According to local reports, there is no consensus on the impact of AI on the workforce. A survey by Deloitte found that 52% of UK finance chiefs expect AI to reduce their headcount within a year. However, data from the ONS shows that fewer than one in ten businesses using AI have actually reduced their headcount.
Graduate job adverts have decreased by 43% in the past year, according to Adzuna, and ONS figures indicate that one in six young people in the job market are out of work.
AI’s Impact On The Workforce
The disagreement on AI’s impact on the workforce is causing problems for businesses, which must make decisions about investing in junior staff, using AI, and introducing AI agents. Many leaders are hesitant to make decisions due to the lack of clarity, while others are forcing AI into workforce planning without fully understanding its implications.
Some leaders are replacing people with technology without considering the changing nature of work and the capabilities needed. This approach is not a strategy, but rather a result of working with unknown blind spots. The same three blind spots keep emerging in conversations with organizations: planning around headcount, hiring for roles that AI is dismantling, and believing reskilling is on track when delivery has fallen behind.
Planning around headcount assumes stability, but AI’s capabilities can change rapidly, making annual plans outdated. Instead, businesses should plan for capacity, reviewing it quarterly rather than annually. This approach allows for more flexibility and adaptability in response to AI’s evolving capabilities.
Read Also: British skiwear founders launch My Sunday Ski brand
As AI takes on more work, the team’s shape and roles may need to change. Before opening a vacancy, businesses should consider what outcome they need the person to deliver, rather than relying on the previous job description. The job spec should be revised if the answer has changed, and the job description should be treated as a starting point, revisited every few months to reflect the changing work environment.
Reskilling And AI
Most businesses are committed to reskilling, but turning intention into capability quickly enough is a challenge. The return on reskilling can take years to show, while budgets and targets tend to reset annually, causing reskilling to lose out to shorter-term priorities. Checking progress quarterly and treating training like any other investment can help businesses stay on track and ensure that reskilling is effective.
At La Fosse, an AI Workforce Council has been established to explore how organizations can plan, resource, and reskill their workforces as AI develops. The council’s conversations have informed the creation of a practical roadmap for businesses planning towards 2027. This approach focuses on making decisions that can be improved now, rather than waiting for a definitive answer on AI’s impact on jobs.
The more useful approach is to focus on the decisions that can be controlled, such as reviewing capacity more often, defining vacancies around outcomes, and measuring reskilling by its impact on team delivery. By taking this approach, businesses can make informed decisions about their workforce planning and respond to the impact of AI on the workforce.
La Fosse has developed a Beyond Headcount blueprint, a free practical guide for businesses planning towards 2027. The company partners with organizations to build high-performing, agile teams and has helped businesses scale and lead digital transformation through authentic relationships, bold thinking, and proven expertise. La Fosse offers specialized services, including recruitment, executive search, and training, and has received national recognition for its approach, including being named one of the top 100 recruitment agencies in the UK.
