ARTIFICIAL intelligence (AI) is beginning to reshape hiring across Britain, with more than half of businesses surveyed saying the technology has created jobs, even as firms cut back in some AI-exposed roles.
The Lloyds Business Barometer found that 54 per cent of UK businesses said AI had contributed to job creation, while a quarter said they were increasingly hiring candidates with AI skills.
Bloomberg reported on Tuesday that one in five businesses said they were creating new roles specifically focused on artificial intelligence, suggesting companies are moving beyond experimentation and adapting their workforces around the technology.
Amanda Murphy, chief executive of business and commercial banking at Lloyds, said companies needed to move beyond simply gaining access to AI.
Firms must shift their focus towards “building the skills, culture and confidence to use it effectively”, she said.
The survey, which polled 1,200 companies in July, highlights the increasingly uneven impact of AI across the labour market, with businesses creating opportunities for workers with relevant skills while reducing hiring in other areas.
Online job postings point to an emerging two-speed economy, with companies recruiting more senior workers equipped with AI expertise while cutting back elsewhere as high employment costs continue to weigh on businesses.
Hiring for AI-exposed positions such as software developers and consultants has fallen sharply since 2022, while the view that artificial intelligence will ultimately reduce employment has become increasingly widespread among corporate leaders.
Analysis by Bank of England staff has also found that businesses using AI are becoming more productive, although some of those productivity gains have come at the expense of jobs.
New Prime Minister Andy Burnham has adopted a more cautious approach to AI during his first weeks in office, particularly in warnings over its potential impact on employment and young people.
The technology is also a growing focus for Bank of England officials, with Governor Andrew Bailey highlighting the challenge of moving from simply adopting AI to using it effectively as a driver of productivity.
AI could help Britain overcome its prolonged growth weakness, although its impact on productivity may follow a so-called J-curve, with businesses requiring time to learn how to integrate the technology effectively before significant gains emerge.
Beyond hiring for AI expertise, businesses surveyed by Lloyds said they were also introducing or expanding training programmes for existing employees.
Two-thirds of businesses with annual turnover above £10 million said their existing workforce possessed the AI skills required to meet business needs, compared with just over half of businesses overall.
More than 70 per cent of large businesses also said they planned to increase investment in AI to improve productivity. - August 18, 2026
