AI is likely to replace jobs, Bank of England governor warns

Date:
Fri, 19 Dec 2025 16:50:00 +0000

Description:
Bank of England Governor warns that AI could replace some entry-level jobs, making it hard for younger workers to find jobs.

FULL STORY

Bank of England Governor Andrew Bailey has likened artificial intelligence to the Industrial Revolution, suggesting the productivity-aiding tech could
indeed force people out of certain roles.

However key to Bailey's proposition is that AI wouldn't necessarily lead to mass unemployment, we're just in the midst of one of the biggest shifts in human history.

As such, the governor highlighted the need for upskilling and retraining, noting that workers with the right training, education and skills will find
it "a lot easier" to find employment in an AI-first era.

What does AI mean for future jobs?

Bailey did admit that some workers may find it harder than others. With AI capable of handling many repetitive and administrative tasks autonomously, he warned that younger and less experienced workers may struggle to access entry-level roles, indicating that the bar for entry could move higher.

The BBC reported that youth unemployment in the UK is already on the rise, at 5.1% per the most recent quarterly data. The Office for National Statistics found that unemployment among 18-to-24-year-olds is at the highest level
since November 2022, which is when ChatGPT launched in public preview and AI really started to go mainstream.

"In terms of its potential to improve productivity growth, I think it's
pretty substantial," he said on BBC Radio 4s Today program about the tech's effects on the UK. "It will get used across the economy." The Bank of England is already implementing artificial intelligence, however it's still in an experimental phase.

Separately, the Bank of England is also keeping an eye on whether AI firm valuations risk a bubble similar to the Dotcom era. But for now, many large firms are still generating strong enough cashflow to subside these worries.

"We're watching it very closely, because we do need to watch, obviously, what the consequences of any sharp unwinding could be," he added.

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Link to news story: https://www.techradar.com/pro/ai-is-likely-to-replace-jobs-bank-of-england-gov ernor-warns

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