AI is hitting UK harder than other big economies, study finds

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Lauren AlmeidaJanuary 26, 2026 at 09:41 AM

AI Summary

medium article 2 min

A recent Morgan Stanley study found that the UK is experiencing net job losses due to AI implementation, a trend more pronounced than in other major economies like the US, Japan, and Germany. While UK businesses reported an 11.5% productivity increase with AI, they also reported an 8% decrease in jobs, primarily impacting early-career positions. This situation is exacerbated by rising costs and taxes, contributing to a four-year high in unemployment. Concerns about job displacement due to AI are growing, particularly among younger workers, with over a quarter of UK workers fearing job loss within five years. Experts, including the Mayor of London and JP Morgan's CEO, are warning of potential mass unemployment and the need for proactive measures to create new jobs and support displaced workers.

Key Entities & Roles

Key Player Opposition Context

Bloomberg 40% Randstad 40% Jamie Dimon 50% Japan 50% Germany 50% Australia 50% United States ×260% Sadiq Khan ×260% London ×260% Morgan Stanley ×270% Artificial Intelligence ×780% UK ×690%

Keywords

artificial intelligence 100% job losses 90% uk economy 80% productivity 60% labor market 60% early-career jobs 50% unemployment 50% economic impact 40%