The Institute for Public Policy Research (IPPR) warns that up to 8 million workers in the United Kingdom face potential displacement due to AI adoption under current government policies. This concerning trend underscores the heightened risk for specific demographics, including women, younger workers, and those earning lower wages, who are particularly susceptible to automation.
AI has already left its mark, influencing 11% of tasks performed by UK workers. However, this impact could surge to nearly 60% if companies further integrate AI technologies, as revealed in a recent IPPR report. While part-time, entry-level, and back-office roles, such as customer service positions, are especially vulnerable to automation, even higher-paying jobs remain exposed, given AI’s expanding reach into complex and lucrative domains.
Government Response: Investing £800 Million in AI Technology
The IPPR’s findings underscore the pressing challenges confronting the government, which has increasingly pinned hopes on AI to address the UK’s productivity conundrum.
While companies embrace AI to enhance efficiency, Chancellor of the Exchequer Jeremy Hunt’s pledge of an £800-million investment in technology and AI aims to bolster public-sector output.
Carsten Jung, senior economist at IPPR, emphasizes the pivotal juncture at which the UK finds itself. “Already existing generative AI could lead to big labor market disruption or it could hugely boost economic growth”, he warns. The onus lies on government, employers, and unions to make strategic decisions that navigate this technological frontier adeptly.
Building a Resilient Workforce: Investing in Skills Development
In its own assessment, the government acknowledges AI’s encroachment on jobs, particularly within the finance and insurance sectors. Recognizing the imperative for skill adaptation, it calls for proactive measures to equip workers with the requisite capabilities.
The IPPR report underscores the pivotal role of government policy in shaping AI’s impact on the job market. In modeling the potential outcomes of a “second wave” of AI adoption, the IPPR highlights a stark dichotomy: with the right policies in place, AI could inject £306 billion annually into the UK economy, accompanied by wage gains of up to 30%. Conversely, without policy interventions, 8 million jobs could be lost with no economic benefits.
Responding to the IPPR’s assertions, the Department for Science, Innovation and Technology cautions against speculation, citing AI’s existing contribution of over £3.7 billion to the UK economy annually. Nonetheless, it acknowledges ongoing efforts to assess AI’s impact across sectors and emphasizes collaboration with industry stakeholders to bolster skills and talent.
Yet, challenges persist. Despite strides in AI skills development, the UK trails behind global counterparts.
Women and young professionals face heightened vulnerability to displacement, compounding existing disparities in employment. To mitigate these risks, the IPPR advocates for an industrial AI strategy that fosters job transitions and equitable distribution of automation gains. Fiscal incentives, regulatory reforms, and investment in green jobs emerge as key recommendations to navigate the AI revolution.
Janine Chamberlin, UK country manager for LinkedIn, underscores the imperative for skills development at both organizational and national levels. “Investing in skills development… is now a ‘must-have”, she asserts, highlighting the urgency of bridging the skills gap to navigate the evolving landscape of work.
Proactive Policymaking: Collaborative Solutions for AI’s Challenges
As the UK grapples with the transformative potential of AI, the imperative for proactive policymaking and concerted action becomes paramount.
The fate of millions of workers hangs in the balance, underscoring the need for a collaborative and inclusive approach to harnessing AI’s promise while mitigating its disruptive effects.