AI-Driven Productivity Growth Comes at Job Cost for UK Firms

The Bank of England (BOE) has found that British firms developing and using artificial intelligence (AI) are becoming more productive, but at a cost to jobs.

According to BOE analysis, software and IT consulting firms have increased their contribution to annual productivity growth tenfold since the Covid-19 pandemic, contributing 0.1 percentage point in 2023-2025.

Firms adopting AI are also becoming more productive, particularly in sectors like office administrative and business services where repetitive tasks can be automated.

However, some of this increase comes at the expense of job opportunities, with vacancies for roles most exposed to AI falling by 15% over the past three years.