AI is already reducing entry-level job opportunities for young people, Sunak warns
Rishi Sunak told the BBC that artificial intelligence is flattening the job market for graduates, and company executives are privately confirming they're hiring fewer young people because of the technology. The former prime minister, now an adviser to AI firms Anthropic and Microsoft, said the concerns from entry-level job seekers are justified.
Chief executives are telling Sunak that "flat is the new up" - they believe they can grow their businesses without significantly increasing headcount by deploying AI. The effect is most visible in service sectors including law, accountancy, and creative industries.
Government should reshape tax policy
Sunak proposed eliminating National Insurance over time and replacing it with taxes on corporate profits, which he argues would increase as AI boosts productivity. He said governments across multiple countries will face this same pressure as employment tax revenue declines.
The shift reflects a fundamental change in how companies view growth. "That's why I think we do have to look at this issue very seriously and with purpose," Sunak said.
Managing AI's impact on work
Sunak emphasized that policymakers should steer AI toward augmenting worker capabilities rather than replacing them. He said the technology's impact on employment "may be different to previous technology cycles," requiring deliberate action to protect job creation.
During his premiership, Sunak made AI regulation a priority, including establishing an AI safety summit in 2023. He now serves as a senior adviser at investment bank Goldman Sachs alongside his roles at Anthropic and Microsoft.
UK's testing role and tech investment
Sunak highlighted that Britain's AI Security Institute, created during his tenure, became the first to test Anthropic's new Claude Mythos model. The institute's independent assessment matters because "we shouldn't rely on companies to mark their own homework," he said.
He also revealed a partnership with Labour's deputy prime minister David Lammy to promote UK tech sector investment. Sunak described the recent wave of multi-billion pound investments in British AI as evidence the country is an "AI superpower," with major companies like Deepmind, Anthropic, and OpenAI operating there.
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