Deloitte report: over half of uk's large firms plan to replace workers with AI in the next year

A Deloitte report, released on Wednesday, reveals that 52% of UK chief financial officers expect to use artificial intelligence to cut jobs within the next year. Over two-thirds (67%) of respondents said they have only achieved a quarter of the transformation they anticipated from AI. The findings highlight a concerning trend of stagnant employment growth in the UK, posing political challenges for Prime Minister Andy Burnham's Labour government. AI adoption, combined with high labor costs, is leading firms to avoid hiring during expansion, resulting in rising long-term unemployment and a youth unemployment rate at its highest level in a decade. Kanishka Narayan, the UK's AI minister, acknowledged the public's fears about job displacement, stating, 'I understand people's concerns about their jobs and the future of the next generation.' However, only a third of CFOs believe AI will boost profits in the next year. The survey, conducted between September 17 and October 1, included 66 CFOs, with 12 from FTSE 100 companies and 25 from FTSE 250 firms. Meanwhile, London-based training platform Multiverse, founded by Euan Blair, reported that companies struggle to integrate AI investments with employee upskilling. Blair noted, 'Few companies understand what employees can do with AI, leading to wasted spending.' Companies are increasing AI tool purchases without adequately training staff to use them effectively.