Artificial Intelligence: Impact on Employment

Baroness Berger Excerpts

Monday 13th April 2026 Lords Chamber

Asked by

[Baroness Berger]

To ask His Majesty’s Government what assessment they have made of the impact of developments in artificial intelligence on current levels of employment.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

The AI and the Future of Work Unit has been set up to research and monitor AI’s economic and labour market impacts and to provide policy advice. The unit published its first assessment in January, finding that AI capabilities are progressing rapidly and noting that hiring has been falling faster in occupations more exposed to AI, although it stressed that whether AI is responsible for these patterns remains unclear. To further increase the Government’s capability to monitor and anticipate AI’s economic impacts, the Chancellor announced a new AI Economics Institute supplementing the future of work unit with a broader focus on the economics of AI.

[Baroness Berger (Lab)]

My Lords, we already know there is a growing challenge in the graduate job market exacerbated by AI, as we have recently discussed in your Lordships’ House. A study by King’s College London has shown that senior leaders across all job markets will be needed who cannot be replaced by AI. What plans do the Government have to ensure there is no dearth in senior leadership further down the line due to a lack of entry-level recruitment?

[Baroness Lloyd of Effra (Lab)]

The Government recognise that entry-level roles are important for building skills and progression pathways that underpin future leadership capability. Progression to senior leadership depends not only on job numbers but on the quality of training and in-work development. The Government want everyone to have access to the best opportunities, no matter what stage they are at in their career. Through the £1.5 billion youth guarantee and the growth and skills levy, we are expanding high-quality training, apprenticeships and workplace experience so people can progress in a changing, AI-enabled labour market.