Tech’s AI Paradox? Threats and opportunities in store for the UK’s workforce

• Many of the UK entry-level positions that have decreased by up to 35% are in the tech sector
• Number of tech job ads with AI skills up 62% YoY
• Demand for digital transformation skills up 37% across UK professional services

Huge tech giants such as Amazon, Intel & Microsoft have dominated news of job layoffs in 2025. Yet they aren’t cutting back on AI. Bloomberg reports capital expenditures on AI are up +16% since the beginning of the year.

New data from global talent solutions provider, Robert Walters highlights the double-edged sword of AI. While it poses huge strategic potential it simultaneously threatens thousands of tech jobs, particularly entry-level roles.

Entry-level & graduate professionals first in the firing line

Anthropic CEO Dario Amodei recently sparked controversy with his comments predicting that AI could potentially cut white-collar entry level jobs by 50%.

Data from Robert Walters’ Market Intelligence shows that junior and entry-level roles have declined by up to 35% over the past 18 months – with the tech sector registering the steepest declines.

Despite this, the demand for entry-level roles is still increasing – between 2023-2024 applications per entry-level role surged by just over 62%. (Source)

Jonny Bohane, Senior Manager in Robert Walters Market Intelligence comments: “Since early 2023 we’ve seen the growth of graduate and entry-level hiring markets sustain hit-after-hit. Particularly, entry-level technology roles are seeing the steepest declines - due to AI implementations and cost streamlining.”

Scrambling for solid infrastructure

Conversely, the number of IT job postings featuring skills in AI (+62%) are up on the past 12 months.

With similar upticks recorded on IT jobs ads asking for skills in data architecture (46%) and privacy (33%), as firms simultaneously try to build, scale and protect their AI tools and digital solutions within their businesses.

Big Tech makes up a significant portion of top employers for this talent. Meta boss, Mark Zuckerberg recently announced that he was recruiting a ‘super intelligent’ AI team, bolstering plans to make AI a priority for the whole company.  

Ben Litvinoff, Associate Director of Robert Walters London, explains: “Most firms, especially across Finance and Technology sectors, are ramping up efforts around both Security and AI projects. Efforts to stay ahead with AI but also provide enhanced resilience require tech teams working behind the scenes to bring organisational infrastructures up to speed.  

“These projects create demand for skilled tech professionals, but they also lead to job cuts.  Firstly, through employers trimming payroll numbers to gather initial funding and secondly, further cuts come into play as entry-level roles are replaced by newly optimised or even, automated processes.”

Tech transformation projects influence broader skills

Competition among professional services firms is also intensifying when it comes to AI and digital enhancements. Demand for technology professionals with transformation skills has skyrocketed. Digital transformation skills have swelled by over a third (+37%) in the last 12 months across UK job listings.

With top skills in demand across UK professional services now including IT Project & Program Management (+75% YoY increase) and Technology Change Management (+84% YoY increase).

Despite adverse economic conditions, most businesses are forging ahead in transformation projects like adopting new CRMs, scaling their existing tech-optimised services or transitioning from legacy solutions to cloud platforms to store their data.

Ben observes: “Many businesses across industries are finding themselves either beginning or amid key digital transformation projects, and it’s clear that strategically placed technology teams are instrumental in actioning and executing these critical projects.”

Soft skills and strategy will set teams apart

The diverse skillsets of tech teams are a crucial ingredient for successful AI or digital upgrades. Soft, not just technical skills, make up essential capabilities. Skills like collaboration (+51%), senior stakeholder management (+36%) and strategic communication (+26%) being particularly sought after.

Ben adds: “While technical AI-ready skills are crucial, they mustn’t overshadow softer ‘AI resilient’ skills that many tech professionals possess.

“Employers must avoid cutting tech talent for short-term cost saving. Streamlining functions may be top of the agenda now but ongoing large-scale job declines threaten future talent pipelines, which could impact firms for years to come.”

Jonny ends: “For tech professionals, competing intentionally is key. Gaining AI fluency, as well as showcasing portfolio-ready soft skills and targeting applications to sectors with the fast-growing demand for your skills like security, sustainable energy, banking, and manufacturing. This three-pronged approach will help you stay competitive in today’s constantly evolving market.”

ENDS

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Lauren Parsons
PR Executive
T: 07386657894
E: lauren.parsons@robertwalters.com