AI automation poses a major challenge for transport jobs

The transport sector is expected to be the first industry to face large-scale AI automation, particularly in frontline driving roles. Buses, taxis, trains, coaches and heavy goods vehicles are seen as especially vulnerable as autonomous technologies continue to mature.

Employers are increasingly attracted to AI automation, such as automated vehicles, because they can operate continuously without the driving-time limits imposed on human workers. However, this makes automation economically appealing, especially in freight and logistics, where efficiency and round-the-clock operation are critical.

The shift could lead to the displacement of hundreds of thousands, or even millions, of transport workers. Concerns are growing over the lack of alternative job opportunities, as investment in reskilling across the UK has remained limited despite ongoing discussions about labour shortages.

Beyond employment, AI automation may have broader economic implications. Large-scale job losses would reduce tax revenues, potentially forcing governments to reconsider taxation policies, including taxing activities that are currently untaxed to offset losses from employment income.