Beyond the Experiment Phase! Lloyds Survey: AI Starts Creating New Jobs in the UK, 54% of Companies Expand Hiring

A survey in the UK shows that a majority of businesses report artificial intelligence (AI) has created new job positions, signaling that companies are gradually moving past the AI experimentation phase and beginning to reshape their recruitment strategies around this technology.

Lloyds' 'Business Barometer' reveals that a quarter of UK employers are increasing recruitment of talent with AI skills, while an additional one-fifth of companies are creating dedicated AI roles. More broadly, 54% of surveyed businesses say AI has driven an increase in job openings.

Amanda Murphy, CEO of Lloyds Corporate and Commercial Banking, stated that businesses must shift focus from acquiring AI tools to 'cultivating the skills, corporate culture, and confidence needed to effectively use AI.' The survey was conducted in July and included 1,200 businesses.

The findings highlight a shift in business operations. For companies leveraging AI effectively, this transformation promises gains in productivity and operations, but it could also impact workers across various sectors of the labor market.

Online recruitment data indicates AI is creating a 'two-speed' job market: on one hand, companies are hiring senior talent with AI expertise, while simultaneously reducing positions in other areas under pressure from high labor costs.

Since 2022, demand for roles vulnerable to AI—such as software developers and consultants—has sharply declined. Among CEOs, the view that 'AI will ultimately reduce job opportunities' has now become mainstream.

Analysis by officials at the Bank of England (BOE) also shows that productivity is rising in companies adopting AI, but these productivity gains come at the cost of reduced employment opportunities.

In the first few weeks after taking office, the newly appointed UK Prime Minister Andy Burnham took a tougher stance on AI, particularly warning about its impact on the job market and young people.

AI is also a major concern for BOE officials. Governor Andrew Bailey emphasized that the challenge for businesses is not just implementing the technology, but using AI to enhance productivity.

AI holds the potential to help the UK escape economic stagnation, but its impact on productivity may follow a 'J-curve,' as businesses need time to learn how to use AI effectively.

The 'J-curve' refers to a pattern where an indicator initially declines before rising, tracing a shape similar to the letter 'J'.

In addition to hiring AI-skilled talent, surveyed companies under the Lloyds study report they are launching or expanding AI training programs for existing employees.

Among businesses with revenues exceeding £10 million (approximately $13.6 million), two-thirds say their current employees already possess the AI skills needed to meet business demands. When extended to all UK businesses, the proportion is slightly above half. Moreover, over 70% of large enterprises say they plan to increase AI investment to boost productivity.