Fri, 19 Dec 2025

Fri, 19 Dec 2025 AI likely to displace jobs, says Bank of England governor

Andrew Bailey says workers need to be trained to move into jobs that use AI, but adds it might not lead to mass unemployment.

* Governor of the Bank of England, Andrew Bailey, warns that widespread adoption of AI may displace people from jobs in a similar way to the Industrial Revolution.
* The UK needs training, education, and skills to prepare workers for jobs that use AI, Bailey says.
* Younger, inexperienced professionals are having difficulty securing entry-level roles due to AI, potentially changing the pipeline of new entrants into the workforce.
* Official figures show the UK unemployment rate rose to 5.1% in the three months to October, with younger workers particularly affected.
* The growth of AI may lead to fewer junior staff being hired, particularly in sectors such as law, accountancy, and administration.
* Firms are already using AI models to automate tasks that were previously done by consultants, reducing the need for human workers.
* Bailey predicts AI will have a similar effect on employment as the Industrial Revolution, displacing people from jobs but not causing mass unemployment.
* The Bank of England is preparing for this potential impact and sees AI as a key driver of UK economic growth, with significant potential to improve productivity.
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