Women working in the technology and financial services industries are at higher risk of losing their jobs to artificial intelligence and automation than men, according to a new report from the City of London Corporation.
The study found that mid-career women – typically with five or more years of professional experience – are disproportionately affected by job relocation, while they are also overlooked for emerging digital roles due to rigid hiring practices and automated hiring screenings.
Women remain underrepresented in technology, finance and professional services, and the report warns that the rapid adoption of AI risks widening gender inequality in the workforce unless employers rethink how they recruit, retain and retrain staff.
According to the City of London Corporation, many experienced women are excluded by CV screening tools and recruitment processes that do not take into account career breaks related to childcare or caring responsibilities. Automated systems often prioritize uninterrupted career history and narrowly defined technical experience, disadvantaging women who have left the profession or moved into non-technical roles.
As a result, female applicants are often excluded in the early stages of hiring, even if their transferable skills and experience could be adapted for digital roles.
The report calls on employers to shift their focus away from rigid job descriptions and towards competency-based hiring, placing greater emphasis on aptitude, adaptability and potential rather than linear career paths.
The study estimates that over the next decade, about 119,000 white-collar jobs in technology, finance and professional services, predominantly held by women, are expected to be displaced by automation.
However, the report argues that many of these job losses could be avoided if companies invested in retraining rather than layoffs. By retraining affected workers into digital and technical roles, employers could save up to £757 million in redundancy costs while helping to address ongoing skills shortages.
Despite high demand for digital talent, more than 12,000 technical jobs in the financial and services sectors would remain unfilled in 2024, the City of London Corporation has found.
The report urges employers to prioritize retraining women currently working in administrative and clerical roles, as many of them already have valuable organizational, analytical and communication skills that could be translated into digital roles.
Upskilling programs would allow companies to retain institutional knowledge while building a more resilient workforce capable of adapting to technological change.
Dame Susan Langley, Mayor of the City of London, said: “By investing in people and supporting the development of digital skills within the workforce, employers can unlock huge potential and build stronger, more resilient teams. Focusing on talent, adaptability and opportunity will ensure the UK continues to lead in innovation and remain a global center for digital excellence.”
The findings come amid growing concerns about the impact of AI on employment. Recent Randstad surveys suggest that around a quarter of British workers fear their jobs could disappear within five years due to automation.
The City of London Corporation warns that simply increasing wages will not solve the problem. Instead, it is forecast that the UK’s digital skills shortage could last until at least 2035, potentially costing the economy more than £10 billion in lost growth if left unaddressed.
Union leaders and business associations are increasingly calling on companies to commit to long-term investments in the workforce, arguing that training and inclusion are crucial to ensuring AI increases productivity without deepening inequality.
