People profession key to helping organisations adopt AI sustainably and responsibly in an uncertain labour market

In this story

• Converting AI risk into an opportunity for positive transformation
• AI's impact on the future of work is not inevitable

The CIPD has published its quarterly Labour Market Outlook, which shows employer hiring confidence in the UK remains at a record low, outside the COVID-19 pandemic. Expectations around the impact of AI on jobs are playing a part, with one in six employers surveyed anticipating AI will lead them to shrink their workforce over the next year. But 6% of employers also say AI will lead them to increase headcount in the next 12 months.

According to the survey of over 2,000 employers on their hiring, redundancy and pay plans, early-career and lower-level professional roles are most at risk. And one in four large private sector firms said they expect headcount to fall, compared to 17% in the private sector overall and 20% in the public sector. This is especially true in finance and insurance, IT and administrative and support services.

While this report is based on UK data, AI is a global phenomenon,and we'reseeing similar sentiment from businesses around the world. The World Economic Forum's Future of Jobs Report 2025claims that 40% of global employers anticipatereducing their workforce by 2030,in favour of AI automation.

"AI is transforming how we work, with huge potential to boost productivity and performance. But it also risks leaving people behind. We need stronger long-term workforce planning and investment in skills to help everyone use AI effectively at work."

Converting AI risk into an opportunity for positive transformation

In the face of concerns about the impact of AI, the people profession can play a critical role in helping organisations prepare, adaptand drive better business outcomes.

By taking a strategic lead on workforce planning, people teams can anticipate where AI will change or create roles. This insight can guide evidence-based decisionsabout headcount and future skills that support productivity and performance. You can also lead upskilling programmes to help employees work effectively alongside new technology and guide leaders to introduce AI ethically and responsibly- turning risk into opportunity and boosting organisational capability.

AI's impact on the future of work is not inevitable

At this year's CIPD Annual Conference and Exhibition, mathematician and STEM advocate Anne-Marie Imafidon MBEreminded visitors that the future of work is already taking shape. And, while AI will be central to the transformation, nothing is inevitable.

She encouraged people professionals to use their influence to ensure technology is introduced ethically, inclusively and in ways that complement rather than replace human capability. Her talk reinforced the important role the profession has in shaping how AI drives productivity, performance and positive change across organisations.

Visitors to the event also heard thoughts on AI and HR from Ben Redshaw, founder and director of Orchard Tree Consulting. He reiterated that HR teams will play a vital role in balancing risk and growth as AI begins to influence workforce planning, pay and skills.

As your trusted career partner, the CIPD is committed to helping you navigate the opportunities and challenges of AI. We regularly publish research-led insights and guidanceto support you and your organisations, while we continue to share your voice in wider policy conversations.

Through thought leadership, practical resources and targeted learning opportunities, we're focusing on equipping the profession to work confidently and responsibly in an increasingly AI-driven world.