How 3 million jobs in the UK are at risk from AI – and what must happen now
Londen, woensdag, 26 november 2025.
By 2035, up to 3 million jobs in the United Kingdom could disappear due to the rise of artificial intelligence, particularly in sectors such as administration, logistics, and customer service. The most alarming fact? According to an analysis by the UK Office for Budget Responsibility, 40% of all current jobs in the UK will be affected by AI by 2035, with the greatest impact on low-skilled workers. While technology is advancing at breakneck speed, the skills gap is widening: only 39% of workers have access to AI training since 2023, despite 70% expressing a desire to receive it. The government and businesses are now responding with initiatives such as the AI Skills Passport, a free programme by EY and Microsoft designed to prepare young people worldwide for an AI-driven future. Yet pressing questions remain: is there sufficient time and coherence in policy to ensure both the economy and its people benefit?
The future of work in the UK: 3 million jobs at risk from AI
According to an analysis by the UK Office for Budget Responsibility (OBR), up to 3 million jobs in the United Kingdom could be lost by 2035 due to the rapid rise of artificial intelligence (AI) [2]. This projection is based on a machine learning model using data from 2020 to 2024, including employment figures, sectoral growth, and automation rates by occupation [2]. The OBR anticipates that AI-driven automation will particularly affect roles in administration, customer service, administrative work, and lower-tier production [2]. The financial services sector faces the highest risk of automation, followed by administrative and call centre functions [2]. Since 2021, jobs in sales and customer service have declined by over 10%, while those for machine operators and plant technicians have dropped by 5% [1]. The analysis focuses on AI-driven automation within sectors such as administration, call centres, logistics, and financial services in the UK [2]. The predicted impact of AI on the labour market is 3 million jobs at risk by 2035 [2]. According to NFER, between 1 and 3 million jobs in shrinking sectors could vanish by 2035 if current trends continue [1]. These shifts in the labour market demand new training programmes, job reclassification, and measures for social protection [1].
Sectors at risk: where AI has the greatest impact
Sectors most vulnerable to automation include administration (52% of jobs at risk), logistics (48%), and retail (41%), with specific risks for roles such as accountants, dispatch staff, and sales associates [2]. The majority of 2023 graduates who took jobs without a degree ended up in retail rather than administrative or office-based positions [1]. According to the Institute for Fiscal Studies (IFS), there is a lack of timeline and clarity regarding funding for basic and further education, which casts doubt on the consistency of the UK government’s skills training strategy [1]. The employers’ organisation CBI warns that ‘without structural investment in training and reskilling, the labour market could see a 10% increase in unemployment by 2035’ [2]. The UK government has announced a national AI action plan on 15 January 2025, committing £2.3 billion to reskilling and digital skills development for the workforce by 2030 [2]. It is expected that 40% of current jobs in the UK will be influenced by AI technologies by 2035, with the highest impact in the public sector and retail [2].
The gap between desire and reality: the skills divide
A significant gap exists between workers’ desire for AI training and their actual access to it. According to Microsoft’s Work Trend Index 2024, 70% of workers want AI training, but only 39% have received it [3]. This figure is based on data from 2023, where 70% of workers expressed a wish for AI training, yet only 39% had access to it [3]. According to a report by Prospects at Jisc (published on 2025-11-24), graduates from the summer of 2023 had a 15-month unemployment rate of 6.2%, a decline from 5.6% in 2022 and 5% in 2021 [1]. The percentage of 2023 graduates securing a full-time job after 15 months was 56.4%, a decrease from 59% in 2022 [1]. The proportion of 2023 graduates entering professional roles dropped to 71.9%, a clear decline compared to previous years [1]. Graduates lacking the right skills are disproportionately affected by these changing labour market dynamics [1].
Bridging the gap: the EY and Microsoft AI Skills Passport initiative
To close the digital divide, EY and Microsoft have launched the AI Skills Passport: a free online programme preparing young people worldwide for an AI-driven future [3]. The programme has been rolled out across 16 countries, including the United Kingdom, the United States, India, Italy, Greece, Belgium, South Africa, Ireland, Switzerland, Cyprus, Australia, New Zealand, Fiji, Papua New Guinea, Sweden, and China [3]. Plans are in place to expand the rollout to additional countries and offer translations in five languages by 2026 [3]. The collaboration between EY and Microsoft is a powerful example of how organisations can work together to drive meaningful social change and shape the future with confidence [3]. The AI Skills Passport aims to equip young people and underrepresented communities with the AI experience needed to thrive in the digital age, while simultaneously sharing the skills that will be essential tomorrow [3]. Dirk Stroes, EY Netherlands People Consulting Leader, emphasises that ‘the speed at which AI is transforming our world is unprecedented’ and that building the right skills is a societal responsibility [3].
The impact of AI on journalism: from automation to accountability
In journalism, AI is playing an increasingly significant role in news production, with applications such as automated news articles, fact-checking, summarising lengthy documents, and generating editorial plans. The rise of generative AI has led to a 2,000% increase in job postings mentioning AI skills since March 2023—a twentyfold rise [3]. This points to a profound transformation of the economy, where the balance between innovation and workforce protection becomes critical [1]. While AI can enhance the efficiency of news production, it also intensifies pressure on individuals tasked with producing reliable information [1]. The technology can generate stories rapidly, but responsibility, context, and ethical decision-making remain heavily dependent on human oversight. The central question is whether journalism can adapt to these changes without compromising its integrity [1].