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AI bias could worsen gender inequality in the workplace, warns Women and Work APPG

Artificial intelligence could deepen gender inequality in the workplace unless women play a far greater role in shaping the technology, according to new research from the Women and Work All-Party Parliamentary Group (APPG).

The report, based on insights gathered during a series of industry rounds between 2024 and 2025, warns that AI systems trained on historically biased data could reproduce and even reinforce existing discrimination in areas such as hiring, career development and performance evaluation.

Researchers argue that without more representative data sets, greater oversight and greater diversity among the people who design and deploy AI systems, the technology risks entrenching workplace inequalities at scale as companies increasingly adopt automation and algorithmic decision-making.

The results highlight several real-world examples where algorithmic systems have demonstrated bias. One case involved the withdrawal of an AI recruiting tool developed by Amazon after it was found to favor male candidates over female applicants. Concerns have also been raised about the visibility of women’s professional content on platforms such as LinkedIn, where algorithmic ranking has reportedly reduced the reach of women’s posts compared to men’s posts.

More broadly, experts say large language models and other AI systems often learn patterns from historical data that reflect long-standing gender imbalances in employment and pay. If these patterns are not corrected during development, systems may inadvertently reinforce them when used in real-world decision making.

The report warns that the rapid spread of artificial intelligence puts women at double risk: they are underrepresented in the development and leadership of the technology sector, but overrepresented in the roles most vulnerable to automation.

Positions in government, education, health and social care, many of which are dominated by female workers, were among the first sectors to be affected by early waves of AI-driven automation. As more industries adopt artificial intelligence, the risk of further displacement could increase if women are not better equipped with digital and technical skills.

Karren Brady, co-chair of the Women and Work APPG, said the rapid development of AI is transforming the labor market at a time when gender inequality remains unresolved.

“The rapid acceleration of artificial intelligence and new technologies is changing the world of work,” she said. “The persistent gender pay gap and inequality in the tech sector highlight that significant progress is yet to be made and urgent action is needed.”

Industry leaders who contributed evidence to the APPG report said the problem starts with the data used to train AI systems.

Linda Benjamin, vice president of AND Digital, said artificial intelligence reflects the assumptions embedded in the information used to create it.

“AI is shaped by the data it is built on, the questions it is asked and the people who design it,” she said. “When historical data reflects gender imbalances or systemic biases, AI can learn and replicate these patterns, reinforcing inequality quickly and at scale.”

Benjamin argued that improving outcomes for women in the age of AI must start “upstream,” by ensuring that data sets used to train algorithms are more representative and by establishing rigorous auditing processes to identify and correct biases.

She also highlighted the need for greater participation of women in AI and digital careers, as well as measures that address structural barriers to entry into the sector.

These barriers include limited access to retraining opportunities, high childcare costs, and workplace structures that make it difficult for women to retrain or move into technical careers.

Experts involved in the report also highlighted the risk that older women could be disproportionately affected by the transition to AI-powered jobs. Workers over 55 are often excluded from digital training programs, making them particularly vulnerable to layoffs as companies adopt automated processes.

At the same time, the report raises concerns about the use of AI-driven productivity monitoring tools in the workplace. These systems can track performance metrics and employee behavior in real time, but critics warn that they could lead to overly punitive work environments if implemented without safeguards.

Charlotte Wilson, head of corporate business in the UK and Ireland at Check Point Software Technologies, said artificial intelligence had already demonstrated its potential to provide significant benefits in areas such as healthcare, including early detection technologies for breast cancer.

However, she cautioned that the technology should never be viewed as infallible.

“AI is only as good as the data it processes,” Wilson said. “When systems are created by people with their own perspectives and assumptions, unconscious bias can inevitably creep in. AI must be treated as a tool that requires critical oversight, especially when decisions impact people’s careers and opportunities.”

The report also highlights structural inequalities in entrepreneurship and investment that could further limit women’s influence in new technologies.

Despite evidence that women-led businesses often generate high financial returns, all-female founding teams received just 1.8 percent of venture capital investment in the UK at the start of 2024. Even in investment committees, which play a central role in deciding which start-ups receive funding, women only make up around 15 percent of the members.

Limited access to capital, coupled with high child care costs and a lack of financial safety nets, continues to limit the ability of many women to start or grow businesses. The report finds that many female founders pay too little to build their business or forego benefits such as maternity pay.

Sheila Flavell, chief operating officer at FDM Group, said closing the digital skills gap was crucial to ensuring women are not left out of the next phase of economic growth.

“Skilling and reskilling women in digital skills must be a priority,” she said. “From supporting girls to early education to providing clear pathways into technical and leadership roles, companies and government must work together to equip women with the skills needed for the AI ​​economy.”

Flavell also stressed the importance of supporting women returning to work after a career break to ensure experienced talent is not permanently lost to the technology sector.

The Women and Work APPG says its research will continue through 2026 and will focus on practical policy measures to ensure women are not left behind as digital transformation reshapes the global economy.

The parliamentary group led by Baroness Brady and Sarah Russell plans to examine reforms that could expand digital training opportunities, improve childcare support for entrepreneurs and strengthen protections against algorithmic bias in workplace technologies.

Proponents of the initiative argue that giving women a stronger voice in the development of artificial intelligence is not only a matter of equality, but also an essential prerequisite for economic competitiveness.

As AI becomes embedded in hiring, promotion and productivity decisions across the economy, they warn that ensuring fairness in these systems will determine whether the technology expands opportunity or deepens existing inequalities.


Jamie Young

Jamie is a Senior Reporter at Daily Sparkz and brings over a decade of experience in business reporting for UK SMEs. Jamie has a degree in business administration and regularly attends industry conferences and workshops. When Jamie isn’t covering the latest business developments, he is passionate about mentoring aspiring journalists and entrepreneurs to inspire the next generation of business leaders.

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