Research carried out by the Chartered Institute of Personnel and Development (CIPD) indicates that one in six employers expect Artificial Intelligence to shrink their workforce over the coming year. Among employers who foresee reductions, 62% identify junior managerial, clerical, administrative and professional roles as those most likely to be lost as Artificial Intelligence is adopted. The CIPD report also highlights a sector difference: 26% of large private sector firms expect overall headcount to fall.
The CIPD has called for urgent action to support people whose roles are most exposed to Artificial Intelligence-driven change. James Cockett, senior labour market economist at the CIPD, said: ‘We need to see a stronger focus by the government and employers on longer-term workforce planning and investment in skills to help people use Artificial Intelligence effectively in their roles or transition into different jobs or occupations as Artificial Intelligence use grows.’ His remarks link the projected employment shifts to the need for coordinated planning and training to manage transitions.
Cockett also warned of immediate pressures on hiring, noting that jobseekers are already feeling the impact of slower recruitment since employment costs rose in the last budget. He added that measures contained in the Employment Rights Bill could further complicate recruitment by making it harder for employers to take on people with less experience and greater development needs. The CIPD message is clear: without targeted investment in skills and proactive workforce planning from both government and employers, the reported expectations of job losses driven by Artificial Intelligence are likely to deepen labour market disruption for the roles identified as most vulnerable.
