MORE jobs are being lost due to AI in Britain than are being created while other countries are not hit as hard by tech automation, new research found today.

Companies have reported a net loss of jobs in the past year with about 8 per cent of positions disappearing due to AI being implemented in the workplace, according to Morgan Stanley.

A new study from the investment bank included data collected over the past 12 months, looking at firms in industries including real estate, transport, healthcare equipment, cars, consumer staples and retail.

British businesses also reported an average of 11.5 per cent increase in AI-related productivity.

Companies in the US reported similar gains in output but, unlike Britain, they saw an increase in the number of jobs.

A separate survey by recruitment company Randstad found that more than a quarter of British workers are worried their position could disappear entirely in the next five years as a result of businesses embracing AI.

Young workers are most likely to be worried about getting sacked due to AI automation, while those born before 1964 are more confident their jobs will be safe.

This was reflected in the Morgan Stanley study, which found that bosses were more likely to cut early-career positions rather than senior-level ones.

TUC assistant general secretary Kate Bell warned that without union involvement and regulation, AI risks becoming yet another tool “to drive down wages, intensify work, and concentrate wealth at the top.”

“AI is being rolled out in workplaces at pace, and how we manage this will determine who benefits,” she told the Star.

Ms Bell called for “proper investment in training and reskilling” and demanded urgent action for “stronger workplace rights, genuine consultation, and policies that put working people at the heart of the AI transition — not as an afterthought.

“Workers must have a real voice in decisions about AI, from the shop floor to the boardroom. These are not just technical decisions. They’re about people’s jobs, their skills, and their futures.

“Any productivity gains must be shared with the workforce, not just pocketed by shareholders.”

AI-driven mass unemployment has become a fear for some politicians, who warned the  state would need to step in.

London Mayor Sadiq Khan warned earlier this month that the capital was on “the sharpest edge of change” and that AI could “usher in a new era of mass unemployment” due to the city’s high number of workers in finance, law, accounting, consulting and marketing industries.