20% of UK firms already replaced mid-level roles with AI

Artificial intelligence is already reshaping UK workforces, with nearly one in five businesses cutting mid-level roles due to automation, according to new research from consultancy Barnett Waddingham.

A survey of 500 HR and business leaders found that 71% of employers have invested in AI or automation this year, while almost two-thirds (62%) are training staff to use AI tools. More than half (55%) have developed or purchased AI assistants for key business functions, and only 5% have banned AI outright.

The rapid adoption is being driven by competition: over a third of businesses (36%) say mastering AI would give them their strongest competitive advantage, ahead of improving employee benefits or boosting recruitment and retention.

But the shift is already having a direct impact on headcount. Eighteen per cent of employers say they have made mid-level roles redundant because of AI, while 17% report cutting junior positions and 15% have reduced senior staff. The trend spans organisations of all sizes and mirrors recent labour-market data showing rising jobseeker numbers and falling vacancies.

At the same time, businesses are growing increasingly concerned about the long-term impact of automation on skills pipelines. Two-thirds (66%) fear that the decline of traditional junior roles will leave new entrants without the foundational experience needed to progress, risking a breakdown in succession planning. Many employers also worry about growing shortages of talent, citing restricted overseas recruitment, declining birth rates and rising long-term sickness levels.

Barnett Waddingham warns that companies must redesign junior roles and introduce clearer development pathways to prevent a future leadership gap.

“AI must be an enabler, not a substitute for a skilled workforce,” he said. “The employers who gain the most from automation will be those who redesign roles so people and AI work in unison, strengthening capability rather than eroding it. Becoming overly reliant on AI brings risks of its own; without human oversight, challenge and context, organisations can easily introduce new vulnerabilities.

“As more routine tasks are automated, the focus shouldn’t be on removing early-career roles, but evolving them. Businesses need employees who understand how AI works, who can apply judgement, and who can develop the experience required to become future leaders.”