The Institute for Public Policy Research issued a warning, estimating that up to 8 million workers in the UK could lose their jobs due to artificial intelligence under present government policies.
In a report released on Wednesday, the think tank warned that although AI already affects 11% of jobs completed by UK workers, that percentage may increase to nearly 60% if businesses integrate the technology more thoroughly. Customer service and other part-time, entry-level, and back-office employment are particularly vulnerable, but higher-paying positions will also be more and more impacted.
The results underscore the difficulties the government has as it places a larger wager on artificial intelligence to address the productivity issue facing the UK. AI is being used by businesses of all stripes to increase productivity, and the UK Chancellor of the Exchequer recently announced an £800 million ($1 billion) investment in technology and AI to increase output in the public sector.
The senior economist at IPPR, Carsten Jung, stated that “already existing generative AI could lead to big labor market disruption or it could hugely boost economic growth, either way, it is set to be a game changer for millions of us.” IPPR examined 22,000 tasks in the UK across all job kinds.
“The government, companies, and unions have the chance to make important design decisions now to ensure we manage this new technology wisely, so a jobs apocalypse is not unavoidable. It might be too late if they wait to take action.”
The government admitted that AI was already having an impact on jobs in the financial and insurance sectors in a report that was released in November. It demanded that businesses and educational institutions give employees the tools they need to adapt.
In the context of AI adoption, government policy will determine whether there are employment losses or economic development, according to the IPPR reports.
The IPPR estimated that, depending on government policy, a “second wave” of AI adoption might boost the UK economy by up to £306 billion annually without, in the best-case scenario, resulting in job losses. Additionally, AI can result in pay increases of up to 30%.
