BSI warns AI-driven efficiencies risk shrinking entry-level job opportunities
A third of business leaders now explore artificial intelligence solutions before hiring new staff, and 41% say AI is already reducing headcount, according to new research from the British Standards Institution (BSI). The findings reveal a global shift towards automation, with entry-level roles among the most affected as companies seek efficiency through AI rather than workforce expansion.
The BSI’s report, Evolving Together: AI, Automation and Building the Skilled Workforce of the Future, surveyed over 850 executives across eight countries and reviewed corporate reports from 123 companies. It found that 31% of organisations now consider AI before recruitment, and 40% expect this to become standard within five years. Around 39% have already reduced junior roles where AI can perform administrative, research and briefing tasks more effectively, with a further 43% anticipating cuts within the next year.
The impact on early career workers is stark. More than half of respondents said they were fortunate to have started work before the widespread adoption of AI, while 35% believe their first jobs would no longer exist today. Yet 55% also argue that the productivity and innovation benefits of AI outweigh the disruption it causes.
Regional trends show marked differences: 38% of UK leaders expect junior role reductions, compared with 61% in China, 57% in Australia and 50% in India. France reports the lowest anticipated figure at 26%. In the UK, 76% of business leaders link AI directly to headcount reductions, underlining how automation is reshaping employment dynamics.
Susan Taylor Martin, BSI’s Chief Executive, said that while AI brings “enormous opportunities,” long-term progress depends on people: “It is ultimately people who power progress.” Kate Field, BSI’s Global Head of Human and Social Sustainability, warned that focusing solely on productivity “risks pulling up the ladder,” undermining opportunities for younger workers and weakening the skills pipeline.
SMEs, which play a critical role in training the next generation, may face particular pressure as automation scales. Larger firms are better positioned to manage the transition, with 46% offering AI learning and development programmes compared with just 23% of SMEs. Laura Bishop, BSI’s Digital Sector Lead for AI and Cybersecurity, said widespread upskilling is essential to realise the potential of Industry 5.0—where humans and intelligent systems work in harmony.
Globally, 89% of business leaders expect AI to transform office jobs, with 77% predicting many roles will be replaced. Yet most accept this trade-off: around three-quarters view AI adoption as vital for competitiveness, even if it disrupts existing employment structures. Sixty-five percent prioritise innovation and growth over preserving traditional roles.
In the UK, 77% of leaders acknowledge job displacement risks, but 69% still support embracing AI to boost productivity and innovation. This balance of caution and optimism reflects a growing consensus that AI is both a disruptor and an enabler of progress.
The BSI’s findings reinforce the need for strategic workforce planning and responsible innovation. To maintain long-term competitiveness, organisations must invest not only in technology but also in people—ensuring that AI enhances rather than replaces human talent. With thoughtful policy and training, the UK can lead in shaping an AI-powered economy that sustains opportunity and shared prosperity.
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