By Lauren Almeida
Publication Date: 2026-01-26 08:41:00
The UK is losing more jobs than it creates due to artificial intelligence and is being hit harder than rival major economies, new research shows.
British companies reported that AI led to a net job loss of 8% in the last 12 months – the highest rate among other leading economies such as the US, Japan, Germany and Australia, according to a study by investment bank Morgan Stanley.
The study, provided to Bloomberg, surveyed companies that have been using AI for at least a year in five industries: consumer staples and retail, real estate, transportation, healthcare equipment and autos.
It found that UK companies reported an average productivity increase of 11.5% using AI. U.S. companies posted similar gains, but added more jobs than they lost.
This suggests that UK workers are particularly hard hit by the rise of AI, with higher costs and taxes also weighing on the labor market.
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