AI: Labour Market Changes

Lord Pitkeathley of Camden Town Excerpts

Wednesday 25th February 2026 Lords Chamber

Asked by

[Lord Pitkeathley of Camden Town]

To ask His Majesty’s Government what plans they have to expedite the AI Security Institute’s research into threats to economic stability arising from changes in the labour market.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, the Government recognise that, while AI creates immense opportunities, it also transforms the workplace. To ensure continued access to meaningful employment, we are planning for all possible outcomes. We have launched the AI and the Future of Work Unit, a cross-governmental initiative supported by the AI Security Institute. This unit monitors labour market impacts in real time, accelerating vital research to anticipate disruption and protect the UK workforce.

[Lord Pitkeathley of Camden Town (Lab)]

I thank my noble friend the Minister for his reply and welcome the industrial strategy, as well as the launch of the AI and the Future of Work Unit. My concern is that we do not appear to have tested a scenario in which AI-driven displacement materially outpaces job creation. With estimates of net employment losses of around 8%, and AI capability in some domains doubling roughly every eight months, might it now be prudent to stress-test our underlying assumptions to ensure that they remain robust?

[Lord Leong (Lab)]

My Lords, my noble friend is right to bring up these concerns. Like all technologies, AI will reshape our world of work. We must accept that. We must embrace the new roles and opportunities that the transition brings. This is why we are committed to equipping 10 million workers with essential skills to develop and adopt AI. Furthermore, our Future of Work Unit will provide robust evidence to co-ordinate a proactive national response to these rapidly advancing capabilities, ensuring that no worker is left behind.