AI Disruption: Impact on UK Labor Market


  • AI threatens UK jobs, especially for women and entry-level workers.
  • Government intervention is needed to prevent widespread job losses from AI.
  • AI could boost UK economy but risks leaving many jobless without action.

A recent report published by the Institute for Public Policy Research (IPPR) sheds light on the impending disruption in the UK labor market due to the adoption of generative artificial intelligence (AI). The institute warns that part-time, entry-level, and back-office staff are most vulnerable to job displacement, with roles such as administrative assistants, personal assistants, and customer service representatives facing the highest risk.

First and second wave of AI adoption

The IPPR identifies two stages of generative AI adoption: the current first wave and a future second wave where AI will be integrated more deeply into company processes. Currently, AI affects 11% of tasks performed by UK workers, with the potential for this figure to soar to 59% during the second wave, according to the analysis of 22,000 jobs.

Women, young people, and individuals in low-paying jobs such as secretaries, data entry clerks, and marketing professionals are disproportionately at risk of being replaced by AI technology. However, the report emphasizes that technology is not destiny and that proactive measures by the government, employers, and unions can mitigate adverse impacts.

While AI adoption poses challenges, it also presents opportunities for the UK economy. Under the right government policies, AI integration could boost GDP by £306 billion annually, potentially leading to wage gains of up to 30%. Moreover, AI could alleviate labor shortages in critical social care and mental health services sectors.

Urgent need for government action

The IPPR underscores the urgency for the UK government to develop a comprehensive strategy to navigate the double-edged sword of AI. The worst-case scenario of nearly 8 million job losses looms without proactive intervention. The report calls for policies that ensure all workers benefit from technological advancements, not just big tech corporations.

Recognizing the importance of addressing potential job disruptions, the UK government has allocated approximately $1 billion for artificial intelligence systems in the public sector. This investment aims to support workers and mitigate the adverse effects of AI adoption on employment.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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