According to a report by the Institute for Public Policy Research, up to eight million workers in the UK are at risk of losing their jobs to artificial intelligence under the current government policy. The report highlighted that AI already affects 11% of tasks carried out by UK employees, a number that could potentially escalate to nearly 60% if companies further integrate this technology. Jobs that are particularly vulnerable include part-time, entry level, and back-office roles such as customer service, but higher-paying positions will also increasingly be impacted.
This poses a significant challenge for the government as it heavily relies on artificial intelligence to address the UK’s productivity issues. Various companies are turning to AI to enhance efficiency, and a recent announcement by the UK Chancellor of the Exchequer revealed a £800 million investment in technology and AI to improve public-sector productivity.
Carsten Jung, a senior economist at IPPR, emphasized that existing generative AI could either lead to major disruptions in the labor market or significantly boost economic growth. The report analyzed 22,000 tasks across all job types in the UK and cautioned that crucial decisions need to be made by the government, employers, and unions to effectively manage this new technology before it’s too late.
Another government report released in November recognized the impact of AI on jobs within the finance and insurance sector and called for better training programs to help workers adapt to these changes. The IPPR report stressed that government policies will determine whether AI adoption results in job losses or economic growth.
In a scenario modeling the potential effects of a “second wave” of AI adoption on the job market, IPPR found that the technology could contribute up to £306 billion to the UK economy annually without any job losses in an optimal scenario, contingent on government policies. AI could also lead to a 30% increase in wages. However, without policy adjustments, researchers estimated that AI could eliminate eight million jobs without any economic benefits.
According to separate research from Linkedin, the UK trails behind countries like India, the US, Germany, and Canada in terms of AI skills. Less than half of UK businesses are investing in upskilling their workforce, posing a significant challenge. Janine Chamberlin, UK country manager for Linkedin, highlighted that only a small fraction of Linkedin members in the UK possess AI skills, despite a doubling since 2016.
Furthermore, women and young individuals could face a higher risk of displacement due to AI, as women are more likely to be employed in roles that are most vulnerable to automation. Companies might reduce graduate vacancies and rely more on AI for entry-level tasks. The IPPR recommended the development of an industrial AI strategy to facilitate job transitions and ensure the equitable distribution of automation benefits across various sectors.
Chamberlin stressed the importance of investing in skills development, stating that it has transitioned from being a “nice-to-have” to a “must-have” in the era of AI. She emphasized the necessity for organizations to assess their current skills, identify gaps, and bridge them to stay competitive. On a national level, similar strategies are needed to prepare the workforce for the changes brought about by AI.
The IPPR proposed various measures such as fiscal incentives to support job creation, regulatory reforms, and promoting green jobs that are less susceptible to automation. It is crucial for the government to act swiftly and collaboratively with employers and unions to navigate the challenges posed by AI and ensure a smooth transition for workers affected by technological advancements.
