
Rishi Sunak said the pressure was being felt particularly in service sectors such as law, accountancy and the creative industries.
Former British Prime Minister Rishi Sunak, now an adviser to Anthropic and Microsoft, warned that artificial intelligence is beginning to flatten the jobs market for young people, especially those seeking entry-level roles. Rishi Sunak said concerns among graduates trying to enter the workforce were justified, adding that senior business leaders were privately telling him recruitment trends were changing because of AI.
"They're talking about this concept that they think they can continue to grow their businesses without having to significantly increase employment. Flat is the new up," Rishi Sunak told BBC.
Entry-Level Jobs Under Pressure
Rishi Sunak said the pressure was being felt particularly in service sectors such as law, accountancy and the creative industries, where many junior roles involve routine analytical or administrative tasks that AI tools can increasingly perform.
"There are reasons to be worried and think about the future. But we are able to do something about this," he said. While Rishi Sunak described himself as enthusiastic about AI's long-term potential, he said governments should intervene to make hiring people more attractive rather than allowing technology to simply replace workers.
Rishi Sunak's Tax Proposal
The former Conservative leader suggested phasing out National Insurance contributions over time and replacing the lost revenue with taxes on corporate profits. He argued that companies benefiting from AI-led productivity improvements would likely generate stronger profits, creating an alternative tax base while reducing the cost of employing staff.
"We should be thinking about how do we tip the balance in favour of AI being used in that positive way... to help people do their jobs better," he said.
Regulating Powerful AI
Rishi Sunak joined both Anthropic and Microsoft as an adviser last year after leaving office. During his premiership, he made AI regulation a major policy priority and hosted the AI Safety Summit. His comments come after Anthropic unveiled a new AI model called Claude Mythos, which the company said outperformed humans in some cybersecurity and hacking-related tasks.
Rishi Sunak said the development showed regulators should not depend on companies to "mark their own homework".
Despite the warning, Rishi Sunak struck an optimistic tone about Britain's place in the global AI race, saying the UK could become the world's most productive user of AI and remained an "AI superpower".