Women in tech and finance at higher risk from AI job losses, report says

Women working in tech and financial services are at greater risk of losing their jobs to increased use of AI and automation than their male peers, according to a report that found experienced females were also being sidelined as a result of “rigid hiring processes”.“Mid-career” women – with at least five years’ experience – are being overlooked for digital roles in the tech and financial and professional services sectors, where they are traditionally underrepresented, according to the report by the City of London Corporation.The governing body that runs the capital’s Square Mile found female applicants were discriminated against by rigid, and sometimes automated, screening of their CVs, which did not take into account career gaps related to caring for children or relatives, or only narrowly considered their professional experience.To reverse the trend, the corporation is calling on employers to focus on re-skilling female workers not currently in technical roles, particularly those in clerical positions most at risk of being displaced by automation.It is estimated that about 119,000 clerical roles in tech and the financial and professional service sectors, predominantly carried out by women, will be displaced by automation over the next decade. Reskilling those affected by these job losses could save companies from making redundancy payments totalling as much as £757m, the report found.Upskilling staff would allow employers to focus on candidates’ potential rather than their past technical experience, the report found. It is estimated that up to 60,000 women in tech leave their roles each year for reasons including lack of advancement, lack of recognition and inadequate pay.Dame Susan Langley, the mayor of City of London, said: “By investing in people and supporting the development of digital skills within the workforce, employers can unlock enormous potential and build stronger, more resilient teams. Focusing on talent, adaptability and opportunity will ensure the UK continues to lead on innovation and remains a global hub for digital excellence.”Recent surveys have shown that as many as a quarter of UK workers are worried that their jobs could disappear in the next five years because of AI, according to a poll by the international recruitment company Randstad. Union leaders have called on companies to commit to investing in workforce skills and training.The City of London Corporation found that women were being overlooked for roles even as difficulties in hiring talent meant more than 12,000 digital vacancies in these sectors went unfilled in 2024.Companies have tried to deal with worker shortages by increasing wages above the national average, but the report found that higher pay rates would not solve the problem. It warned that the widening digital talent gap was forecast to last until at least 2035 and that under this scenario the UK could miss out on more than £10bn of economic growth.