UK scale-up founders fear AI could trigger job cuts

Most UK scale-up founders say the workforce is not ready for widespread adoption of artificial intelligence. Many are slowing recruitment, and some expect job cuts within a year, according to a new survey by entrepreneur network Helm.

The findings come as organisations across the economy test generative AI tools in everyday work, highlighting how quickly AI is influencing labour planning in fast-growing companies.

In a poll of 400 Helm members, 93% said they did not believe the UK workforce is adequately prepared for widespread AI adoption. Another 3.5% said it was prepared, and 3.5% said they did not know.

The survey found that 58% are delaying or reducing new hires because of increased AI use. A further 35% are not changing hiring plans, while 7% were unsure.

On headcount reductions, 33% expect AI adoption to lead to job cuts in their business within the next 12 months. Some 64% do not expect cuts, and 3% did not know.

Hiring pressure

Founders often treat hiring as a direct lever for growth, so a majority reporting delays suggests a shift in operating plans. Respondents linked the change to increased AI adoption, which can replace some tasks and reshape roles in customer support, sales operations, marketing, finance and software development.

The results also suggest the labour impact is not limited to recruitment. One in three expecting job cuts in the next year indicates some businesses anticipate near-term substitution, rather than redeployment, as AI tools spread into routine workflows.

Helm's leadership described the issue as a skills gap that is pushing companies towards automation instead of redesigning jobs around new tools. It argued that earlier investment in training would change outcomes for both productivity and employment.

"AI is forcing business leaders to make some difficult decisions about jobs and hiring. Many founders are under pressure to move fast, stay competitive, and rethink roles as automation accelerates," said Andreas Adamides, Helm's CEO.

"The bigger opportunity now is to upskill workers for higher-value roles and use AI to drive sustainable growth. If businesses and policymakers invest in skills early, AI can become a powerful engine for productivity rather than job insecurity," Adamides added.

Training focus

The poll also drew comment from Joshua Wöhle, founder and CEO of AI training company Mindstone and a Helm member. He focused on the difference between using AI for automation and using it to reshape how staff work.

"AI has the potential to be transformational for British business, but the skills gap is making people focus on automation … instead of augmentation, where generative AI really can make a difference," Wöhle said.

"Automation leads to job losses versus augmentation that moves the top line. Ultimately, this comes down to training," he added.

Mindstone describes itself as an AI training company, and Wöhle previously co-founded Super Awesome, which he exited. Helm said the findings reflect views among founders who are already making operational changes around AI, including workforce planning.

For policymakers, the numbers add to the debate about how quickly the UK can build AI literacy across the workforce. Firms adopt tools at different speeds, but scale-ups can change processes and staffing quickly when cost and time pressures rise.

The survey also points to a messaging gap inside organisations. Many employees encounter AI first through productivity tools and copilots. Managers then assess whether work can be reorganised, and recruitment decisions often follow.

Helm said businesses should shift from using AI mainly to automate roles to using it as part of workforce development. That would require structured training, clearer job redesign, and changes to how work is measured and managed.

The poll was conducted online among 400 Helm members and asked founders about preparedness, hiring and the prospect of job cuts linked to AI adoption.

Helm describes itself as the UK's largest entrepreneur network for scale-up founders and chief executives. Founded in 2003, it was known as The Supper Club until 2022.

Its membership profile points to firms that have moved beyond the start-up stage. The average Helm member is a founder of a company with annual turnover of £21 million, and the 400 members surveyed lead businesses with a combined annual revenue of £8 billion.