- 33 per cent of founders expect job cuts linked to AI.
- 58 per cent are already delaying or reducing hiring.
- Over 90 per cent say the workforce is not ready.
A third of Britain’s scale-up founders believe artificial intelligence could lead to job losses in their businesses over the next year, according to new research.
A report by Helm found that 33 per cent of founders expect AI adoption to result in redundancies within the next 12 months. Around 64 per cent said they do not anticipate cuts, while 3 per cent remain unsure.
What appears more immediate, however, is a slowdown in hiring. Some 58 per cent of those surveyed said they are already delaying or cutting back on recruitment because of increased AI use. Just over a third said they are pressing ahead as planned.
Hiring freezes before job cuts
The mood mirrors what has already been unfolding in parts of the global tech sector. Separate analysis by RationalFX found that more than 30,000 tech workers have been laid off since the start of 2026, with roughly 24,600 of those cuts in the US.
Several major firms have announced reductions. Amazon is reported to have cut 16,000 roles this year, after 14,000 redundancies in October, despite posting record revenues of $716.9bn (£around 565bn). Meta has reduced about 1,500 roles in its Reality Labs division. Companies including Ericsson, ASML and Salesforce have also confirmed headcount reductions.
Andrea Adamides, chief executive of Helm, reportedly said that AI is forcing business leaders to make difficult choices around jobs and recruitment. Many founders, she reportedly said, are under pressure to move quickly, stay competitive and rethink roles as automation accelerates. The survey suggests that, for now, slowing recruitment is proving more common than sweeping redundancies.
Across the UK, permanent hiring has cooled over the past year as firms weigh higher operating costs against rapid technological change. AI appears to be adding another layer of caution.
Skills gap fuels unease
The findings also point to deep scepticism about whether the UK workforce is prepared for widespread AI adoption. Just 3.5 per cent of founders reportedly believe employees are adequately ready. An overwhelming 93 per cent said they are not.
That concern has been amplified by bold forecasts from industry figures. Mustafa Suleyman of Microsoft recently said he believes AI could reach human performance across most professional white-collar tasks within 12 to 18 months. He reportedly said that most of those tasks could be fully automated within that timeframe.
Whether such predictions materialise remains to be seen. For now, the data suggests founders are not rushing into mass layoffs, but they are clearly pausing before hiring.
