In a recent analysis conducted by the Institute for Public Policy Research (IPPR), it has been revealed that up to eight million workers in the United Kingdom are at risk of losing their jobs to artificial intelligence (AI) if current government policies remain unchanged. The report, published on Wednesday, highlights the potential impact of AI on the UK job market, with AI already affecting 11 percent of tasks performed by UK employees. This figure could rise significantly to nearly 60 percent if companies further integrate AI technology into their operations.
According to the IPPR, part-time, entry-level, and back-office jobs, such as customer service roles, are most vulnerable to automation. However, higher-paying jobs are also increasingly at risk of being displaced by AI. The findings underscore the challenges facing the UK government as it looks to AI as a solution to boost productivity across various sectors. With companies leveraging AI to enhance efficiency, the UK Chancellor of the Exchequer has even announced a substantial investment of £800 million in technology and AI to drive public-sector output.
Carsten Jung, a senior economist at IPPR, emphasized the pivotal role that AI will play in reshaping the labor market. He noted that while AI could lead to significant economic growth, it also poses a potential threat of widespread job displacement. The report analyzed 22,000 tasks across all job types in the UK, highlighting the urgent need for government, employers, and unions to collaborate on designing policies that effectively manage the impact of AI on the workforce.
Without proactive policy changes, AI adoption could result in the loss of eight million jobs without any economic benefits
The IPPR report also underlines the critical importance of government policy in determining the outcome of AI adoption. By modeling the potential impact of a “second wave” of AI adoption, researchers found that AI could contribute as much as £306 billion annually to the UK economy, leading to substantial wage gains of up to 30 percent in the best-case scenario. However, without proactive policy changes, AI adoption could result in the loss of eight million jobs without any economic benefits.
The UK currently lags behind other countries like India, the US, Germany, Canada, and Israel in terms of AI skills, as indicated by research from LinkedIn. With less than half of UK businesses investing in upskilling their workforce, there is a pressing need to equip workers with the necessary skills to adapt to the evolving job market. Women and young people are particularly vulnerable to job displacement by AI, with women disproportionately employed in roles most impacted by automation.
To address these challenges, the IPPR recommends the development of an industrial AI strategy that supports job transitions and ensures the equitable distribution of automation gains across the economy. This includes fiscal incentives to augment, rather than displace, jobs, regulatory reforms, and support for green jobs that are less susceptible to automation. Urgent action is needed to bridge the skills gap and mitigate the potential negative consequences of AI on the UK workforce.
As the era of AI unfolds, it is essential for governments, businesses, and individuals to collaborate in shaping policies that harness the benefits of technology while safeguarding the interests of workers. The future of work in the UK hinges on proactive measures that enable a smooth transition to a digitally-driven economy, ensuring that no one is left behind in the wake of technological advancements.
