AI to turbocharge economy but staffing threat looms

ai-robot-2The rise of AI could give the UK economy a major shot in the arm, creating £200bn in additional revenues through “the most profound technology shift in our lifetimes”, although media and marketing HR bosses fear AI will displace jobs more rapidly than it will create new ones.

That is the “curate’s egg” conclusion derived from two new reports published this week, which ultimately show that while the tech has potential, the UK is not as prepared as many claim.

The first study is from Google, which is, of course, one of the main providers of AI services. It estimates the economic boost from AI would be equivalent to annual growth of 2.6%, and would finally turn around the UK stunted growth.

The report, produced alongside public policy research agency Public First, estimates that generative AI could save the average UK worker more than 100 hours a year, insisting the economic benefits and improvements to people’s everyday lives will outweigh the hit on the job market.

Google has also backed the need for AI regulation, but stresses it should be a “nuanced approach” that does not stifle innovation in the sector.

Google UK and Ireland managing director Debbie Weinstein told the PA news agency: “This shift that we’re going through is the most profound platform shift that any of us have lived through.

“We are very conscious of the impact that this technology will have on people. Clearly there will be some jobs that will be lost, but also a whole new set of jobs that will be created.”

“We want to make sure everyone has the skills they need. We’re aware that this is a fundamental technology shift that will impact all of our lives. We’re aware of the fundamental change and the importance of getting it right while managing the downside risks.”

Google has suggested the launch of a national skills agenda to ensure workers and businesses are not left behind as AI technology develops, with a coalition formed between governments, technology firms, businesses and educational institutions.

The study coincides with a separate report, based on a survey of UK human resources bosses working in media and marketing, which maintains firms will need at least three years to be ready for the impact of AI on the workplace.

In total 35% of HR chiefs said it would take a minimum of three years before they were prepared for the impact of AI on their roles, and fewer than one in five (18%) said they would be fully prepared for the potential impact of AI on the workforce within the year.

To integrate AI, 43% were investing in their tech teams, while 47% were already trialling AI in their businesses.

The survey, commissioned by research-driven consultancy YOHO Workplace Strategy, also asked the respondents which jobs would be most impacted by AI.

Respondents put customer services and support at the top of the list (31%), followed by IT and technology jobs (27%), finance and accounting (27%), education and training (22%) and manufacturing and production (20%).

YOHO Workplace Strategy chief executive Grant Price said: “AI has the potential to be the biggest disruptor of the way the media and marketing industry works since the industrial revolution. Our research shows businesses don’t think they will be prepared for the seismic changes AI will have until three years’ time. But all sources indicate AI will have changed radically in that time and businesses need to prepare for this now.”

The survey also revealed the top five concerns about AI in the workplace, which include a lack of human interaction (37%), technical issues (33%), ethical considerations (33%), job displacement (29%) and over-dependence on technology (20%).

The types of benefits expected by respondents were improvements in decision-making (39%), better allocation of resources and time management (31%), cost savings and reduction in labour costs (29%), increases in innovation and creativity (27%) and automation of routine tasks (24%).

Price added: “AI will displace jobs rapidly in marketing and media and while it will create new jobs, this is unlikely to be at the same rate as the jobs it displaces. The winners will be those who pivot to leverage its capabilities the quickest, as AI enables the translation of data into actionable insight at speed.

“Having been born into a world dominated by technology, Gen Z are likely to adapt more quickly, and find it easier to harness AI’s capabilities as the technology continues to evolve.”

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