AI in 2025 – The Effect On the Job Market

By Thomas Savidge

The UK is positioned to become a major leader in AI, driven by an expected £14 billion in investments from big tech firms. This influx of capital focuses on creating new jobs, boosting productivity, and supporting innovative technology. Below is an overview of recent government announcements, as well as emerging trends in AI and how this will affect the jobs in this exciting area.

This article explores how established AI roles, including Data Engineers, ML Engineers, Heads of AI, AI Ethicists, Prompt Engineers, and Data/AI Governance Managers, along with emerging positions like Knowledge Engineers, Model Validators, and AI Architects will shape the future of AI products.

Government Initiatives Shaping AI Careers

What’s Keir Starmer Doing with AI?

Prime Minister Keir Starmer has set a clear vision to make the UK a world leader in AI, supporting economic growth and job creation. As part of this, his government has endorsed the 50-point AI Opportunities Action Plan, which outlines strategic measures to accelerate economic growth, job creation, and technological leadership.

AI Opportunities Action Plan

A 50-point strategy aimed at accelerating AI growth through collaboration between government, academia, and industry. The goal is to attract global AI talent and establish the UK as a leader in AI innovation.

National Supercomputer Development

A planned 20x increase in computing power by 2030 will support large-scale AI workloads. This initiative is expected to facilitate breakthroughs in deep learning, big data analytics, and advanced simulations.

AI Growth Zones

Specialised AI zones, beginning with a pilot in Oxfordshire, will offer businesses prioritised access to power and infrastructure. These zones are designed to attract start-ups, established tech firms, and investors, creating concentrated hubs for AI innovation.

Regulation vs. Pro-Innovation

The government’s approach to AI regulation relies on existing industry regulators rather than introducing new oversight bodies. The aim is to balance innovation with safety—avoiding excessive red tape while maintaining ethical standards.

AI in Healthcare

With NHS waiting lists at nearly 7.5 million, AI is positioned as a tool to streamline processes, from diagnostics to patient triage and resource allocation. Deep learning applications are expected to improve efficiency without replacing human expertise.

AI Safety Institute

Government backing continues for the AI Safety Institute, focusing on risk mitigation, bias prevention, and ethical AI deployment. This ensures AI models are both trustworthy and safe as adoption increases.

The government also announced the appointment of Matt Clifford, who currently serves as the Vice-Chair of the UK AI Safety Institute’s advisory board, as the Prime Minister’s Advisor on AI Opportunities. With strong connections to AI industry leaders, he is expected to bridge the gap between government policy and private-sector AI advancements.

Hiring Trends and Market Impact

The industry is primed for growth, with over 60,000 AI professionals in the UK. However, recent tax increases, such as the national insurance hike, have prompted many businesses to shift investment from hiring to AI technology adoption. A BCG study found that over half of UK business leaders plan to prioritise AI solutions over expanding their workforce.

While overall hiring may slow in certain sectors, demand for AI and Machine Learning Engineers remains strong as companies look to develop and integrate AI solutions efficiently.

AI’s Role in Supporting, Not Replacing, Jobs

The widespread fear of AI replacing human jobs remains largely misplaced—for now. Instead, AI is increasingly designed to support human decision-making rather than fully automate complex tasks.

Human-First AI

A key trend in AI this year will focus on user-centric design, transparency, privacy, and fairness. They will primarily focus on augmentation of and decision support rather than automation for all but the simplest (and low-risk) tasks.

Decision Support and Augmentation

AI is becoming a co-pilot for professionals rather than a replacement. 

  • In healthcare, AI-driven deep learning models can detect anomalies in scans, flagging potential issues for specialists to review.
  • In customer support, AI-powered knowledge graphs and sentiment analysis tools help guide human agents, improving response quality.
  • Model Validators is an emerging specialist title focused on quantitative techniques to ensure that models are accurate, reliable, and fit their intended purpose. 
  • Knowledge Engineers are specialists who structure expert knowledge in a format that AI systems can interpret, ensuring more effective reasoning and decision-making.

The Next Wave of AI Innovation

Decision Intelligence

By 2026, 75% of Global 5000 companies are expected to implement decision intelligence, AI-driven decision-making processes that integrate analytics and machine learning to enhance business operations.

Tech giants like Google, IBM, and Microsoft, along with emerging players such as DataRobot, H2O.ai, and Pyramid Analytics, are leading the development of decision intelligence platforms. These solutions aim to reduce integration challenges by combining AI and traditional analytics into a unified system.

AI Leadership and Architecture

As AI strategies become more complex, companies need leaders to translate AI capabilities into business value. Two key roles set for increased demand include:

  • Heads of AI – Responsible for aligning AI initiatives with business goals, ensuring scalable deployment.
  • AI Architects – Specialists in designing AI infrastructures that balance cost, performance, and governance requirements.

Another emerging role, Decision Engineers, will focus on integrating AI-driven decision-making into human workflows, ensuring efficiency while maintaining accountability.

The Rise of AI Agents

Autonomous AI agents capable of perceiving and making decisions in digital or physical environments are gaining traction. These systems are evolving into multi-agent ecosystems, where an orchestrator AI breaks down tasks for specialised sub-agents.

Companies developing AI agent-based solutions will increasingly seek AI Engineers with expertise in reinforcement learning, knowledge graphs, and causal AI.

Emerging AI Technologies:

  • Embodied AI – AI shifting from cloud-based models to robotics and autonomous vehicles, requiring significant computational advancements.
  • Edge AI – AI processing on local devices (smartphones, IoT sensors) for improved speed and privacy.
  • Causal AI – AI systems that understand cause-and-effect relationships, enhancing reasoning capabilities beyond pattern recognition.

AI Trust and Governance

Many organisations remain cautious about AI’s potential risks, particularly regarding Generative AI, which continues to struggle with accuracy and reliability.

Composite AI

To mitigate risks such as AI “hallucinations,” businesses are adopting Composite AI, combining multiple AI approaches (e.g., LLMs + knowledge graphs) to improve accuracy, especially in high-risk domains like engineering and financial modelling.

AI Guardrails

Filters can be applied to identify toxic words, private data, or other violations before sharing output. LLMs can even validate their outputs through a “self-reflection” process or be cross-checked by other LLMs.

“Who guards the guardrails?” remains an important governance question. Guardrails are not a replacement for comprehensive AI governance frameworks, to prevent bias and ensure transparency and accountability.

So AI and Data Governance professionals will remain relevant for the foreseeable.

Conclusion

After two challenging years for AI hiring, 2025 is set to be a turning point. Demand for AI leadership roles (Heads of AI, AI Architects) is expected to rise as businesses seek strategic direction. Investment in AI governance and ethical oversight will expand, particularly in sensitive sectors like healthcare. Emerging AI job titles, such as Knowledge Engineers and Model Validators, will be instrumental in advancing AI’s next phase. For businesses to fully leverage AI, hiring the right talent across technical and leadership roles will be essential to building effective, scalable solutions.

If you’re looking to find top-tier AI talent, whether on a permanent or freelance basis, Harnham is here to help. Reach out to Thomas Savidge on LinkedIn or email ThomasSavidge@harnham.com for more information on how we can assist you with your recruitment needs.