Former PM Sunak Says AI is Killing British Jobs

Former British prime minister Rishi Sunak warned that artificial intelligence is beginning to flatten hiring for young workers, saying governments should consider scrapping National Insurance to make employment more attractive.

Sunak, now an adviser to AI firms Anthropic and Microsoft, said concerns among graduates struggling to find entry-level roles are justified. He said company executives have told him privately that hiring is no longer keeping pace with growth as businesses increasingly rely on AI.

“Flat is the new up,” Sunak said, describing a shift in which companies expect to expand without significantly increasing headcount due to productivity gains from artificial intelligence.

He pointed to sectors such as law, accountancy and the creative industries as already feeling the impact, with fewer junior roles available. Sunak said the effect of AI on employment could differ from previous technological shifts and requires a policy response.

To address the trend, he proposed gradually eliminating National Insurance and replacing it with higher taxes on corporate profits, arguing that AI-driven efficiencies would boost company earnings and provide an alternative revenue source for governments.

Sunak said policymakers should focus on encouraging AI to enhance workers’ productivity rather than replace them, while acknowledging that tax systems may need to be rebalanced as employment-related revenues decline.

He also called for stronger oversight of AI development, saying governments should not rely solely on companies to regulate themselves. He cited recent concerns around advanced AI models, including cybersecurity risks, as evidence of the need for independent evaluation.

Despite the warnings, Sunak expressed confidence in the UK’s position in the sector, describing it as an “AI superpower” and pointing to major industry investment and the presence of leading companies operating in the country.