A recent study conducted by the Institute for the Study of Public Policy (IPPR), a British charitable organization, has highlighted the significant impact of generative artificial intelligence (AI) on the job market in the UK.
Generative AI, experiencing a surge in popularity since the advent of models like ChatGPT, is revolutionizing various industries by automating tasks traditionally performed by humans. From generating text and software code to producing images, generative AI is reshaping workplace dynamics.
The IPPR report identifies two distinct phases in the integration of generative AI into the workforce. The first wave is already underway, with companies adopting AI technologies to streamline operations. This initial phase primarily affects routine cognitive tasks such as database management and organizational duties, posing a threat to back-office, entry-level, and part-time positions—roles often held by women, young people, and individuals with lower incomes.
Looking ahead, the second wave of generative AI integration could see as much as 59 percent of tasks being vulnerable to automation. This phase may extend beyond routine tasks to impact non-routine cognitive tasks and higher-paying jobs, potentially putting all 7.9 million jobs analysed in the study at risk of displacement by generative AI.
However, the IPPR emphasizes that this scenario is not inevitable. By adapting at-risk jobs to complement generative AI rather than replacing them entirely, the UK could avoid a “job apocalypse” and even experience a 13 percent increase in GDP, according to the study. Such adaptation measures could also lead to wage increases for workers and facilitate redeployment of freed-up labour into sectors facing shortages, such as healthcare.
Recognizing the need for proactive intervention, the IPPR calls on the government to implement a comprehensive strategy. This strategy should prioritize the creation of green jobs, facilitate smooth transitions between occupations, empower individuals in critical sectors like healthcare, and ensure that the economic benefits of automation are equitably distributed.
“It is crucial that all employees reap the benefits of these technological advances, not just the big tech companies,” asserts Bhargav Srinivasa Desikan, a researcher at the IPPR, underscoring the importance of inclusive policy interventions in navigating the transformative impact of generative AI on the labour market.
