Britain is more exposed to artificial intelligence disruption than any other major economy, according to new research published by Deutsche Bank.
The analysis of 30 countries found that the United Kingdom faces a unique economic threat because artificial intelligence risks upending both a large share of its domestic workforce and its critical services export industries.
Deutsche Bank analyst Shreyas Gopal, who compiled the report, stated that if we had to narrow our findings down to one country that stands out, it would be the UK. He highlighted that a high share of the domestic workforce holds roles impacted by artificial intelligence.
Gopal added that from an external balance standpoint, the UK currently exports a lot of services which could be impacted by AI while importing goods and other services. Services make up the overwhelming majority of British economic output and international trade balance.
Threats to white-collar employment
The report highlighted that the next phase of the artificial intelligence transition could be defined by its impact on white-collar roles. Knowledge work across financial, administrative, and corporate sectors is increasingly exposed to software automation.
Deutsche Bank, which authored the report, is one of Europe's largest investment banks and financial services providers. Headquartered in Frankfurt, Germany, the bank regularly publishes international macroeconomic research analyzing global workforce trends and trade balances across major economies.
Concerns over potential workforce disruption have also been raised by senior economic policymakers in London. Bank of England Governor Andrew Bailey warned earlier this year that AI could destroy jobs faster than anyone expects. The Bank of England is Britain's central bank, responsible for setting interest rates and managing monetary stability.
Similar warnings were published in recent findings from the Organisation for Economic Cooperation and Development regarding London's exposure to an AI jobs bloodbath. The Paris-based international body represents 38 developed market economies, tracking employment patterns and economic performance across member nations.
Impact on university graduates and job seekers
Entry-level jobs in traditionally popular graduate professions, such as accountancy and law, are coming under threat because artificial intelligence can now perform many of the routine administrative tasks these roles involve. Accounting and legal practices have historically provided standard entry pathways for thousands of university leavers each year.
New research from the Work Foundation shows that young people struggling to find employment are being rejected by AI bots. The study found that automated recruitment software is shattering the confidence of job seekers who are already finding it increasingly difficult to find work.
The Work Foundation is an employment and labor market research institute based at Lancaster University. Its findings arrive alongside separate figures released this week showing that job openings for university leavers in the UK have fallen to their lowest level in at least a decade.
Corporate division over job cuts
Some financial institutions have already begun axing jobs and replacing workers with artificial intelligence tools. Standard Chartered Chief Executive Bill Winters drew criticism after notoriously describing employees being fired as lower value human capital. Standard Chartered is a multinational British bank headquartered in London, operating extensive commercial and retail banking networks across international markets.
However, business leaders remain divided on whether artificial intelligence will lead to net job losses. AstraZeneca Chief Executive Pascal Soriot expressed skepticism about the idea of AI killing jobs, arguing instead that the technology will help people do their job better. AstraZeneca is a British-Swedish pharmaceutical giant headquartered in Cambridge and one of the largest companies listed on the London Stock Exchange.
