The Institute for Public Policy Research (IPPR) has warned that the U.K. could lose up to eight million jobs due to the increasing integration of artificial intelligence in the workplace. The think tank, however, suggests that a “jobs apocalypse” is not inevitable if the government takes appropriate action.
What Happened: The IPPR’s report, released on Wednesday, indicates that AI already impacts 11% of tasks performed by U.K. employees. This figure could potentially rise to nearly 60% if companies further integrate AI technology, reported Bloomberg.
Part-time, entry-level, and back-office jobs like customer service are at the highest risk. However, the report also suggests that higher-paying jobs will increasingly be affected.
The IPPR’s findings underscore the challenges faced by the U.K. government as it increasingly relies on AI to address the country’s productivity issues. The government has already announced an £800 million ($1 billion) investment in technology and AI to enhance public-sector output.
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Carsten Jung, a senior economist at IPPR, highlighted that the government, employers, and unions have the opportunity to make crucial design decisions to manage this new technology effectively. Failure to act promptly could lead to irreversible consequences.
“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,” said Jung. “A jobs apocalypse is not inevitable – government, employers and unions have the opportunity to make crucial design decisions now that ensure we manage this new technology well. If they don't act soon, it may be too late.”
The IPPR’s report also focuses on the potential economic benefits of AI. Depending on government policy, a “second wave” of AI adoption could add up to £306 billion (approximately $386 billion) per year to the U.K. economy without any job losses in the best-case scenario. AI could also lead to wage gains of up to 30%.
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Why It Matters: The potential impact of AI on jobs has been a topic of concern for some time. Previously, Meta Platforms Inc. CEO Mark Zuckerberg addressed this issue, stating that the rise of AI could potentially impact the livelihoods of white-collar employees. However, he also noted that AI could create new opportunities and jobs.
Meanwhile, a study by the Massachusetts Institute of Technology or MIT in January suggested that the rate of transformation from human employees to AI might be slower than expected. The researchers found that it is still not economically feasible for companies to replace employees with AI systems.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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