By Julia Parker – JBizNews Desk
LONDON — Indeed said artificial intelligence is creating a two-speed jobs market in the UK, with demand concentrating in experienced workers and roles directly tied to AI rather than lifting hiring evenly across the technology sector. The shift matters for employers, job seekers and investors because it points to widening skills gaps, higher pay pressure in specialist roles and weaker prospects for entry-level digital workers.
The jobs platform said its latest labour-market analysis showed AI-related hiring is becoming more selective as companies move from experimentation to implementation. Businesses are seeking workers able to deploy AI tools in commercial settings, manage data risk and improve productivity, while general technology roles are seeing less uniform demand.
“Demand is concentrating around experienced workers and roles directly connected to AI, rather than flowing evenly through the profession,” said Jack Kennedy, senior economist at Indeed.
The findings add to evidence that AI is reshaping hiring before it produces broad employment gains. For companies, the near-term effect is likely to be a reallocation of recruitment budgets toward machine learning, data engineering, AI product management and governance roles. That could raise labour costs in scarce-skill areas even as vacancies remain subdued elsewhere.
UK employers have been operating in a cooler labour market after higher interest rates, weaker growth and rising payroll costs curbed hiring. Data from the Office for National Statistics have shown vacancies falling from post-pandemic peaks, while wage growth has remained a key concern for the Bank of England as it assesses inflation pressures.
AI hiring may complicate that picture. Companies trying to automate customer service, software development, logistics and back-office processes still need senior staff to integrate systems and measure returns. That gives experienced candidates more bargaining power and leaves younger workers facing tougher competition for roles that once served as entry points into technology careers.
For business owners, the split creates an operational challenge. Firms that delay investment in AI skills risk falling behind competitors using automation to reduce costs or speed up decision-making. But those that hire aggressively may face high salaries and uncertainty over which roles will deliver measurable productivity gains.
Recruiters and training providers could benefit if employers turn to external hiring, certification and reskilling programmes to close capability gaps. At the same time, weaker demand for broader tech roles may weigh on staffing agencies exposed to lower-margin volume recruitment.
The shift is also relevant for investors watching enterprise software, outsourcing and recruitment companies. A labour market tilted toward AI specialists supports spending on tools and services that help companies deploy the technology, but it may also expose slower adoption among smaller firms with limited budgets.
Indeed’s analysis suggests AI is not producing a simple expansion in digital employment. Instead, hiring is becoming more concentrated around workers who can link the technology to revenue, efficiency and compliance.
That leaves policymakers and employers facing the same practical issue: how to broaden access to AI-related skills before the gap between senior specialists and the wider workforce becomes more costly.
JBizNews Desk | London
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