London Mayor Warns of AI Threat to Over a Million Jobs
London Mayor Sadiq Khan has issued a stark warning that over a million Londoners could lose their jobs due to the rapid advancement of artificial intelligence (AI). In a report titled “London’s workforce exposure to generative artificial intelligence,” he highlights the significant risk that AI poses to the city’s labor market.
According to the findings, a fifth of London’s workforce is either highly or significantly exposed to AI. This proportion is much higher than the rest of the UK, indicating that Londoners face a greater threat compared to other regions. The report was released alongside the announcement of a new taskforce aimed at addressing the challenges posed by AI in the workplace.
The mayor emphasized that while AI may not necessarily lead to job losses, it could still cause substantial damage if not managed properly. He pointed out that 7% of large UK businesses have already used AI to reduce staff, underscoring the need for proactive measures.
“Given the numbers of Londoners that are exposed – and the finding that 7% of large UK businesses have already used AI to cut staff – we cannot afford to be complacent,” said Mr. Khan. “If we take a hands-off approach, AI could cause significant harm to London’s labour market.”
High and Significant Exposure
The report reveals that more than 300,000 Londoners are ‘highly exposed’ to AI, with the technology capable of performing a large share of their daily tasks. An additional 748,000 workers are deemed ‘significantly exposed,’ meaning some aspects of their jobs could be automated by AI. Together, these groups account for over a million Londoners and more than a fifth of the city’s workforce.
In comparison, 46% of London’s workers (around 2.4 million people) are in roles where AI could perform a meaningful share of their tasks. This figure is notably higher than the UK average of 38%, placing London’s workforce at a greater risk.
Most Vulnerable Roles
Administrative and clerical roles are the most vulnerable to AI disruption. However, white-collar occupations are also highly exposed. The professional services sector, which includes banking, law, and accounting, is a major contributor to the UK’s economy, with London serving as its hub. This sector accounted for 81% of the UK’s economic output last year.
Moreover, 83% of British workers are employed in the services sector, the highest proportion among large developed economies. This high concentration of service-based jobs makes London particularly susceptible to AI-driven changes in the labor market.
Gender Disparities
The report also highlights gender disparities, noting that women are overrepresented in administrative and clerical roles, which puts them at a greater risk of being affected by AI. It found some indications that employers are hiring fewer people in these roles, though this could also reflect a cooling labor market rather than a direct impact of AI.
Taskforce to Address AI Challenges
To tackle these challenges, Mr. Khan has established a taskforce led by Baroness Martha Lane-Fox, a tech entrepreneur and co-founder of last.minute.com. The group will include members from the business community, trade unions, think tanks, and the AI industry. The taskforce aims to harness the potential of AI while mitigating its negative impacts on the workforce.
Mr. Khan cited studies showing that AI could create more jobs than it destroys in the long term. By taking a proactive approach, the taskforce hopes to ensure that London remains competitive in the evolving job market.
