AI Impact on Jobs in the UK
Recent findings from the Institute for Public Policy reveal the potential impact of artificial intelligence (AI) on the job market in the United Kingdom.
Risk Factors
Women, younger workers, and individuals on lower wages are identified as the most vulnerable groups facing the risk of job displacement due to AI. This includes roles such as entry-level, part-time, secretarial, customer service, and administrative positions.
Waves of AI Adoption
The report outlines two waves of AI adoption. The first wave is already in progress, while the second wave will see a deeper integration of AI technology into workplace processes.
- 11% of tasks, including database management, scheduling, and stocktaking, could be automated in the initial wave.
- During the second wave, up to 59% of manual tasks performed by workers could be replaced by AI.
Impact Scenarios
In a worst-case scenario, the second wave of AI adoption could result in 7.9 million job losses without any corresponding GDP gains. However, with proper intervention and augmentation of workers alongside AI, there is potential for an economic boost of up to 13% to GDP, equivalent to around £306 billion annually.
Carsten Jung, a senior economist at IPPR, emphasizes the transformative nature of AI on the labor market, stating that it could either disrupt employment significantly or drive substantial economic growth.
Call to Action
The IPPR report calls for proactive measures to manage the impact of AI on jobs. Suggestions include:
- Implementing a job-centric industrial strategy for AI
- Offering tax incentives and subsidies for AI training
- Making necessary regulatory changes
The government’s recent commitment to invest £90 million in AI research hubs across the UK reflects a step towards responsible AI utilization in various sectors.
