AI is flattening the jobs market for young people, says Sunak

Former UK prime minister Rishi Sunak, currently an advisor to AI firm Anthropic and Microsoft, has warned that artificial intelligence is reshaping the employment landscape for younger generations. He emphasized the need for governments to rethink tax policies, suggesting the elimination of National Insurance to encourage hiring. While acknowledging AI’s transformative potential, Sunak noted that worries from graduates seeking entry-level positions are valid.

“There are reasons to be worried and think about the future. But we are able to do something about this,” he stated.

Sunak pointed out that business leaders are privately admitting to him that recruitment of young professionals is being affected by AI. He proposed a shift in the tax system by phasing out National Insurance and replacing it with levies on corporate profits. This change, he argued, would be supported by the productivity gains from AI integration.

According to Sunak, the service industries—including law, accountancy, and creative fields—are seeing increased difficulty for young job seekers. He added that executives believe they can grow their companies without significantly expanding their workforce, thanks to AI’s capabilities.

“They’re talking about this concept that they think they can continue to grow their businesses without having to significantly increase employment because they’re starting to see how they can deploy AI,” said Sunak.

AI Model Sparks Concerns

Earlier this month, Anthropic unveiled its AI model, Claude Mythos, which demonstrated superiority over humans in certain hacking and cyber-security tasks. This development has prompted discussions among regulators, lawmakers, and financial institutions about potential risks to digital services. Sunak, also a senior adviser at Goldman Sachs, highlighted that concerns over Mythos illustrate the need for external oversight.

“We shouldn’t rely on companies to mark their own homework,” he remarked.

Sunak praised Anthropic for testing the model, noting that Britain’s AI Security Institute—established during his time as prime minister—became the first to evaluate Mythos’ performance. He highlighted this as a benefit to the UK, emphasizing the country’s growing role in AI innovation.

Tech Industry Collaboration

During a recent AI summit, Sunak partnered with Labour’s deputy prime minister, David Lammy, to advocate for increased investment in the UK’s tech sector. He expressed confidence in the nation’s position as an AI superpower, citing substantial presence of firms like Deepmind, Anthropic, and OpenAI.

“I know people like to talk us down… or say that things aren’t working but in this area there are huge reasons for us to feel confident and proud,” he added.

Sunak described the current surge in multi-billion-pound tech investments as “Londonmaxxing” and “Britmaxxing,” terms used to reflect the UK’s competitive edge in the AI field. He reiterated the importance of leveraging AI to enhance productivity rather than replace human roles, urging a strategic approach to its integration.