The UK should put AI to work to fix the broken link between work, health and productivity

Sam Trendall February 10, 2026 in Education and skills, Opinion - 4 Minutes

In this piece for PublicTechnology, former cabinet minister and current CIPD president Chloe Smith explores how new tech can boost the economy and help thousands of people return to work

I hope 2026 brings opportunity for thousands of people.

It won’t be an easy year in the British economy, but I see a route to growth and a way to match many people with their hopes and dreams.

Amid concerns of weak growth, rising employment costs and subdued private sector confidence, employers and workers alike need more than ever before to flourish with the right person in the right job.

As technology is changing many workplaces, talent and training will come to the fore this year. The labour market outlook produced by CIPD, HR’s professional body, reports that strategic workforce planning is essential right now for many British businesses.

Technology can also change how we tackle unemployment. With AI tools advancing rapidly, we have an unmissable, once-in-a-generation opportunity to use AI innovation to transform how people get into work, and how employers find and retain talent.

Employers in 2026 could look closely at using AI to reach untapped talent pools, including outreach to those who might not yet be used to digital jobsearch

One of the biggest strategic issues in our economy is that one in five people of working age are not in jobs. Many want to work, but face challenges including health conditions or disabilities.

The scale of this problem is stark.

The Department for Work and Pensions estimates that the cost of economic inactivity could reach as much as £330bn per year. There are 2.8 million people sidelined by long-term sickness in the UK.

That is not just a welfare issue. It is a productivity crisis that employers feel every day through skills shortages, vacancies that go unfilled, and workforces under strain. And it’s a tragedy for those who want to find the right opportunity.

Sir Charlie Mayfield’s recent review into health and work rightly puts this challenge in the spotlight, making clear that the current system is no longer fit for purpose. We need a new approach that supports people earlier, better connects health and employment, and works for employers as well as jobseekers.

Tech will be significant: AI and new service platforms will drive innovation.

I work with award-winning pioneers in the UK tech sector, and I believe it’s possible to put AI to work to tackle the major trend of economic inactivity. Right now, UK companies are giving employers groundbreaking tools for better HR – and tech is offering individuals much more choice too in their learning, development and careers.

AI-powered systems can already do these things. These tools not only increase engagement but also lead to more successful job placements, with international evidence showing uplifts of up to 20% when AI-assisted matching is used.

The human touch
Crucially, this is not replacing the human touch, it’s freeing it, allowing more time for the empathetic conversations that work best. AI can strip away bureaucratic tasks, giving coaches the space to focus on those who need intensive, personalised support. Equipped also with faster, more comprehensive information than ever before, jobseekers can now more easily find options for the right job and the right support in their local area.

The prize for Britain is huge.

With the right reforms, we could get 500,000 more people back into work, save £2.7bn a year from the welfare budget by 2028, and spare the economy £66bn a year in lost productivity by 2030.

For employers, this is a clear business case resting on access to talent, organisational effectiveness, resilience and growth. Employers in 2026 could look closely at using AI to reach untapped talent pools, including outreach to those who might not yet be used to digital jobsearch (after all, most workers across the globe are rapidly developing new skills).

The government should accelerate this idea in the new jobs and careers service. A modern employment support system that reflects technology already widespread in how people live and work would make it easier for businesses to successfully engage, recruit, develop and retain staff and build sustainable workforces.

In 2026, technology will keep changing our lives. Let’s put AI to work, to help people to secure work.

Workplaces are changing, employers’ needs are changing, people’s expectations are changing – and through it all, matching people with the right opportunity and support matters more than ever.

Rt Hon Chloe Smith (pictured above right) is the president of Chartered Institute of Personnel and Development and the former secretary of state for work and pensions, and science, innovation and technology. She recently contributed to the Unlocking Britain’s Talent whitepaper from tech firm Adzuna.