A new study by investment bank Morgan Stanley indicates that artificial intelligence (AI) adoption has led to greater net job losses in the UK than in other major economies, while simultaneously increasing productivity across sectors including transport, logistics, and infrastructure.

UK companies using AI reported a net decline of around 8% in employment, with roles most affected in routine operational positions, such as scheduling, route planning, vehicle maintenance administration, and ticketing operations.

Transport companies surveyed highlighted that AI applications in fleet optimisation, predictive maintenance, automated dispatch, and real-time traffic management had reduced the need for manual administrative and monitoring roles. Conversely, these applications enabled faster decision-making, reduced downtime, and improved efficiency, contributing to an average productivity increase of 11.5% for firms that implemented AI solutions.

While other major economies, including the United States, Germany, Japan, and Australia, also reported productivity gains from AI, the UK was unique in seeing a net reduction in jobs, which the report ascribes to a combination of tighter labour markets, cost pressures, and higher exposure of certain sectors—such as transport and logistics—to automation technologies. Roles in data entry, operational planning, and routine inspection tasks were among those most frequently replaced or augmented by AI-driven systems.

The study highlights the dual effect of AI: while it can improve operational efficiency and service delivery, it can also displace certain types of jobs. The researchers stress that these findings should inform policy measures to balance technological adoption with workforce reskilling, particularly in transport and logistics, where AI is likely to reshape roles rather than eliminate the need for human workers entirely. There is growing emphasis on training employees to manage AI-assisted systems and focusing on higher-skilled positions such as AI oversight, data analysis, and operational strategy within the sector.

The study highlights the need for governments and companies to plan for the transition of affected workers while leveraging AI’s potential to enhance productivity, efficiency, and service delivery across the UK’s transport network and related sectors.

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