Women in technology and finance face greater threat of job losses due to AI, according to report.

A recent report has highlighted a troubling trend: women working in technology and financial services are facing a higher risk of job loss due to the growing implementation of artificial intelligence (AI) and automation, compared to their male counterparts. The findings reveal a concerning sidelining of experienced female professionals, attributed to “rigid hiring processes” that limit their opportunities in these sectors.

This report, published by the City of London Corporation, sheds light on the plight of “mid-career” women, those who possess at least five years of relevant experience. These women are frequently overlooked for digital roles in the tech and financial services arenas, fields where they have historically been underrepresented. The findings suggest systemic biases at play, especially in how applicants are evaluated during the hiring process.

Specifically, the City of London Corporation discovered that women were often victims of stringent, and at times fully automated, screening procedures. These processes failed to consider significant career gaps that may arise from responsibilities such as caring for children or relatives. Moreover, such rigid systems often narrowly defined professional experience, overlooking the breadth and depth of candidates’ capabilities.

To combat these discriminatory practices and help women thrive in their careers, the City of London Corporation is urging employers to invest in re-skilling female employees who are not currently in technical roles. This is especially pertinent for those in clerical positions, which are most susceptible to being automated in the near future. With significant sector transformations on the horizon, it is crucial to equip the workforce with the necessary skills to adapt.

The report emphasizes the startling statistic that approximately 119,000 clerical roles—primarily filled by women—within the tech and financial services sectors, are predicted to be displaced by automation within the next decade. If companies focus on re-skilling these workers, they could avoid redundancy costs that could amount to a staggering £757 million, according to the findings.

By prioritizing the upskilling of their workforce, employers can shift their focus toward the potential of candidates rather than solely their past technical experience. This perspective is crucial, as it has been estimated that around 60,000 women leave their tech roles annually due to various issues, including lack of career advancement, insufficient recognition, and inadequate compensation.

Dame Susan Langley, the mayor of the City of London, emphasized the importance of investing in workforce development. She stated, “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.”

Polling data reveals that a significant portion of the UK workforce—about one in four workers—is concerned about the risk of job loss due to AI in the coming five years. This alarming sentiment is echoed in a survey by the international recruitment firm Randstad. In light of these findings, union leaders are urging companies to pledge resources toward workforce skills development and training initiatives to mitigate the impending threat.

Additionally, the City of London Corporation pointed out that despite the increasing challenges in finding qualified talent—evidenced by over 12,000 digital vacancies remaining unfilled in 2024—women are still frequently passed over for available roles. This not only reflects a lack of inclusivity but also poses a serious challenge to the sustainability and growth of businesses in the tech and finance sectors.

In response to labor shortages, companies have attempted to increase wages above the national average, thinking this could solve their hiring dilemmas. However, the report indicates that merely raising pay is not a comprehensive solution. It warns that the widening gap in digital talent is expected to extend until at least 2035, and if this trend continues, the UK could miss out on over £10 billion in economic growth.