The idea that ‘AI will take all our jobs’ often grabs attention, but the data shows a more detailed and useful picture. Recent research from Forrester, the UK Government, and King’s College London all point to the same conclusion: AI is changing the way we work, but it is not wiping out jobs entirely.
For UK businesses making real estate decisions, knowing what is really happening in the labour market is key to building a strong workplace strategy.
What the data actually shows
Here is what the latest research, including UK-specific findings, shows:
Disruption, not destruction
• AI and automation are expected to cause about 6% of US jobs to disappear by 2030 (Forrester). This is significant, but it is nowhere near the total workforce collapse that headlines often suggest.
• In the UK, IPPR estimates that up to 7.9 million jobs could be at risk if AI fully replaces certain roles. However, this outcome can be avoided if employers and policymakers take the right steps.
• Context matters. Many job cuts blamed on AI are actually the result of cost-cutting or changes after the pandemic. Forrester refers to this as ‘AI washing,’ which can give the public the wrong impression about what is really happening.
The UK picture: real effects, but concentrated
• A King’s College London study (December 2025) that looked at millions of UK job postings found that companies with workforces highly exposed to AI reduced total employment by 4.5% on average. Most of this impact was in junior and entry-level roles, which dropped by 5.8%.
• From 2022 to 2025, UK job adverts dropped by 38% for roles with high AI exposure, compared to a 21% drop for roles with low exposure (McKinsey, July 2025). The sectors most affected are finance and insurance, information and communication, and professional services.
• Location is important. Workers in London and the South East face the highest AI exposure of any UK region. This is a key factor for businesses planning their staffing and office space in these areas.
London: the highest-exposure market, and the highest-opportunity one
Because London has many financial, professional, and technology businesses, it is at the forefront of AI-driven workforce changes. High exposure does not mean greater risk; it means the need to adapt comes sooner. Companies that act quickly will gain a strong competitive edge.
For London occupiers, the most effective adjustments to workplace strategy right now are:
• Focus on right-sizing, not just downsizing. The instinct is to want to reduce your office space as headcount changes, but doing so too soon can be a mistake. Demand for top London office space is still strong. A better approach is to reconfigure your space, replacing underused desks with areas that boost productivity and help keep talented staff.
• Design your office for the work that AI can’t handle. Complex problem-solving, building client relationships, making strategic decisions, and creative teamwork are becoming more important for London’s workforce. Office layouts should support this shift by offering flexible team areas, spaces for meeting clients, and zones for innovation instead of rows of fixed desks.
• Include workforce development in your office plans. Since 33% of UK businesses are retraining staff to work with AI, offices must now serve as learning environments, not just places to sit. Training rooms, tech-enabled meeting spaces, and flexible layouts that support both solo work and group learning are becoming essential in London’s talent market.
• Use data to time your moves. London’s commercial property market moves fast. Lease events, supply shifts, and demand fluctuations in core submarkets – from the City and Midtown to Victoria and the South Bank – require real-time intelligence to act on. SHB’s proprietary platforms give clients a live view of market conditions, enabling decisions based on evidence.
Augmentation outpaces automation
• About 20% of jobs worldwide will be supported by AI, rather than replaced by it (Forrester). In the UK, ONS data from late 2025 shows that among businesses already using AI, only 10% use it to automate or replace roles. 33% are focused on retraining and upskilling their current staff.
• This matches what we see with our clients. Businesses are not cutting jobs; instead, they are changing how their people work and what they need from their workplaces.
Impact is uneven across roles
• Jobs that are repetitive, task-based, or administrative are under the most pressure. Managerial, creative, and strategic roles are much more likely to remain secure.
• For growing companies, this means the talent you want to attract, such as strategic thinkers, collaborators, and innovators, will still need and expect a high-quality physical workplace.
Five strategic implications for office occupiers
The workforce data has direct consequences for real estate strategy. Here’s how forward-thinking occupiers should respond:
1. Office demand won’t collapse, but it will evolve
Premium office markets in major cities remain highly competitive. Vacancy rates are declining, and prime rents are rising. AI is not making offices empty; it is changing how they are used. The focus is moving from fitting in as many desks as possible to creating spaces for collaboration, complex problem-solving, and creative work that AI cannot do.
What this means for your strategy:
• Businesses still need office space. The real question is whether that space helps them gain a competitive edge or just provides room for employees.
2. The office as a talent magnet, not a cost centre
The KCL data shows something important: AI is having a bigger impact on junior roles. Companies with high AI exposure saw entry-level job openings drop by 5.8%, indicating fewer opportunities for early-career talent. The businesses that succeed will be those that create a workplace where new talent wants to grow. In this way, the office itself becomes a competitive advantage.
Implications for occupiers:
• Flexible office layouts with training areas, collaboration spaces, and support for hybrid work will be in high demand. These features boost productivity and help attract talent.
• Offices that promote community, learning, and people-focused work will become the most sought-after locations.
3. Hybrid isn’t going away & space use is being redefined
AI tools help save time on routine tasks, but they also make in-person strategy and teamwork even more important. Hybrid work is here to stay, but time in the office must offer clear value.
Practical takeaway:
• Design your office for activity-based working. Include quiet zones for focused work, team areas for collaboration, and flexible spaces for innovation and workshops.
• Our data shows that organisations with the highest office use are those that design their workplaces to match how their teams work now, not how they worked in the past.
4.Upskilling and culture should drive real estate decisions
UK ONS data clearly shows that most businesses using AI are investing in retraining their staff, not replacing them. Forrester also points out that companies that invest in workforce readiness and technology will do better than those that do not. The office is now a strategic asset in the competition for talent, not just a building.
Office implications:
• Offices that support ongoing learning, such as training rooms, tech labs, and collaboration suites, will help companies stand out when it comes to keeping and attracting staff.
• Landlords and buildings that provide flexible, well-equipped spaces designed for workforce development are better positioned to attract and keep top tenants.
5. Don’t let hype drive your property decisions
Forrester warns against automating too much out of fear or just to keep up with trends. The same goes for real estate. Cutting your office space just because AI might reduce headcount is as risky as expanding without solid data.
Office strategy takeaway:
• Planning based on real evidence, using insights about how your teams actually work and strong market data, leads to better long-term results than making quick, reactive decisions.
The bottom line
AI is changing the workplace, but this is an evolution, not an elimination. Roles are being reshaped, people’s skills are being enhanced, and team collaboration is evolving.
For growing businesses, this means one thing above all: your workplace strategy needs to be as intelligent as your business strategy. The office is not becoming obsolete. It is becoming more important and more complex than ever.
SHB’s 360º service ecosystem, backed by proprietary data platforms and decades of specialist expertise, ensures you make every property decision with confidence, from acquisition and fit-out through to long-term portfolio management. Leverage our unique market intelligence platforms to track real-time demand and supply dynamics across major commercial hubs, giving you a precise picture of where opportunity lies.
