increasing adoption of Artificial Intelligence (AI) in workspaces has hit Britain “hardest” with Briton businesses reporting net job losses down 8%- the highest among its peers- US, Japan, Germany and Australia.
The latest study comes from leading investment bank Morgan Stanley, claiming the impact of AI on workplaces has resulted in the UK “losing more jobs than creating”, as per a recent report in Bloomberg.
The report comes at a time when the official unemployment rate is at 5.1% this quarter in the UK, highest ever since 2021.
According to the Morgan Stanley report findings, the impact of AI led to 8% net job losses- the highest among its peers Japan, Germany, Australia and U.S., and two times the international average.
The survey studied businesses from five key industries- retail, real-estate, healthcare equipment, transport and automobiles- that have adopted AI for at least one year. Study revealed that while the UK also reported 11.5% increase in work productivity due to AI impact, she still lost more jobs than creating new ones.
The Bloomberg report observed that this significant increase in work productivity for conglomerates due to AI has come at a significant cost to the human workforce.
A recent report in Reuters has observed that job vacancies in the UK have continued to fall till December 2025 amid an overall deteriorating market conditions amid greater political instability.
The rise in job cuts has only led to frustration among the young Britons who have taken the brunt of AI impact. A recent report by international recruitment agency Randstad, published in The Guardian, observed that more than 25% of UK workers worry about AI replacing them completely.
