Is AI a Threat to Your Job? Bank of England Governor Andrew Bailey Says Artificial Intelligence Will Displace Jobs, but Won’t Cause Mass Unemployment

Mumbai, December 19: Will AI replace human jobs? Will AI trigger mass layoffs and unemployment? The Governor of the Bank of England has issued a warning regarding the impact of artificial intelligence (AI) on the global labour market, stating that the technology is poised to "displace" a substantial number of jobs across various sectors. This pronouncement underscores growing concerns among policymakers about the socio-economic implications of rapid technological advancement.

According to Governor Andrew Bailey, current projections indicate that AI and automation could affect millions of jobs, potentially rendering many existing roles obsolete. This shift is not limited to manual or repetitive tasks but extends increasingly to cognitive functions previously considered exclusive to human workers. He urged governments and industries to prepare for these fundamental changes.

"We do have to think about, what is it doing to the pipeline of people? Is it changing it or not? I think if it's people working with AI, I'm not sure it will change the pipeline, but I think we're right to have a have an eye on that point," he told the BBC Radio 4's Today programme. He noted that job seekers would find it "a lot easier" to secure employment if they possessed AI-related skills. Will AI Take Away Jobs and Trigger Massive Layoffs? Here’s What Elon Musk, Sam Altman, Sundar Pichai, Bill Gates and Satya Nadella Think About Impact of Artificial Intelligence.

AI Will Displace Jobs, but Won't Cause Mass Unemployment

Governor Bailey further said, like Industrial Revolution, AI will displace people from jobs, but won't cause mass unemployment. "As you saw in the Industrial Revolution, now over time, I think we can now sort of look back and say it didn't cause mass unemployment, but it did displace people from jobs and this is important. My guess would be that it's most likely that AI may well have a similar effect. So we need to be prepared for that, in a sense," he emphasised.

Historical Parallels and Key Distinctions

While technological advancements have historically led to job displacement, often followed by the creation of new roles, Governor Bailey highlighted key distinctions with the current wave of AI. Unlike previous industrial revolutions that primarily automated physical labor, AI's capability to perform complex analytical and decision-making tasks suggests a broader impact on white-collar professions, including finance, law, and healthcare. This widespread potential challenges traditional assumptions about job security and the nature of work. Amazon To Create 1 Million Jobs in India by 2030, Announces to Invest USD 35 Billion To Boost AI-Driven Digitisation and Exports.

Impact Across Sectors

The analysis suggests that jobs involving routine cognitive tasks, data processing, and even some forms of creative work are particularly vulnerable. From administrative support and customer service to certain aspects of journalism and artistic creation, AI tools are rapidly improving their ability to perform these functions efficiently. This raises questions about the future demand for human labor in sectors long considered stable.

Policy Responses and Mitigation

Addressing the impending shifts will require comprehensive policy responses, the Governor noted. These include significant investments in education and lifelong learning to reskill the workforce for emerging roles, strengthening social safety nets to support displaced workers, and exploring new models of employment and income distribution. Policymakers are urged to foster environments that encourage innovation while simultaneously mitigating its potential negative societal consequences.

The Broader Economic Landscape

The Bank of England's warning contributes to a growing international discourse on the economic implications of AI. While AI promises increased productivity and economic growth, its uneven adoption and potential for significant job losses could exacerbate income inequality and create social unrest if not managed effectively. The Governor stressed that proactive planning and international cooperation would be crucial in navigating this complex transition and harnessing AI's benefits for broader societal good.

(The above story first appeared on LatestLY on Dec 19, 2025 01:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).