The City of London Corporation has issued a stark warning about the disproportionate impact of artificial intelligence and automation on female workers in the technology and financial services sectors. According to a comprehensive new report, women in these industries face significantly higher risks of job displacement compared to their male counterparts, with mid-career professionals being particularly vulnerable due to outdated hiring practices.
Mid-Career Women Overlooked in Digital Hiring
The governing body for London's Square Mile financial district found that experienced female workers with at least five years' professional experience are being systematically overlooked for digital roles within tech, finance, and professional services. These sectors have traditionally struggled with gender representation, and the report identifies rigid recruitment processes as a key barrier to progress.
Automated CV screening systems are contributing to this discrimination by failing to account for career gaps related to childcare or eldercare responsibilities. The report highlights how these systems often narrowly assess professional experience without considering transferable skills or career potential, creating what Dame Susan Langley, the Mayor of City of London, describes as a "missed opportunity for innovation."
Automation Threatens 119,000 Clerical Roles
The research presents alarming projections about the scale of potential job displacement. Over the next decade, approximately 119,000 clerical positions within tech and financial services - roles predominantly occupied by women - could be eliminated through automation. This represents a substantial workforce challenge that requires immediate attention from employers and policymakers alike.
Interestingly, the report calculates that proactive reskilling initiatives could save companies up to £757 million in redundancy payments. By investing in workforce development rather than displacement, organisations could transform potential job losses into opportunities for growth and innovation.
Reskilling as a Strategic Imperative
The City of London Corporation is urging employers to prioritise reskilling programmes specifically targeting female workers in non-technical roles, particularly those in clerical positions most vulnerable to automation. This approach represents a fundamental shift from traditional hiring practices that focus on past technical experience toward strategies that emphasise potential and adaptability.
"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," stated Dame Susan Langley. "Focusing on talent, adaptability and opportunity will ensure the UK continues to lead on innovation and remains a global hub for digital excellence."
The Wider Context of Workforce Anxiety
These findings emerge against a backdrop of growing concern about AI's impact on employment. Recent surveys indicate that approximately a quarter of UK workers fear their jobs could disappear within five years due to artificial intelligence advancements. Union leaders have joined the call for companies to commit to substantial investment in workforce skills and training programmes.
Paradoxically, while women face exclusion from digital roles, the report reveals that more than 12,000 digital vacancies went unfilled in these sectors during 2024 alone. Companies have attempted to address talent shortages through above-average wage increases, but the research suggests that financial incentives alone cannot solve the structural problems in hiring practices.
Economic Consequences of Inaction
The report delivers a sobering economic warning: if current trends continue, the widening digital talent gap could persist until at least 2035, potentially costing the UK economy over £10 billion in lost growth. This projection underscores the urgent need for systemic change in how organisations identify, develop, and retain digital talent.
The situation is further complicated by retention challenges within the tech sector, where an estimated 60,000 women leave their roles annually due to factors including limited advancement opportunities, inadequate recognition, and pay disparities. This creates a compounding effect that threatens both gender diversity and sector competitiveness.
As automation accelerates and AI capabilities expand, the City of London Corporation's report serves as a critical call to action for employers across the technology and financial services sectors. The recommendations emphasise that building inclusive, adaptable workforces through strategic reskilling represents not just an ethical imperative but a crucial economic strategy for maintaining the UK's position as a global digital leader.
