UK: AI Disrupts the Job Market in 2023

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Key Takeaways

1AI is mentioned in 9.4% of job postings in the UK, up from 2% previously.

2The marketing and management sectors are seeing a significant decrease in job postings.

3The job site describes this situation as a two-speed labor market, with a strong demand for AI.

💡Why it matters — This trend indicates a shift in the skills being sought, impacting workers in traditional sectors.

United Kingdom: AI Disrupts the Job Market in 2023

The British job market is splitting in two as demand for AI surges while job offers in the knowledge sector plummet. According to Indeed's Hiring Lab, 9.4% of job postings in the UK mentioned AI at the end of June 2026, compared to around 2% in 2023, with demand extending well beyond the tech sector, impacting marketing, finance, and media.

A "two-speed job market" is forming in the knowledge sector: overall job offers in areas like marketing, management, and human resources are declining, while AI-related postings in these same categories are increasing sharply.

The rise in AI-related recruitment contrasts with the UK labor market as a whole, where job offers have dropped by 11% since early 2026 and are now 32% below pre-pandemic levels.

AI now appears in 9.4% of job postings in the UK, up from about 2% in 2023, according to a new analysis. Overall recruitment is declining in many intellectual work sectors, creating what Indeed calls a "two-speed labor market."

AI Becomes a Standard Requirement in Job Postings

By the end of June 2026, 9.4% of all job postings in the UK mentioned AI or associated tools and software, according to Indeed's Hiring Lab, up from about 2% in 2023.

The share of job postings in the UK mentioning AI has nearly quintupled since 2023.

AI Skills Expected Well Beyond Tech Roles

Data & Analytics leads with 48.8%, followed by Software Development at 46.7%. Nearly half of all postings in these two areas now mention AI.
But the trend extends well beyond these categories: employers across various sectors now expect candidates to have a certain level of AI competency. AI appears in 30.7% of postings in IT Systems & Solutions, 28.1% of offers in Scientific Research & Development, 26.2% of roles in Marketing, and 22.4% of jobs in Media & Communications. The Banking & Finance (16.9%) and Arts & Entertainment (16.3%) sectors have also crossed into double digits.

AI skills are gaining value as recruitment in the knowledge sector declines. Total job offers are falling in many categories of intellectual work, but AI-related postings continue to rise. Indeed interprets this as a sign that employers are placing AI skills on par, if not ahead, of traditional expertise. The result, according to Indeed, is a "two-speed labor market" where overall volume is low but demand for proven AI skills is growing rapidly.

A Marked Division Across Several Sectors

The division is most pronounced in the fields of human resources, accounting, management, marketing, project management, and banking & finance. In marketing, the index of AI-related job postings stands at 341 while the overall index has dropped to 52. Management shows a similar divide at 344 compared to 78.

In intellectual work areas like marketing and management, AI-related postings and overall offers are moving in opposite directions.

Job searches reflect the same shift. Searches for AI-related roles have increased sevenfold since the launch of ChatGPT, according to Indeed. Workers seem to understand where the market is heading and are adjusting accordingly.

The terms "Engineer" (6.4%) and "Trainer" (5.6%) are the ones job seekers most often combine with "AI." Indeed indicates that young workers and career starters are actively seeking structured pathways into the AI economy. Search volumes have decreased from recent peaks over the past few months, although this decline may just be a blip in the overall upward trend.

Searches in the UK for AI-related jobs have recently exploded, with some increases corresponding to the release of major AI models.

A Struggling Labor Market

The surge in AI-related recruitment sharply contrasts with the UK labor market as a whole. Job offers across Great Britain have dropped by 11% since the beginning of 2026 and are now 32% below pre-pandemic levels. Young workers are feeling the pressure the most: graduate job postings are at their lowest seasonal level since the pandemic, and youth unemployment has reached its highest level in over a decade.