UK firms cut hiring for AI-exposed roles, tech and finance jobs fall 38%

As AI adoption rises, UK companies are pulling back from hiring in vulnerable sectors like tech and finance, with job listings down nearly double the broader market decline

British companies are becoming increasingly cautious about hiring for roles that are likely to be disrupted by artificial intelligence (AI), Bloomberg reported, citing findings from a recent McKinsey & Co study. The findings suggest that AI is amplifying the broader slowdown in the UK’s employment market.

 

Drop in job postings for AI-sensitive roles

 

Job listings in the UK have seen a general decline as employers attempt to rein in spending amidst stagnant economic growth and high borrowing rates. The study stated that overall online job advertisements fell by 31 per cent in the three months leading up to May, compared with the same timeframe in 2022.

 

 

However, the decrease has been especially pronounced in positions expected to be heavily affected by AI. Roles in areas such as technology and finance saw a 38 per cent reduction — nearly double the average fall, according to McKinsey. This trend is putting additional strain on the UK’s labour market at a time when tax hikes are already triggering cutbacks in lower-skilled sectors like hospitality and retail.

 

AI-exposed occupations see sharpest declines

 

McKinsey's data shows over the past three years, the demand for professionals such as software developers, consultants, and graphic designers has decreased by more than 50 per cent. While some of this contraction may stem from industry-specific challenges and wider economic pressures, McKinsey noted that even in sectors like IT and professional services — where business performance remains robust — job opportunities have continued to fall.

 

AI already influencing hiring patterns

 

According to Pawel Adrjan, director of EMEA economic research at the Indeed Hiring Lab, employers tend to cut hiring in fields that involve building or using AI tools. For instance, job listings in mathematics — primarily encompassing roles in data science and analytics — have halved since pre-pandemic times, despite being among the highest for AI-related mentions in job descriptions. In contrast, sectors such as real estate and education, where AI references are minimal, have seen growth in vacancies.

 

Entry-level positions face pressure

 

Entry-level positions, particularly those involving repetitive tasks like document review or meeting summarisation, are increasingly at risk of automation. Job postings for roles such as internships, apprenticeships, or junior positions not requiring degrees have plummeted by nearly one-third since the introduction of ChatGPT at the end of 2022, according to Adzuna.

 

AI expert predicts major job displacement by 2045

 

In an interview with The Guardian, Adam Dorr, research director at RethinkX, warned of a major shift in employment driven by AI and robotics. He stated that by 2045, most human jobs could become "obsolete", as machines would be capable of performing nearly all tasks faster and more cost-effectively.

 

Dorr and his team have analysed over 1,500 significant technological upheavals and concluded that once a new technology becomes established, it typically replaces the existing system within 15 to 20 years.

 

Microsoft cuts thousands of jobs, focuses on AI upskilling

 

Microsoft has laid off over 15,000 employees in 2025, with the most recent round alone accounting for approximately 9,000 job losses. The cuts have primarily affected divisions such as Xbox and sales. The company is now encouraging its remaining staff to develop their AI-related skills as it pivots more aggressively towards the new technology.