AI Could Create Massive Job Displacements in UK as Survey Warn of Possible AI Burst in 2026
AI Could Create Massive Job Displacements in UK as Survey Warn of Possible AI Burst in 2026
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The widespread adoption of AI technology is likely to displace people from jobs in a way seen during the Industrial Revolution, the governor of the Bank of England warned, as concerns grow about the impact of the technology on younger people entering the labor market.
According to Anadolu Agency, Andrew Bailey said the UK needs to have the “training, education, (and) skills in place” to help workers transition into jobs that use AI.
AI is increasingly embedded across the economy, enabling computers to process vast amounts of data, identify patterns and follow complex instructions.
While many see its potential to boost productivity, there are growing fears about its effect on jobs.
Official figures released this week showed the UK unemployment rate rose to 5.1% in the three months to October, with young people hit hardest.
The Office for National Statistics reported that the number of unemployed 18-24-year-olds increased by 85,000 over the period, the largest rise since November 2022.
Some critics have blamed increases in the minimum wage and higher taxes for making firms more reluctant to hire junior staff.
Others argue AI is already reducing the need for entry-level workers, particularly in professions such as law, accountancy and administration.
Meanwhile, the cooling of the artificial intelligence (AI) boom and the decline of tech valuations pose the biggest risk for next year, a recent Deutsche Bank survey showed.
Of the 440 respondents in the survey, 57% cited the AI bubble as the biggest risk, as concerns over AI and tech valuations surpassed all other risks to market stability in 2026.
