UK Firms Embrace AI as Job Market Adapts

The UK's job market is undergoing significant changes as businesses adapt to the growing impact of artificial intelligence (AI). According to a recent survey by Lloyds, more than half of companies said AI has created new jobs, with one in five businesses even creating roles specifically focused on AI. However, hiring for certain positions exposed to AI has decreased.

Amanda Murphy, chief executive of business and commercial banking at Lloyds, emphasized that companies must move beyond simply gaining access to AI and focus on 'building the skills, culture and confidence to use it effectively'. The survey polled 1,200 companies in July and found a growing divide between businesses creating opportunities for workers with relevant AI skills while cutting back elsewhere.

The analysis by Bank of England staff has also revealed that businesses using AI are becoming more productive, but some productivity gains have come at the expense of jobs. The new Prime Minister Andy Burnham has expressed caution about AI's potential impact on employment and young people.