Women in tech and finance face higher risk from AI job losses, report warns

Wednesday, February 4, 2026

Women working in the UK’s technology and financial services sectors face a heightened risk of job displacement as artificial intelligence and automation reshape recruitment and employment practices, according to a new report from the City of London Corporation.

The report highlights concerns that automated hiring systems and narrowly defined recruitment criteria are disproportionately disadvantaging women, particularly those at mid-career level or with non-linear career paths. Women with career breaks linked to caring responsibilities are among those most likely to be overlooked by automated screening tools, despite having valuable experience and transferable skills.

The findings suggest that as employers increasingly adopt AI-driven recruitment and workforce planning tools, existing inequalities risk being reinforced rather than reduced. The report estimates that tens of thousands of clerical and administrative roles — many of which are held by women — could be affected by automation over the coming decade.

In response, the City of London Corporation is urging UK employers to rethink recruitment and talent development strategies, placing greater emphasis on skills, adaptability and potential rather than rigid role requirements. The report also calls for increased investment in reskilling and upskilling programmes to help workers transition into future roles.

Dame Susan Langley, Mayor of the City of London, said employers have a critical role to play in shaping a more inclusive future of work.

“By investing in people and supporting the development of digital skills within the workforce, employers can unlock enormous potential and build stronger, more resilient teams. Focusing on talent, adaptability and opportunity will ensure the UK continues to lead on innovation and remains a global hub for digital excellence.”

The report comes amid wider debate about the impact of AI on employment and the fairness of automated recruitment systems. Employment experts and equality organisations have warned that without proper oversight, algorithmic tools can unintentionally replicate existing biases, particularly against women and other under-represented groups.

The City of London Corporation argues that inclusive recruitment practices, combined with transparent use of technology and targeted workforce development, are essential to ensuring that the benefits of AI are shared fairly across the labour market.

As UK employers continue to adopt AI and automation at scale, the report concludes that proactive action is needed to prevent recruitment systems from widening gender gaps and to ensure women are not left behind in the transition to a more digital economy.