Artificial intelligence is having the most significant impact on junior white-collar roles, particularly in industries such as consulting and advertising, according to new research from Goldman Sachs. The Wall Street bank's analysis of over 800 occupations found that AI-related hiring pressures are most pronounced for entry-level workers, with a smaller effect across the wider labour market.
Industries with higher exposure to AI automation, including management consulting, advertising, software publishing, and call centres, have experienced weaker growth in job openings since the second half of 2022. Information and communications services have also seen employment growth slow across major developed economies since 2022.
The findings coincide with a broader weakening of the UK labour market. Office for National Statistics figures show that job vacancies dropped to 707,000 in the three months to July, marking the lowest level in over five years. The number of employees on company payrolls also decreased for the sixth consecutive month in July, and private sector regular wage growth slowed to 2.8%, its weakest rate since October 2020.
Goldman Sachs concluded that AI's employment effects are concentrated in a narrow group of industries and workers, and do not account for the broader UK slowdown. However, the UK is among the leading developed economies for AI adoption, alongside the US, France, and the Netherlands.
Separate research from Lloyds Business Barometer indicates that 54% of UK businesses have seen AI create new roles, with 21% introducing dedicated AI jobs. Additionally, 58% of businesses plan to increase spending on AI skills over the next year, though nearly a third report their workforce lacks the necessary capabilities.