AI drives 8% net job loss in UK, highest among major economies, Morgan Stanley study finds

A new study from investment bank Morgan Stanley, shared with Bloomberg, indicates that artificial intelligence has resulted in a net loss of 8% of jobs in the United Kingdom over the last twelve months. This marks the highest negative impact among major economies surveyed, outpacing countries like the United States, Japan, and Germany.

Productivity Gains Amid Job Cuts

The research surveyed companies across five sectors—consumer staples and retail, real estate, transport, healthcare equipment, and automobiles—that have used AI for at least one year. While British businesses reported an average productivity increase of 11.5% due to AI adoption, similar to gains seen in the U.S., the UK labor market experienced a net decline in employment. In contrast, American firms managed to create more jobs than they eliminated.

Early-Career Roles Most Vulnerable

The study notes that British workers are being disproportionately affected by AI-driven restructuring, with higher operational costs and taxes also weighing on employment. According to the surveyed companies, positions requiring two to five years of experience—typically early-career roles—were the most likely to be cut in the UK, signaling a shift in hiring priorities and workforce composition.