52% of CFOs surveyed by Deloitte expect many large UK firms to use AI to replace
employees within the next year, though AI adoption is still at an early stage;
67% say firms have delivered only about 25% of the transformation they
ultimately expect from AI. Companies cite AI and high labor costs as reasons to
reduce headcount when expanding, contributing to rising long-term unemployment
and youth unemployment at decade-plus highs despite the UK growing faster than
many European peers. Only about one-third of CFOs expect AI to boost profit
margins within the next year. The report says the trend reinforces a renewed 'no
employment growth' dynamic and poses a political challenge for Prime Minister
Andy Burnham's Labor government.
