The rapid rollout of artificial intelligence across UK workplaces is already reshaping organisational structures, with one in five employers reporting they have cut mid-level roles as a direct result of automation. New research suggests this trend could have long-term consequences for skills development, succession planning and leadership pipelines.
A study by consultancy Barnett Waddingham found that 71 percent of UK employers have invested in AI or automation this year, mainly to boost cost efficiency and productivity. More than half have either built or purchased AI assistants for core tasks, while only 5 percent reported having a blanket ban on AI use across their organisation.
The findings, based on responses from 500 HR and business leaders, show the UK is entering a phase of widespread AI adoption, but not without disruption.
Job losses spread across levels
Almost one in five employers (18 percent) said they had made redundancies at the mid-level tier due to AI implementation. A further 17 percent had cut junior roles, and 15 percent reported reductions among senior staff. The job changes span organisations of all sizes and come at a time when vacancy rates are falling, and the number of active jobseekers is rising.
Barnett Waddingham noted that the job cuts reflected both growing confidence in AI tools and a change in how routine work is distributed. But the firm warned that without deliberate planning, employers may unintentionally weaken their own long-term workforce capability.
Paul Leandro, partner and head of people risk at Barnett Waddingham, said employers needed to see AI as a support system rather than a replacement for skilled staff. “AI must be an enabler, not a substitute for a skilled workforce,” he said. “The employers who gain the most from automation will be those who redesign roles so people and AI can work in unison, strengthening capability rather than eroding it.”
Fears over a broken talent pipeline
The most pressing concern among leaders was not simply the number of jobs being cut, but the changing nature of career progression, the research found. Two-thirds of employers (66 percent) said they worried that AI would reduce opportunities for junior staff to gain the kind of early experience needed to progress. With routine entry-level tasks now increasingly handled by automation, many fear the traditional learning curve from junior to senior roles may be disrupted or disappear entirely.
Employers also expressed concern about their future access to skilled talent. Nearly two-thirds cited immigration restrictions (64 percent) and falling birth rates (63 percent) as risks to domestic and overseas candidate supply. An even larger share (68 percent) flagged rising long-term sickness as a contributor to growing talent shortages.
The report warned that removing or hollowing out junior roles would make it harder for employers to identify and develop future leaders. Without younger workers gaining real-world experience and exposure to decision-making, succession planning may stall just as the current generation approaches retirement.
Redesign, not removal
Barnett Waddingham urged employers to rethink how early-career roles are structured, rather than removing them entirely. This includes designing junior jobs that combine AI literacy with practical decision-making, helping staff build the kind of judgement and contextual thinking machines cannot replicate.
Leandro said the next phase of automation should focus on evolution, not elimination. “As more routine tasks are automated, the focus shouldn’t be on removing early-career roles, but evolving them,” he said. “Businesses need employees who understand how AI works in practice, who can apply judgement, and who can develop the experience required to become future leaders. After all, experience and expertise, not just algorithms, will determine which businesses thrive in an AI-driven future.”
Competitive advantage vs workforce risk
The research also revealed a disconnect between AI ambition and workforce resilience. While 36 percent of employers saw AI as the biggest potential driver of competitive advantage, only 20 percent cited talent retention or recruitment as equally important. Observers have warned that short-term productivity gains from automation may come at the cost of long-term capability if the human side of work is neglected.
Only 62 percent of businesses reported that they were training staff to use AI tools, suggesting that many employees are being asked to work alongside new technologies without structured support. Experts have warned that poor implementation without skills development can lead to uneven outcomes and widening inequalities across roles.
Barnett Waddingham called on employers to ensure that AI strategies are aligned with workforce planning. It includes reviewing role design, investing in training and ensuring that automation does not erase the early experiences needed to sustain leadership pipelines.
As the adoption of AI continues to accelerate, the report suggests the employers most likely to succeed will be those who treat automation not as a replacement but as a complement to human capability.
