Nearly eight million jobs in the United Kingdom could be lost due to automation over the next five years, according to a recent report by the Institute for Public Policy Research (IPPR). The study identified that women, young, and part-time workers would be most affected by AI. This prediction has been supported by tech entrepreneur Elon Musk, who warned of the disruptive force of AI during an AI security summit.
Carsten Jung, an economist at IPPR, emphasizes that generative AI has the potential to transform the labor market and economy. Whether this disruption leads to job loss or economic growth depends on how new technology is managed. Jung stresses the importance of government, companies, and unions taking action to navigate this technological shift effectively.
The IPPR analyzed 22,000 different jobs across various sectors and found that the first wave of AI could endanger jobs in areas like administration, secretarial work, and customer service. The second wave, expected within three to five years, could potentially displace up to 7.9 million jobs.
The report outlines potential scenarios ranging from total job disruption to an increase in GDP with the incorporation of generative AI. To mitigate job losses and boost the economy, the IPPR calls for an industrial strategy that focuses on job creation with incentives like tax exemptions, regulatory changes, and subsidies for job training in AI.
The UK government has allocated funds to explore the potential of AI in various sectors but critics argue that a more decisive approach is needed to address the challenges posed by new technology. As other countries like the EU and US take proactive steps towards AI integration into their economies
