Artificial intelligence is already impacting job opportunities for young people, especially those entering the professional sector, former UK prime minister Rishi Sunak has said.
In an interview with BBCSunak noted that companies are beginning to rely more on AI tools, reducing the need to hire entry-level employees.
While he described himself as optimistic about AI’s long-term potential, he acknowledged that concerns among graduates trying to find their first job were “justified”.
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According to Sunak, senior executives have privately indicated that hiring levels for younger workers are flattening due to the growing adoption of AI technologies.
‘The surface is new’: CEOs rethink hiring
Sunak said business leaders are adopting a new approach to growth where companies expand production without commensurately increasing their workforce.
“They think they can continue to grow their businesses without having to significantly increase employment,” he said, describing how artificial intelligence allows businesses to increase productivity with fewer employees.
This shift is particularly visible in sectors such as law, accountancy and the creative industries, where traditionally a large number of junior roles have served as entry points for young professionals.
A call to overhaul the tax system
To balance this trend, Sunak suggested that governments consider long-term changes to tax policy. He proposed to gradually remove contributions to national insurance and replace them with taxes on company profits.
He argued that as AI increases productivity and efficiency, corporate profits are likely to rise – offering governments an alternative revenue base.
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Such a move could encourage businesses to hire more workers by lowering employment costs, he said.
Rethinking the role of artificial intelligence in the workplace
Sunak emphasized that policymakers need to ensure that AI is used to enhance jobs rather than replace them. He said governments need to “tip the balance” so that AI tools support workers and improve productivity instead of reducing job opportunities.
He also warned that the impact of AI on jobs may differ from previous waves of technological disruption, requiring new policy responses rather than relying on historical patterns.
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Countries may also face declining employment tax revenues as automation increases, so new fiscal strategies will need to be explored.
Concerns about safety and regulation of AI
Sunak, who currently advises Anthropic and Microsoft on artificial intelligence, also addressed concerns surrounding emerging AI capabilities.
Earlier this month, Anthropic unveiled a new AI model, Claude Mythos, which the company said can outperform humans in certain tasks related to cybersecurity and hacking.
These developments have sparked discussions among regulators and financial institutions about the potential risks to digital systems.
Sunak warned against allowing companies to self-regulate, saying independent oversight was essential. He pointed out that the UK’s AI Security Institute – set up during his tenure – was the first to test the system’s capabilities.
The UK’s ambition to lead in AI
Despite the concerns, Sunak expressed confidence in the UK’s position in the global AI landscape. He pointed to the presence of major firms such as Google DeepMind, Anthropic and OpenAI as evidence of the country’s growing influence.
He also revealed that he recently worked with Labor leader David Lammy to promote investment in the UK’s tech sector at the AI Summit.
Sunak said the UK has the potential not only to develop advanced AI systems, but also to become one of the most productive users of the technology globally.
Balancing forward
Sunak’s remarks underscore a growing debate about the impact of artificial intelligence on employment — particularly among young people entering the workforce.
While this technology promises efficiency and economic growth, it also raises questions about job creation, skills adaptation and the future of work.
Governments, he suggested, must act proactively to ensure that the AI-driven transformation benefits both businesses and workers.
