Spotlight: Impact of AI on European offices

In the publication "Spotlight: Impact of AI on European offices" by Savills, authors Mike Barnes, Christina Sigliano, and Andrew Barnes explore the implications of artificial intelligence (AI) on office environments across Europe. The report highlights both short-term disruptions and long-term transformations within the workforce due to AI advancements.

AI is anticipated to cause job displacement in the short to medium term. However, it is expected to support office-based employment in the long run, as the focus shifts toward utilizing AI tools. This adaptation allows employees to allocate more time to interactive, people-centric, and creative roles. Recent evidence suggests that AI's influence on traditional office positions is significant, with a noted slowdown in new job openings correlating with increased AI adoption. The dotcom boom serves as a historical parallel, where initial tech advancements led to reduced hiring but eventually fostered job growth as workers reskilled. In tandem, substantial investments are being made by tech giants into AI, with over $750 billion allocated for infrastructure to support AI models in 2025 and 2026.

Research shows that while AI adoption may lead to job displacement, it is also predicted to create new roles, such as AI engineers and data scientists. Oxford Economics forecasts a 0.4% annual growth in EU office-based employment over the next decade, particularly within the information and communication sectors. These sectors are likely to benefit more from AI due to their lower susceptibility to automation. The report indicates that AI's role in enhancing productivity is significant, with potential increases of up to 10%. However, it also warns of job displacement in areas heavily reliant on automation, particularly in finance and insurance, where routine tasks are prevalent.

Employers are adjusting their recruitment strategies, primarily hiring more experienced workers as entry-level job vacancies decline. Data shows that in the UK, entry-level vacancies fell from 29% in 2022 to 22% in 2025. Meanwhile, workers express a willingness to retrain and adapt their skill sets to accommodate the evolving workplace landscape influenced by AI. The report highlights that while AI may streamline operations, it also necessitates human oversight, as many workers believe AI will transform their jobs in the coming years.

AI is reshaping office design by necessitating enhanced digital connectivity and energy efficiency. As data centers become critical infrastructure, landlords are increasingly relocating communication rooms off-site to reduce energy consumption. This shift is leading to the conversion of traditional office spaces into data centers, driven by the growing demand for data storage. The design of workplaces must also adapt to facilitate collaboration and in-person interactions. The need for diverse workspaces is growing, including breakout areas and private meeting rooms, as companies aim to foster creativity and teamwork among employees.

With the introduction of the EU AI Act, new regulations will influence AI adoption in Europe. This comprehensive framework aims to protect jobs, promote innovation responsibly, and ensure user safety. The evolving regulatory landscape could impact the growth of AI companies, particularly as they navigate the balance between innovation and compliance. Overall, while AI presents challenges and uncertainties for the future of office-based employment, the report suggests that any changes will likely be incremental, fostering an environment where jobs are augmented rather than fully automated. Employers are expected to invest in upskilling current employees, further emphasizing the need for a flexible and adaptive workforce in a rapidly changing landscape.