December 15, 2025

Artificial Intelligence and its Implications for the UK Labour Market

We recently published a report on our website examining the impact of artificial intelligence (AI) on education, and what this means for current school-age children who comprise the emerging workforce.

The report concluded that although AI has remarkable potential when used as a tool to assist learning, it should not be used to replace working altogether as this may impact students’ ability to develop the analytical and critical thinking skills central to becoming independent thinkers and active citizens.

This piece is a continuation of the Harrison Foundation’s investigation into AI – this time analysing AI’s impact on the UK labour market and how young people should be preparing to enter a workforce increasingly shaped by AI. The UK Government predicts that by 2035, 10 million workers will be using AI in their daily work. Those not adequately informed about, or unwilling to develop AI literacy, therefore place themselves at increased risk of being left behind in the unfolding AI revolution.

Broadly speaking, jobs involving routine or repeated tasks – such as writers, translators, and proofreaders – are most at risk of being replaced by AI, whilst roles requiring a higher level of human intelligence or expertise – such as healthcare workers, educators, and skilled tradespeople – are least at risk and are, in fact, predicted to expand. The advanced manufacturing and green industries, in particular, are creating thousands of new job opportunities across the UK, complemented by those emerging from new AI Growth Zones. In September 2025, the Northeast secured its own £30 billion AI Growth Zone, set to create thousands of jobs, particularly in the areas of construction, engineering, and AI research.

This combination of reduction and expansion creates a peculiar sense of fear and relief when thinking about future careers and job security. Young people must, therefore, remain vigilant to these developments, and strategic and deliberate in their educational choices if they are to align themselves with, and grow alongside, the sectors where opportunity is emerging. But how exactly should this vigilance be attained? Part of the challenge is that guidance around both the use and impact of AI is still in its early stages. From our research, however, we were able to identify four key principles that young people and parents should be aware of going forward.

Firstly, as already briefly mentioned, young people must actively seek AI literacy so that they can work with AI, rather than be displaced by it. Secondly, students should be focusing on developing their most distinctively human skills – such as critical thinking, empathy, and problem-solving – those least likely to be replaced by AI. Thirdly, more young people should consider pursuing technical pathways – such as apprenticeships – since skilled trades face far less risk of being replaced than many traditional academic professions.

Finally, it is now more important than ever that young people remain informed and up-to-date with labour market trends and use this insight to guide their educational and skills development choices.

Going forward, the Harrison Foundation hopes the Government will provide greater clarity and assurance to young people across the country that bright futures and stable careers remain attainable within an increasingly AI-shaped world. On our end, we will continue to monitor developments in education, skills, and the labour market, closely.

Thank you to Katie Homer for her contribution to this piece.