One-third of founders will cut jobs this year due to AI

One in three scaleup founders are expecting to cut jobs this year due to AI adoption within the next 12 months, according to new research from Helm, one of Britain’s largest entrepreneur networks.

When 400 Helm members were asked in an online survey: ‘Do you expect AI adoption to lead to job cuts in your business within the next 12 months?’ 33% said ‘yes’, 64% said ‘no’, and 3% responded ‘don’t know’.

The survey, which was carried out between 5-6^th February, also asked: ‘Are you delaying or reducing new hires as a result of increased AI adoption?’ 58% of responded ‘yes’, 35% said ‘no’, and 7% responded ‘don’t know’.

Another question asked was: ‘Do you believe the UK workforce is adequately prepared for widespread AI adoption?’ 3.5% of responded ‘yes’, 93% responded with ‘no’, and 3.5% said ‘don’t know’.

Andreas Adamides, CEO of Helm, commented: “AI is forcing business leaders to make some difficult decisions about jobs and hiring. Many founders are under pressure to move fast, stay competitive, and rethink roles as automation accelerates.

“The bigger opportunity now is to upskill workers for higher-value roles and use AI to drive sustainable growth. If businesses and policymakers invest in skills early, AI can become a powerful engine for productivity rather than job insecurity.”

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Helm member, Joshua Wöhle, Founder and CEO of AI training company, Mindstone, said: “AI has the potential to be transformational for British business, but the skills gap is making people focus on automation, which is where technology has historically made a difference, instead of augmentation, where generative AI really can make a difference.

“Automation leads to job losses versus augmentation that moves the top line. Ultimately, this comes down to training.”