Written question WQ97580
- Asked by
- Luke FletcherPlaid
- To be answered by
- Cabinet Secretary for Economy, Energy and Planning
- Tabled
- Due
- Answered
- Time to answer
- 7 days
Question
What assessment has the Government made of areas, sectors and demographic groups that are most likely to be negatively impacted by job displacement due to AI?
Answer
Answered by Cabinet Secretary for Economy, Energy and Planning
The Welsh Government recognises the significant benefits to economic productivity and public sector efficiency from the adoption of AI technologies. We also remain mindful of the risks and impacts AI could have on the workforce, human rights and wider society.
Our Wales Economic and Fiscal Report published in October 2025 indicates that AI may automate routine tasks, leading to potential workforce displacement in clerical and service sectors, while also changing the nature of many other roles. However, demand is expected to grow for jobs requiring creativity, problem-solving, and interpersonal skills.
Estimates of jobs affected by AI vary widely. The IMF suggests around 40% of jobs globally, and up to 60% in advanced economies, are exposed to AI, highlighting the need for continual review and flexible policies to manage its impact on labour markets. The impact of AI on individual demographic groups will be dependent on a number of factors including the mix of sectors, professions and job types affected and the speed of adoption in different sectors and areas of Wales. This is an area where we will want to continue to assess and understand in more detail.
While the potential impact of AI remains uncertain, changes are expected to happen gradually and reflect the broader, ongoing development of the labour market.