Abb Takk News

WEB DESK: With the right regulation and fiscal incentives, it has estimated AI could instead boost the UK economy by £306 bn , and even increase salaries for some by over a third.

The report is the first of its kind to look at the impact of generative AI – the technology that mimics the human brain in generating text, images, and videos from scratch on the UK labour market.

Researchers analysed 22,000 tasks carried out by humans, covering every type of job, and found AI was likely to affect the economy in two waves.

In the first wave, which is already underway, one in 10 employees are already exposed to automation, with secretarial and customer jobs most at risk.

Women will be worst affected as they are more likely to be in these jobs, while young people will also suffer as firms hire fewer entry-level jobs.

However, 59 per cent of jobs considered by the study could be affected by AI’s second wave – and would increasingly include higher-earning posts.

The ‘worst case scenario’ would see 7.9 million job losses, the report found.

This is a ‘real possibility’ without government action and if companies are left to their own devices, it warns, recommending regulation and fiscal incentives to ensure people’s jobs adapt to AI rather than replaced.

If it does so, the best case scenario could lead to no job losses and an economic boost of 13 per cent to GDP.

The report suggests AI could also boost wages, with ‘huge’ increases of more than 30 per cent in some cases, although none for others.

It could also free up more workers in industries struggling with chronic staff shortages, such as social care and mental health services.

Report author Carsten Jung, senior economist at IPPR, said generative AI had the potential to be ‘a game changer for millions of us’ over the next five years.

He said; ‘The question now is less whether AI can be useful, but rather how fast and in what manner employers will use it.

‘History show that technological transition can be a boon if well managed, or can end in disruption if left to unfold without controls.

‘But technology isn’t destiny and 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.’

Co-author Bhargav Srinivasa Desikan, senior research fellow at IPPR, said: ‘We are at a sliding doors moment, and policy makers urgently to develop a strategy to make sure our labour market adapts to the 21st century, without leaving millions behind.

‘It is crucial that all workers benefit from these technological advancements, and not just the big tech corporations.’