UK salary inflation has run 5–6% annually for three years while AI compute costs have fallen 40% per year. The crossover means a 2026 hire costs ~25% more in real terms than a 2023 hire — while an AI equivalent is 60% cheaper than two years ago.
UK salary inflation hit 5–6% in 2025–26. AI workforce costs are flat or falling. Why AI agents are the structural hedge for UK SMEs.