Early signs of AI impacting businesses' hiring decisions in UK: Study

Businesses in Britain are dialing back hiring for jobs that are likely to be affected by the roll-out of artificial intelligence (AI), a study found, suggesting the new technology is accentuating a slowdown in the nation's labour market.

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Job vacancies have declined across the board in Britain as employers cut costs in the face of sluggish growth and high borrowing rates, with the overall number of online job postings down 31 per cent in the three months to May compared with the same period in 2022, a McKinsey & Co analysis found.

But it has been the most acute for occupations expected to be significantly altered by AI: Postings for such jobs — like white-collar ones in tech or finance — have dropped 38 per cent, almost twice the decline seen elsewhere, according to the consulting firm.

"The anticipation of significant — albeit uncertain — future productivity gains, especially as the technology and its applications mature, is prompting companies to review their workforce strategies and pause aspects of their recruitment," said McKinsey senior adviser Tera Allas.