New research suggests that UK businesses are turning to AI not just to improve efficiency, but to cut spending on staff.

The report, commissioned by Boston Consulting Group (BCG), shows that over half (51%) of UK business leaders are planning to redirect their investment expenditures from staff to AI. 44% are looking to prioritise investment in AI.

Globally, one in three companies plan to allocate over $25 million to AI, the study found.

The UK tend contrasts with the global overview, which found that less than 10% of executives expect a decrease in headcount due to AI automation.

This could reflect changing employment conditions in the UK – employer contribution to the National Health Surcharge has increased, and the national minimum wage is set to increase again in April.

Investing in AI typically requires hiring staff with AI skills, though this trend does not seem to safeguard current jobs and positions, nor has it lead to an increase in overall staffing vacancies.

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Information and Communication vacancies have seen a downward trend this year, according to the Office for National Statistics.

UK businesses may be taking a page out of Big Tech’s book, as numerous tech giants site investments in AI as a contributing factor to their continued mass layoffs of staff.

In the global review, BCG claimed that workers have staying power, as 64% of businesses eye AI and humans working side by side. 22%, however, see AI taking the lead, with humans retaining oversight.

While the global trend says that job replacement is an overstated fear, it may be a growing reality for UK workers as businesses.

As Starmer pushes for the UK to utilise AI to drive the growth, it will take time to see how this will affect the workforce.