AI likened to the Industrial Revolution – jobs will change, but not disappear Those who are prepared with the right skills should see the least disruptionBank of England also keeping an eye on ‘AI bubble’ fears
Bank of England Governor Andrew Bailey has likened artificial intelligence to the Industrial Revolution, suggesting the productivity-aiding tech could indeed force people out of certain roles.
However key to Bailey’s proposition is that AI wouldn’t necessarily lead to mass unemployment, we’re just in the midst of one of the biggest shifts in human history.
As such, the governor highlighted the need for upskilling and retraining, noting that workers with the right training, education and skills will find it “a lot easier” to find employment in an AI-first era.
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Bailey did admit that some workers may find it harder than others. With AI capable of handling many repetitive and administrative tasks autonomously, he warned that younger and less experienced workers may struggle to access entry-level roles, indicating that the bar for entry could move higher.
The BBC reported that youth unemployment in the UK is already on the rise, at 5.1% per the most recent quarterly data. The Office for National Statistics found that unemployment among 18-to-24-year-olds is at the highest level since November 2022, which is when ChatGPT launched in public preview and AI really started to go mainstream.
“In terms of its potential to improve productivity growth, I think it’s pretty substantial,” he said on BBC Radio 4’s Today program about the tech’s effects on the UK. “It will get used across the economy.” The Bank of England is already implementing artificial intelligence, however it’s still in an experimental phase.
Separately, the Bank of England is also keeping an eye on whether AI firm valuations risk a bubble similar to the Dotcom era. But for now, many large firms are still generating strong enough cashflow to subside these worries.
“We’re watching it very closely, because we do need to watch, obviously, what the consequences of any sharp unwinding could be,” he added.
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