The Strategist

Study: 8 million people in Britain could lose their jobs because of AI

03/29/2024 - 02:20

A paper on the possible threats artificial intelligence (AI) poses to the regional labor market was released by the Institute for Public Policy Research (IPPR) in Britain.

The IPPR presented three potential scenarios – best-case, baseline, and worst-case. Each scenario examines three levels of risk. In the worst-case scenario, the nation's GDP would not rise and 8 million jobs would be lost as a result of widespread AI deployment. Executive and administrative roles would be the most vulnerable to the layoffs. 

In terms of demographics, the professions that women and young people currently hold, primarily administrative ones in entry-level roles where AI can take the place of humans, are most at risk.

The GDP would increase by 6.3% in the base case, but there would be a 4.4 million decrease in employment. The best-case scenario would see a 13% increase in GDP and no decline in employment as a result of worker retraining.

In order to reduce the likelihood of job losses, IPPR advises the British government to begin creating a comprehensive plan to adjust the labor market to the development of AI.