Sadiq Khan warns AI could trigger mass unemployment in London without urgent action

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London Mayor Sadiq Khan delivered a stark warning at Mansion House that AI could become a 'weapon of mass destruction of jobs' without proper controls. He announced a new AI task force and free training for Londoners while urging faster regulation to protect workers in finance, creative industries, and professional services from the colossal impact of automation.

Sadiq Khan Issues Stark Warning on AI and London Jobs

London Mayor Sadiq Khan has delivered a forceful warning that AI could trigger mass unemployment across the capital unless urgent action is taken to control its deployment. Speaking at his annual Mansion House speech on Thursday, Khan argued that London stands "at the sharpest edge of change" due to its heavy reliance on white-collar workers in vulnerable job sectors including finance, creative industries, and professional services such as law, accounting, consulting, and marketing

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. The Labour mayor framed the challenge as a clear choice: "seize the potential of AI and use it as a superpower for positive transformation and creation or surrender to it and sit back and watch as it becomes a weapon of mass destruction of jobs"

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Source: Sky News

Source: Sky News

The Impact of AI on London's Labour Market

Khan emphasized that the impact of AI on the capital's labour market will be "nothing short of colossal," with entry-level and junior positions likely to disappear first

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. Unlike the Industrial Revolution, which primarily affected manual labor, this technological shift will hit white-collar workers hardest. City Hall polling reveals that more than half of workers in London expect AI to affect their jobs in some way within the next 12 months

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. Research highlighted in the speech suggests that 70% of skills in the average job will have changed by 2030

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. Across the UK, up to 3 million low-skilled jobs in trades, machine operations and admin roles could disappear by 2035 because of automation and AI, according to a November report by the National Foundation for Educational Research

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Source: ET

Source: ET

New AI Task Force and Free Training Initiative

In response to these challenges, Khan announced that City Hall is launching a London AI task force focused on the future of work, bringing together expertise from government, businesses and the AI sector to assess the potential impact on London's jobs market

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. The taskforce will provide recommendations for embedding AI skills at every level in the workforce and equipping the next generation with necessary tools

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. Alongside this initiative, Khan announced free AI skills training courses open to all Londoners, enabling them to take advantage of the new technology

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. The mayor stressed there is "a moral, social and economic duty to act" to ensure new jobs are created to replace those that will disappear

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Call for Faster AI Regulation

Khan called for faster AI regulation and skills reform, warning that the UK has been too slow to respond to technological change in the past. He pointed to the growth of social media, which has led to a youth mental health crisis, a surge in online abuse and a dangerous rise in misinformation

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. "This time, we need to move faster and not make the same mistakes again," he said

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. Khan positioned London as a potential global leader in AI development, arguing that technology shaping the future needs to be made in the capital "with our values hardwired into the code"[3](https://news.sky.com/story/sadiq khan-ai-could-usher-in-new-era-of-mass-unemployment-13494305). He emphasized that used responsibly, AI could enable transformation of public services, turbocharge productivity and tackle complex challenges, but used recklessly could usher in a new era of mass unemployment

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Global Context and Differing Forecasts

The debate continues over whether AI will destroy jobs, with answers remaining elusive. Prime Minister Keir Starmer's office responded to Khan's speech by acknowledging that "AI is going to reshape the world of work," noting that some jobs will be more impacted than others while emphasizing the new roles and opportunities the technology will create

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. Management consultancy McKinsey recently forecast that 30 percent of US jobs could be automated by 2030, with 60 percent significantly altered. Meanwhile, analysts from US research firm Gartner have suggested that AI will create more jobs than it eliminates by 2027

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. The United Nations recently warned that AI and automation could exacerbate global labour market challenges, particularly for educated young people in wealthier countries seeking their first high-skill jobs

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. Khan's intervention signals that local leaders are taking proactive steps to shape AI's trajectory rather than waiting for the technology to dictate terms, with the finance industry and professional services watching closely as the capital attempts to balance innovation with worker protection and address growing inequality concerns.

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