Women in Tech and Financial Services: Why AI Job Losses Don’t Have to Mean Lost Talent

Women in Tech and Financial Services:

Why AI Job Losses Don’t Have to Mean Lost Talent

Artificial intelligence and automation are reshaping the world of work at speed - particularly across tech, financial and professional services. But while the conversation often focuses on innovation and efficiency, new research suggests the impact isn’t being felt evenly.

According to a recent report by the City of London Corporation, women working in tech and financial services face a disproportionately higher risk of job displacement from AI and machine-driven work than their male peers. Without the right intervention, this could deepen existing gender gaps - at the exact moment organisations are struggling to find digital talent.

The roles most at risk - and who they affect

The report estimates that around 119,000 clerical and administrative roles across tech and financial and professional services could be displaced by automation over the next decade. These roles are predominantly held by women, particularly those at mid-career level.

Clerical and administrative positions are among the most exposed to AI, yet the women performing them often bring years of organisational knowledge, problem-solving ability and transferable skills - qualities that are rarely captured by automated hiring systems.

By 2035, it’s estimated that hundreds of thousands of women’s jobs could be affected by AI and automation. Without effective reskilling pathways, firms could face up to £757 million in severance costs, alongside the loss of institutional knowledge and customer insight.

Mid-career women: overlooked, not underqualified

One of the report’s most striking findings is how mid-career women are being systematically overlooked for digital roles.
Rigid hiring criteria, narrow definitions of “relevant” experience and increasing reliance on automated CV screening all favour linear career paths. This disproportionately disadvantages women who have taken career breaks - often for caring responsibilities - or who have developed valuable skills outside traditional tech routes.

In 2024, women made up just 21% of the UK tech workforce, dropping to 17% in key digital roles within financial services. Yet this underrepresentation isn’t due to a lack of capability or ambition. Many mid-career women already possess in-demand transferable skills such as stakeholder management, analytical thinking and communication - all critical for digital roles.

As the report highlights, the filters traditionally used to screen candidates often say little about a person’s ability to learn, adapt or perform in a digital role.

A growing digital talent gap

At the same time, employers are facing a severe digital skills shortage.
In 2024 alone:

• 12,100 digital roles across financial, professional services and tech went unfilled
• Talent shortages cost these sectors nearly £1 billion in lost productivity
• Profit losses totalled £296 million, with individual vacant digital roles costing up to £78,600 in productivity per year

If this gap persists, the UK economy could lose £10.8 billion in productivity and £3.3 billion in profits over the next decade.

The irony? A large, capable talent pool already exists - but is being missed.

Reskilling isn’t just inclusive - it’s cost-effective

The City of London Corporation’s Women Pivoting to Digital Taskforce argues that the solution isn’t higher wages alone, but rethinking how talent is sourced and developed.

Reskilling an existing employee rather than making them redundant and rehiring externally can save organisations an average of £49,000 per employee. Collectively, firms across financial and professional services and tech could avoid £757 million in severance costs by reskilling women displaced by automation.

Employers such as Lloyds Banking Group and Aviva are already investing in structured reskilling programmes and alternative recruitment routes - with some reporting 80–90% conversion rates into permanent roles. As Dame Susan Langley, Lady Mayor of the City of London, puts it:

“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.”

What this means for employers now

AI isn’t just changing jobs - it’s exposing flaws in how work is designed, how talent is assessed and who is supported through transition.

For employers, the opportunity is clear:

• Look beyond rigid hiring criteria and automated keyword filters
• Invest in structured reskilling programmes, particularly for mid-career women
• Focus on potential, adaptability and transferable skills, not just past job titles

Organisations that lead on digital and AI adoption already outperform their peers. Those that combine this with inclusive talent strategies will be better positioned to grow, compete and retain expertise in an increasingly challenging labour market.

At Huntress, we work closely with employers navigating skills shortages, workforce change and evolving role requirements. As AI continues to reshape the landscape, the businesses that succeed will be those willing to rethink traditional pathways - and recognise the value of talent they already have.

Sources:

https://www.theglobalcity.uk/PositiveWebsite/media/Research-reports/Untapped-Digital-Talent-the-3bn-Opportunity.pdf

https://www.theguardian.com/business/2026/feb/04/women-tech-finance-higher-risk-ai-job-losses-report