UK Workers at Risk of AI-Induced Job Losses, Warns Think Tank

IPPR, UK : The Institute for Public Policy Research (IPPR) has issued a stark warning, estimating that up to 8 million workers in the UK are in danger of losing their jobs due to artificial intelligence (AI) under current government policies.

Impact of AI on UK Jobs

According to the IPPR, AI already affects 11% of tasks performed by UK workers, a figure that could skyrocket to nearly 60% if companies further integrate this technology. Part-time, entry-level, and back-office roles, such as customer service positions, are deemed most vulnerable, but higher-paying jobs are also at increasing risk.

Government's AI Strategy and Challenges

This revelation underscores the government's reliance on AI to address the UK's productivity issues. Despite an £800-million investment in technology and AI by the Chancellor of the Exchequer to enhance public-sector output, significant challenges lie ahead.

IPPR's Insights and Recommendations

Carsten Jung, senior economist at IPPR, emphasized the transformative potential of AI, asserting that it could either disrupt the labor market significantly or substantially boost economic growth. The IPPR urged swift action from the government, employers, and unions to navigate this technological shift effectively.

Government Response and Policy Impact

In a report published last November, the government acknowledged AI's impact on jobs, particularly in the finance and insurance sectors, and emphasized the importance of equipping workers with necessary skills. However, the IPPR report stresses that government policy will dictate whether AI adoption leads to job losses or economic growth.

Potential Economic Impact

Modeling scenarios of AI adoption, the IPPR found that with appropriate policy interventions, AI could contribute £306 billion annually to the UK economy while preventing job losses. Conversely, without policy changes, AI could eliminate 8 million jobs without yielding economic gains.

Challenges and Skill Deficiencies

The UK lags behind other countries in AI skills, according to LinkedIn research. Only a fraction of UK businesses invest in upskilling their workforce, which poses challenges for job transitions and distribution of automation gains across the economy.

Read also: India’s Youth Unemployment Crisis: Insights from the India Employment Report 2024

Gender and Age Disparities

Women and young people are particularly vulnerable to AI-induced job displacement, as they are overrepresented in roles most impacted by the technology. Furthermore, companies may reduce graduate vacancies in favor of AI for entry-level tasks.

Call for Action and Industrial Strategy

The IPPR advocates for a comprehensive industrial AI strategy to support job transitions and ensure equitable distribution of automation benefits. Recommendations include fiscal incentives, regulatory changes, and prioritizing green jobs less susceptible to automation.

Urgency of Skills Development

Janine Chamberlin, UK country manager at LinkedIn, stresses the urgency of skills development to bridge the gap between existing skills and the demands of the AI-driven workforce, emphasizing the need for both organizational and national-level strategies.

As the UK grapples with the transformative impact of AI, proactive measures are imperative to mitigate job losses, foster economic growth, and ensure a smooth transition into the era of automation.