Is AI creating jobs or taking them away?

Most conversations about artificial intelligence in the workplace start from the same worried place: will AI replace people? Will certain roles disappear? What happens to entry-level jobs once AI can do the basics?

It’s not all doom and gloom…
New research suggests AI is also creating jobs, reshaping recruitment priorities and pushing businesses to invest in new skills. According to Lloyds Bank, 54% of UK businesses say AI has already led to job creation within their organisation. At the same time, there’s growing evidence that AI could reduce demand for some junior, administrative and routine roles.

So which is it? It seems the honest answer is: both.

AI is creating new opportunities

Lloyds Bank surveyed 1,200 businesses and found employers are already changing how they recruit and develop people in response to AI.

Nearly a quarter of businesses said they’re placing greater emphasis on AI skills when recruiting, and one in five are creating new roles specifically focused on AI.

Perhaps more tellingly, businesses aren’t only looking outside for talent — many are looking at the people they already employ. The research found that 43% of businesses are trying to bring AI skills into the organisation through recruitment or developing their existing workforce. Almost a third are already providing training, and 58% plan to upskill employees over the next 12 months.

The businesses that benefit most from AI may not be the ones that hire an entirely new workforce — they may be the ones that help their existing people build the skills and confidence to use the technology well.

Having the technology isn’t enough; employees need to understand how and when to use AI, recognise its limitations, and question what it produces rather than take it at face value. That means AI shouldn’t just be a conversation happening in IT departments or boardrooms — it needs to be part of wider conversations about learning and development, workforce planning and culture.

As AI becomes more embedded in day-to-day work, distinctly human skills — critical thinking, communication, problem-solving, judgement — are likely to become more valuable, not less.

But what about junior jobs? Evidence from the Bank of England suggests AI is already helping businesses improve productivity by automating routine tasks and speeding up knowledge-based work — in software development, finance, administration, customer service and professional services
But some employers have also reported cutting graduate recruitment and reducing demand for junior and administrative roles. If AI takes on more of the tasks traditionally handed to junior employees, how will people gain the experience they need to progress?

Entry-level roles have long been where people learn the basics of their profession — building confidence, gaining experience and developing the skills for more senior work. If those opportunities start to shrink, employers will need to rethink how they develop talent from the ground up.

The challenge isn’t just recruiting people with AI skills. It’s making sure the next generation of talent still has a way in.

Productivity up, employment down?

The Bank of England’s latest research suggests businesses expect AI to lift productivity by around 0.9% a year over the next three years — while expecting employment to fall by around 0.4% a year over the same period.
However, nearly 90% of businesses surveyed said AI had made no material difference to their employment levels over the past three years.

The impact is likely to vary a lot. Some organisations will create entirely new roles. Others will redesign existing ones. Some may recruit less in certain areas while hiring more elsewhere. How AI affects your business will depend on what you do, how you use the technology, and the skills already in your team.

The real challenge is preparing your people

Perhaps the more useful question isn’t whether AI will replace people — it’s how it will change the way your people work.

For employers, that means thinking ahead. Worth considering:

– Which tasks could AI support or automate?
– Which roles could change as a result?
– What new skills will the business need?
– Could existing employees be trained or upskilled, rather than replaced?
– How will you keep developing junior talent?
– Are your managers confident enough to lead teams through the change?
– Do employees know what is — and isn’t — appropriate when using AI at work?

AI is moving quickly, but employers don’t need every answer right now.
The businesses most likely to benefit from AI probably won’t be the ones adopting every new tool as fast as possible. They’ll be the ones that take the time to understand how the technology can support their people, and prepare their workforce for what’s ahead.

AI isn’t simply creating jobs or taking them away — it’s changing the world of work. Employers who invest in their people now will be in a far stronger position to adapt to whatever comes next.

If you’d like support thinking through what AI means for your workforce planning, recruitment or people development strategy, get in touch with the Breathing Space team.