Britain’s most AI-exposed sectors foot biggest tax bill
The UK sectors most exposed to artificial AI are concentrated in the same parts of the economy that generate the bulk of tax revenues, according to government and industry data.
A 2026 assessment from the UK government shows AI is most applicable to tasks involving data processing, analysis and routine cognitive work, activities concentrated in sectors such as finance, professional services and information industries.
“AI is more likely to affect occupations involving cognitive tasks rather than physical tasks,” the report writes.
Those sectors dominate the UK’s economic output and tax base. Financial and related professional services generated £110.2bn in tax in 2024, equivalent to 12.3 per cent of total receipts, making it one of the largest single contributors to the Exchequer.
Recent official data also shows AI adoption is already concentrated in these same parts of the economy.
The Office for National Statistics found service industries, which include finance and business services, have higher uptake, with nine per cent of firms using AI compared to five per cent in production industries and three per cent in construction.
Government analysis suggests the scale of exposure is significant but uneven across sectors, with between 10 and 30 per cent of jobs estimated to be automatable using current AI technologies, and higher-skilled roles more likely to be affected than manual occupations.
Hiring shifts and skills pressures
More recent labour market data points to early changes in hiring and skills demand rather than widespread job losses.
The Department for Science, Innovation and Technology (DSIT)’s 2025 AI labour market survey found 97 per cent of employers report at least one AI-related skills gap, with 57 per cent citing shortages in technical capabilities.
The parliamentary report doubles down on the scale of uncertainty around the labour market impact, noting that “AI is expected to both displace and create jobs, with the net effect still unclear”, as adoption accelerates.
At the same time, research cited by the Bank of England shows vacancies in AI-exposed occupations were around 5.5 per cent lower than expected by mid-2025, as hiring begins to slow in roles where AI can take on routine tasks.
AI is expected to both displace some roles and create new ones, particularly in technology and data-related fields, with outcomes depending on how quickly the workforce adapts.
Longer-term projections suggest the scale of change will continue to grow. Government modelling indicates jobs involving core AI activities could account for around 12 per cent of the workforce, roughly 3.9 million roles, by 2035, with a further 9.7 million jobs incorporating AI in some capacity.