Women in tech and finance at higher risk from AI job losses, report says | Technology sector

Mid-Career Women in Tech Face AI-Driven Job Displacement as Rigid Hiring Practices Deepen Gender Gap

In a stark warning for the future of gender equality in the digital economy, a new report from the City of London Corporation has revealed that women—particularly those with five or more years of experience—are at significantly higher risk of losing their jobs to automation and artificial intelligence than their male counterparts. The findings highlight not only the threat of technological displacement but also the systemic barriers that continue to sideline women in tech and financial services.

The report, which examined hiring trends and workforce dynamics in the UK’s tech and financial sectors, found that mid-career women are being overlooked for digital roles at an alarming rate. Despite being traditionally underrepresented in these industries, female applicants are facing discrimination through rigid and often automated CV screening processes. These systems frequently fail to account for career gaps due to caregiving responsibilities or narrowly assess professional experience, effectively filtering out qualified candidates before they even reach a human recruiter.

The situation is further compounded by the rapid rise of automation. The report estimates that approximately 119,000 clerical roles—predominantly held by women—will be displaced by AI and automation over the next decade. These roles, often in administrative and support functions, are particularly vulnerable to technological disruption. However, the report also offers a potential solution: reskilling. By investing in the digital skills of women currently in non-technical roles, companies could not only mitigate job losses but also save up to £757 million in redundancy payments.

Upskilling initiatives could also address another critical issue: the high attrition rate among women in tech. Up to 60,000 women leave their roles in the sector each year, citing reasons such as lack of advancement opportunities, inadequate recognition, and pay disparities. By focusing on candidates’ potential rather than their past technical experience, employers could tap into a vast, underutilized talent pool and build more diverse, resilient teams.

Dame Susan Langley, the Lord Mayor of the City of London, emphasized the importance of this approach. “By investing in people and supporting the development of digital skills within the workforce, employers can unlock enormous potential and build stronger, more resilient teams,” she said. “Focusing on talent, adaptability, and opportunity will ensure the UK continues to lead on innovation and remains a global hub for digital excellence.”

The report’s findings come amid growing concerns about the impact of AI on the workforce. Recent surveys have shown that as many as a quarter of UK workers fear their jobs could disappear within the next five years due to AI, according to a poll by international recruitment company Randstad. Union leaders have echoed these concerns, calling on companies to commit to investing in workforce skills and training to ensure a fair transition to an AI-driven economy.

Despite efforts to address talent shortages—such as increasing wages above the national average—the report warns that higher pay rates alone will not solve the problem. The digital talent gap is expected to persist until at least 2035, with the UK potentially missing out on more than £10 billion in economic growth if the issue is not addressed. With over 12,000 digital vacancies going unfilled in 2024, the need for innovative solutions has never been more urgent.

The City of London Corporation’s report serves as a wake-up call for employers, policymakers, and the tech industry at large. As automation reshapes the workforce, it is imperative to ensure that the benefits of technological progress are shared equitably. By prioritizing reskilling, addressing systemic biases in hiring, and fostering an inclusive culture, the UK can not only safeguard its economic future but also create a more just and diverse digital economy.

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