IBA Report Flags AI Risks in 48 Countries as 54% of UK Firms Face Skill Shortages
Updated
Updated · International Bar Association · May 27
IBA Report Flags AI Risks in 48 Countries as 54% of UK Firms Face Skill Shortages
3 articles · Updated · International Bar Association · May 27
Summary
Lawyers in 48 countries told the IBA Global Employment Institute that AI, skills shortages and employee wellbeing are now the main forces reshaping employment law and HR practice in 2024-2025.
AI use is spreading across recruitment, monitoring, workflow automation and data analysis, but employment-specific rules remain limited and fragmented, pushing employers and regulators toward tighter governance, transparency and data-protection controls.
54% of UK organisations reported skill shortages as of June 2025, reflecting wider pressures from ageing populations and skilled migration; the report points to reskilling, upskilling and targeted immigration as the main responses.
85 million jobs could be displaced by automation while 97 million new roles may emerge, and the report says the bigger challenge is managing workforce transition alongside rising mental-health, flexible-work and compliance demands.
The study also highlights persistent dismissal and pay disputes, return-to-office policies of three to five days a week, and new rules such as the EU Pay Transparency Directive due in 2026.
AI is creating millions of jobs, so why is it slowing the hiring of young workers in key sectors?
Are new workplace mental health laws reducing burnout, or just creating more corporate compliance paperwork?
Argentina's new law excludes gig workers from protection. Is this a blueprint for the future of global labor rights?
Navigating the 2024-2025 Global Workplace: AI, Skills Gaps, Employee Wellbeing, and Regulatory Change
Overview
The International Bar Association’s 14th Annual Global Report, published in May 2026, provides a vital outlook on the key challenges and trends shaping workplaces worldwide for 2024-2025. The report highlights three main pillars: the growing influence of Artificial Intelligence, persistent skills shortages, and the critical importance of employee wellbeing. AI is rapidly changing job roles and how work is done, while ongoing skills gaps emphasize the need for upskilling. At the same time, organizations must focus on employee wellbeing to maintain productivity and retention. Together, these factors are redefining the global workplace and require adaptable strategies from employers and policymakers.